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08-15-2012, 03:27 PM
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Jarick's Avatar
Join Date: Jul 2007
Location: St Paul, MN
Country: United States
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There is a flaw in the system that it's a direct tie to hockey revenues. That needs to be loosened up or split.

Right now, if I'm correct, it's something like (simplifying obviously):
Salary = 0.57*Revenues

Where it chould be something closer to:
Salary = $500M + 0.40*Revenues

What that would do is make the salary cap fluctuate a lot less, one way or the other, and allow teams (both struggling and big market) to keep more profits. And if the attendance slips, they could (gasp) drop ticket prices a bit.

So if revenues are $3B, salaries are 0.57*$3,000M = $1,710M / 30 = $57M, the cap is $8M higher and the floor is $8M lower ($65M and $49M respectively). If you use my system, salaries = 0.4*$3,000M = $1,200M / 30 = $56.67M, no difference really.

But if revenues increase to $4B, under the current system the cap and floor would be $84M and $68M, which means the small teams would REALLY struggle to hit that floor without SERIOUS revenue sharing. Under my system, the cap and floor are $78M and $62M. Much more manageable.

If you really want to get groovy, you roll back the salaries some by eliminating the 15% escrow, and then you are lowering costs more.

Then you can also go another step and make the salary floor say $10M below the midpoint and the cap $5M above the midpoint, but then have a softer cap (with penalties) that float to $10M above but with a penalty that goes to the revenue sharing pool. Or make a franchise exception that can be used for one player only that allows that player's salary to not count towards the cap. Etc, etc.

There are a million ways to resolve it, and it really needs to happen for the health of the smaller teams. The last CBA was great for the health of the league as a whole and for the players, now the teams do need to get some back. Which is why the NHLPA proposal wasn't so nuclear. They realize they are going to have to give up ground.

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