Anti-lockout protests in Buffalo and around the league
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09-14-2012, 09:17 AM
Join Date: Jul 2005
Originally Posted by
But if the league as a collective is running a deficit, the only way to fix it necessarily includes cutting player costs - you can't revenue share your way out of a leaguewide net loss. You can just spread the loss out.
Theoretically if 29 teams turn a profit but that one team that doesn't is suffering from such a huge loss that that collectively, on paper, it shows the league is losing money, and all you can come up with is cutting player costs, then you're not addressing the real problem.
Before the salary cap was put into place, player salaries equaled 74 percent of revenue value. To level the playing field, the NHL came up with a model that caps salary based on revenue numbers, limiting the players to what we all know to be 20% less than what they previously accounted for.
Record revenues have now increased 1.2 billion dollars per year over the last lockout. At 43%, that's half a billion dollars extra going to the owners, per year. Yet some franchises are still losing money. That indicates a serious problem independent from salary that they are refusing to address.
Unless the NHL addresses management and market issues that plague certain franchises even in the period of record growth, they need to accept the fact that some franchises are going to lose money no matter what the players earn.
Last edited by zbubble: 09-14-2012 at
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