NHL dispute breakthrough 'close'

The NHL and NHL Players Association are close to a deal which might end the dispute which saw the 2004-05 season cancelled, according to reports.

Toronto's Globe and Mail newspaper said the two sides have agreed a formula for applying a salary cap based on each team's revenues.

The league had demanded a cap at 54% of revenues, but the actual percentage settled upon is not known.

"They still have a way to go," a source close to the talks told the newspaper.

With a large disparity in revenues among the league's 30 teams, it is not clear how the salary 'floor' and cap will be applied to each team.

The Globe and Mail said the amount would range from $17.5m to $29m and includes player benefits, signing and performance bonuses, which can cost as much as $4m.

The newspaper also reported that a luxury tax will kick in at the midway point between the floor and the cap to allow wealthier teams to spend more money while preventing large differences in team payrolls.

The potential breakthrough has come after six weeks of negotiations aimed at ensuring the 2005-06 NHL season can begin on time in October.

However, a new collective bargaining agreement is still far from being signed off.

The two sides are now discussing salary arbitration, free agency, qualifying contract offers and several other issues.

Failure to agree on any of these could scupper any deal.