: Confirmed Trade with Link:
[TOR/TB] Petiot for Kolzig, Rogers, Heward, 4th
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03-06-2009, 11:11 AM
Business of Hockey
Join Date: Jul 2006
Location: South Mountain
Originally Posted by
I read Article 49 of the CBA last night, and I think it's pretty clear that TB *does* stand to gain revenue-sharing $ by dumping salary in this trade.
With the NHL wading into the morass of requiring "value" in a trade, they set the stage for making themselves look foolish - like they do now, having approved this trade.
Burke said last night that they had pre-cleared this transaction with the NHL, but had to wait to comment until it cleared the queue. I would love to have heard Bettman's language when he realized they would have to approve this!
So the value of this transaction to TB is pretty evident. To me, the interesting angle is the value to Toronto. As a previous poster pointed out, its quite possible that Tampa agreed to provide Toronto with some other "consideration" down the road. I won't speculate on what form that could take, but as a Leaf fan, I know what I'm hoping it is!
There are two forms of revenue sharing:
a) "Standard" revenue sharing that you commonly see published that such-and-such team got $12m in revenue sharing. A trade like this has zero impact on that revenue sharing eligibility because it has nothing to do with team payroll.
b) "Escrow" revenue sharing, which only occurs when a player escrow refund is triggered. That will happen this season (the only other season it's happened before is 06-07). When this happens, all teams under the cap midpoint ($48.7m) receive escrow refunds equal to the difference, subject to availability of escrow funds to distribute.
Tampa could gain (b) revenue sharing if their team cap number ends up under $48.7m. The most escrow revenue sharing Tampa could gain is equal to the amount of $ their payroll was reduced by. Meaning, at most Tampa gained about $400k in escrow revenue sharing from this deal ($2.5m Kolzig - $500k replacement prorated by 21%).
If Tampa's cap finishes at or above $48.7m then they won't have gained any additional revenue sharing $'s from this trade.
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