It says here Players talking of $60 million luxury tax threshold
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09-13-2004, 02:09 AM
Join Date: Apr 2004
Location: BRONX NYC
I have no problem with creating a competitive cap, with a tax system for going over the top. The system must favor teams in retaining their own players.
Taking what I would consider a fair cap of 40million, and useing Jerome Iglinia as an example of a free agent. He's the Flames player for say 5+ years and they want to retain him. The Flames are allready at say 38million in salary without him, obviously 2mil aint gonna do it, so they give him 8 mil, the 6 million over the cap you have to pay a 10% tax on that money over the cap. If he was on the team less than 5 years its 10% for every year under 5 years (on the team 2 years via a trade you would pay a 30% tax the first year, 20% the second ect, untill the player reached 5 years) Now say he doesent want to return to the Flames and he takes a contract from the RedWings, the Wings are also at 38 mil but they want him really bad. so they give him 9mil it puts the wings at 47 mil, the wings pay 50% the first year, 40% the second ect,ect. The tax applys to players with the least tenure first. if the wings stayed under the cap in the signing they would pay a one time 10% tax on the toatle of the contract. If at anytime they went over the cap, the players with the least tenure are taxed accordingly. It's not the 7 million thats taxed, it's the players salary, over the cap is over the cap PERIOD, if you have 20 freeagents under 2 years on the team, tuff, your gonna pay alot of taxes on those salarys. Your own players say under the age of 22 with rookie 2way contracs don't count tword the cap.
Of course there should be injury exceptions(insurance, if any, pays the salary, not the team)
Now the trickey part, the owners want a salary cap, fine, but the owners must spend the money and compete. If your management stinks, if you can't markett your team, you can't sell tickets or sell merchandise, TUFF! If ya can't make enough money Move the team, sell the team or close up shop.
This makes just as much sense as anything else I've heard from both sides.
The owners want cost certinty, fine, but they must also create a system that the players can be paid fairly, tax money should not be going back to the owners, but into promoting the game. A new direction must be taken into promoting the sport, exactly what baseball did after the last strike. If hockey cant find ways to sell itself better it wont matter what kind of salary cap is put into place.
Garry Bettman is bad for the NHL, he does not represent the sport or the leauge, he should be replaced, new leadership is what is needed, not a yes man for the owners. The players should be demanding that because it's in their best intrest to have sombody to drag the old ownership kicking and screaming into the 21'st century.
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