2012 Lockout Discussion Thread
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08-15-2012, 11:05 AM
Way down in the hole
Join Date: Oct 2011
Originally Posted by
Been hunting around for details. Found this article:
As perhaps suspected, there is less to the NHLPA offer than meets the eye.
The PA isn't offering to reduce wages one bit. Instead they are saying they will take an increase in the cap of "only" 2% in year one, 4% in year two, and 6% in year three. The enter "players are giving up between $400 and $800 mil" is that if you take the average increase in league revenues from the last few years and project it out over the next three.
It disappoints me all of this has been done in the public. If the parties were serious about negotiating things would be done behind closed doors.
Yes, it's widely painted as a reasonable offer by the clueless sports media (hint: they didn't go into sports journalism because of their 1337 math skillz), but basically in response to the owners' offer of a 27% salary cut, they've countered with raises of 2%, 4%, 6% and an option to take the better of another 6% raise or 57% of HRR (whichever is higher). This money they're donating to revenue sharing doesn't exist yet - and may never exist if the the US goes back into recession, or Canada's real estate bubble pops. It comes out of their pockets only if league growth exceeds 2%, 4% and 6% over the next 3 years. And then in year 4, they see it all back.
It isn't a bad starting point though. I could see them working it out to an ongoing 52-48 split (players-owners). The 5% the players give up (compared to this CBA) being matched (maybe not dollar for dollar - say $0.50 for every "NHLPA dollar" since the owners are already sharing a some revenues - TV, merchandise, etc.) and pooled for revenue sharing for the league's lower revenue teams.
So current league revenues are $3.3 billion.
57% = $1.881 billion
52% = $1.716 billion
Difference = $165 million to NHLPA revenue sharing
Owners' contribution of $82.5 million (half of NHLPA - raised through a 5.2% revenue tax on every team's HRR)
Total revenue pool: $247.5 million
Distributed via some formula to the bottom, say, 15 teams = $16.5 million each - Hey, that's 61% of what Shae Weber will make over the next year!
Plus the salary cap is $57,200,000.
There you go - financial security for Phoenix.
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