STL Post Dispatch: Blues [players] get economics lesson
View Single Post
11-17-2003, 10:43 AM
Join Date: Nov 2002
Originally Posted by
Well, Daly shot it down. He said revenue sharing merely moved the losses around. The main reason nobody wants revenue sharing is because franchise valuations reflect the different revenue streams. The Red Wings are supposed to be worth $266 million. The Oilers are worth maybe $75 million. The return has to be vastly different.
Daly's still pushing for a system that doesn't require revenue sharing. He has no reason at this point to open the door to a revenue sharing solution. It starts putting more onus on solving the NHL problems on them, instead of the NHLPA. Right now, the NHL is trying to get as much out of the NHLPA as possible.
Eventually, the owners will start offering concessions. They will either move from demanding a cap to start listening to offers on a luxury tax, or they will start increasing the level of the salary cap. If they do the latter, the cap level will not be low enough to satisfy the "poorer" teams, and they will start wanting a revenue sharing system in place.
Originally Posted by
Finally, in hockey, revenue sharing is not fair to the fan who pays the freight at the box office. The Avalanche have higher revenues than the Kings because Avalanche fans pay much more for hockey than LA fans. Are we going to keep the prices the same so Avalanche fans subsidize the Kings?
Will richer teams subsidize poorer teams? The answer, quite simply, is yes. It's happened in the other sports. The owner's agreed to expansion. In doing so, they have given some control of the league to the new owners. Each owner gets a vote, and if a CBA is offered, where 10 or so teams will end up subsidizing 20 other teams, then it will be supported by the owners. Now, since any method of transfer payments is going to be accompanied by a drag on salaries, then there may not be anything to worry about with respect to falling franchise values. If a team is going to be looking at reducing it's payroll by $10 million, but in return, he's going to be paying $5 million in luxury tax proceeds or revenue sharing, then his franchise value is going to go up.
Originally Posted by
I don't have a clue.
Exactly! You don't know where these negotiations are going, yet you'll hypocritically comment on where it isn't going. The bottom line is something has to give. If you take both sides position's right now, then there is no agreeable solution. If you read between the lines, you can start to anticipate where things will go.
To me, a luxury tax is the most logical compromise between both sides position right now. It's sitting there, right in the middle. THe players will be offering a drag on salaries, and providing some degree of cost certainty to teams. The players walk out of negotiations not having to budge on their "hard cap" rule. The owners walk out of the negotiations getting salaries lowered, and a method of controlling the spending of the bigger teams. The only other middle ground is less effective salary cap solution (i.e. at a higher rate, tied to annual revenues, various exceptions, etc.), which to me, will require revenue sharing
But going back to your opinion on the matter, why are you so worried about giving a prediction? Are you worried that the outcome of these negotiations may disprove a lot of your other opinions? If the final outcome of the CBA is a solution that will put downward pressure on salaries, isn't that an admission by the players that salaries are currently too high? Wouldn't that go against everything else that you've claimed on these boards?
Also, everything that I've stated here is based on where I think the negotiations are going to go. Honestly, in this issue, the impact on the game is secondary. My commentary is based on where I think the negotiations are going. Do I care about the quality of the game? Absolutely. In fact, I've started threads on what I think the ideal CBA solution is, and the impact it will have on the game. If you want my opinion on the matter, I suggest you go back and read those threads. Otherwise, I would deal with the questions posed to you in this thread, on this issue.
View Public Profile
Find More Posts by discostu