What Is Salary Arbitration in the NHL? A Complete Guide to the Process and Rule

 

 

Salary arbitration is a key part of the NHL offseason, impacting team negotiations, roster construction, and player contracts. But what exactly is arbitration, and how does it work in the NHL? Here's everything you need to know — from eligibility rules to the impact on players and teams.

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What Is NHL Salary Arbitration?

In the NHL, salary arbitration is a legal mechanism that allows restricted free agents (RFAs) to resolve contract disputes with their teams when they can’t agree on a new deal.

Rather than hold out or accept a qualifying offer, the player (or team) can request a third-party arbitrator — a neutral judge — to determine the player's salary for a new contract. The arbitrator reviews both sides' arguments and makes a binding decision based on player performance, comparable contracts, and league economics.

Who Is Eligible for Arbitration in the NHL?

Not all RFAs qualify for arbitration. A player becomes eligible based on age and NHL experience. Here’s a breakdown:

Player's Age When Signing First NHL Contract	Years of Professional Experience Required
18-20	4 years
21	3 years
22-23	2 years
24+	1 year

Example:
A 21-year-old player with three years of pro experience would be eligible to file for arbitration when coming off their entry-level deal.

Types of Arbitration: Player vs. Club

There are two types of arbitration in the NHL:

1. Player-Elected Arbitration

• The player files for arbitration before the league deadline.

• It prevents offer sheets from other teams.

• The player can’t be traded until the hearing is completed (unless waived).

2. Club-Elected Arbitration

• The team initiates the process, usually to push a deal or control salary.

• Can only be used once per player in their career.

• The team cannot request less than 85% of the player’s previous salary.

How Does the Arbitration Process Work?

Step-by-Step:

1. Filing for Arbitration
   Players and teams have a short window in July to file. Once filed, the case is scheduled for a hearing later that summer.

2. Submitting Offers
   Both sides submit a proposed salary figure and term (usually 1 or 2 years) before the hearing. These figures are not public until the hearing.

3. The Arbitration Hearing
   An independent arbitrator hears arguments from both sides.

   • Players argue based on stats, role, and comparable contracts.

   • Teams may point out flaws, limited roles, or cap constraints.

4. The Decision
   The arbitrator issues a binding ruling within 48 hours. The new contract length is usually one or two years.

5. Team Response
   Teams can either:

   • Accept the ruling, or

   • Walk away (only for awards over a certain threshold, which was $4.54M in 2024–25), making the player an unrestricted free agent.

• NHL arbitration is used to settle contract disputes between RFAs and teams.

• It provides a structured process to ensure fair pay based on performance and comparables.

• While few cases actually reach a hearing, the threat of arbitration often accelerates negotiations.

• It’s a tool that benefits both sides — giving players more leverage and teams a cap-controlled process.
  
  

  • NHL Arbitration, NHL RFA Rules, Restricted Free Agents, NHL Salary Disputes, NHL Cap Management, NHL Contract Rules, NHL Arbitration Eligibility, Player-Elected Arbitration, Club-Elected Arbitration, NHL Offseason 2025