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The National Hockey League's 2020 Collective Bargaining Agreement

Abstract

In July of 2020, the National Hockey League (NHL) and the NHL Players’ Association (NHLPA) were negotiating an agreement on a return-to-play plan for the 2019-20 season interrupted by the COVID-19 pandemic. At the same time, the two parties were negotiating an agreement to extend the league’s collective bargaining agreement (CBA) through the 2025-26 season. The CBA governs various aspects of how the league is run (e.g., length of season and scheduling of games), including how revenue is split between players and owners. Students are thrown into the middle of the negotiations by being asked, from the perspective of both players and owners, how a series of transactions should be treated for revenue sharing purposes.

Learning Objective

To understand the use of judgment in accounting as well as accounting concepts like accruals, matching, and conservatism.

Appropriate for the Following Course(s)

financial accounting

The National Hockey League's 2020 Collective Bargaining Agreement

Educator Copy*

*An educator (non-watermarked) copy of this case is available only to individuals who hold teaching positions at academic institutions and want to use the case in a course.

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