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09-19-2012, 08:44 PM
  #157
ps241
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I've been putting a lot of thought into this and I think I found a solution that addresses both sides. The players want their share, and the owners want the player salaries tied to revenues as part of a cap.

The big problem with the Cap as it is today is the wealthiest teams get the biggest advantage from the cap. Their 50% share is not actually being paid by the wealthiest teams, it's being partially paid by the poorest teams.

I will use the Forbes 2010 financials (http://www.forbes.com/lists/2010/31/...s-10_rank.html) as a basis for the analysis or model (note some changes as revenues have grown and Atlanta moved to Winnipeg). Based on that year the total revenue generated would have been $2.9B, and 50% of that would be $1.45B that would go to the players if they agreed on 50% in the expiring system or nearly $49M per team. The real problem is the disparity in revenue. Toronto tops the list at $187M in revenue, while the Islanders bottom out the list at $63M in revenue. The Islanders end up paying 77% ($49M share of $63M revenue) and Toronto ends up paying 26% ($49M share of $187M revenue). This is the problem in itself, and there is not sufficient enough revenue sharing to balance that.

My thought is that you find a baseline salary cap level where every NHL team can be profitable paying 50% of it's revenue to the players. Then you take 50% of the revenue of each team individually minus the salaries and put that in escrow to divide equally among the players.

The lowest revenue teams like Phoenix and New York Islanders generate about $65M a year in revenue. If you take 50% of that for $32.5M that is the new salary cap mid point. Say a range of $22.5M-42.5M for the salary cap.


PHP Code:
TEAM         2010 REVENUE      50REVENUE     CAP        ESCROW
TOR         
$187.0          $93.5          $32.5          $61.0 
MTL         
$163.0          $81.5          $32.5          $49.0 
NYR         
$154.0          $77.0          $32.5          $44.5 
PHI         
$121.0          $60.5          $32.5          $28.0 
CHI         
$120.0          $60.0          $32.5          $27.5 
DET         
$119.0          $59.5          $32.5          $27.0 
VAN         
$119.0          $59.5          $32.5          $27.0 
BOS         
$110.0          $55.0          $32.5          $22.5 
NJD         
$104.0          $52.0          $32.5          $19.5 
LAK         
$98.0          $49.0          $32.5          $16.5 
CGY         
$98.0          $49.0          $32.5          $16.5 
OTT         
$96.0          $48.0          $32.5          $15.5 
DAL         
$95.0          $47.5          $32.5          $15.0 
MIN         
$92.0          $46.0          $32.5          $13.5 
PIT         
$91.0          $45.5          $32.5          $13.0 
SJS         
$88.0          $44.0          $32.5          $11.5 
EDM         
$87.0          $43.5          $32.5          $11.0 
ANA         
$85.0          $42.5          $32.5          $10.0 
COL         
$82.0          $41.0          $32.5          $8.5 
WAS         
$82.0          $41.0          $32.5          $8.5 
BUF         
$81.0          $40.5          $32.5          $8.0 
STL         
$79.0          $39.5          $32.5          $7.0 
FLA         
$76.0          $38.0          $32.5          $5.5 
CBJ         
$76.0          $38.0          $32.5          $5.5 
TBL         
$76.0          $38.0          $32.5          $5.5 
CAR         
$75.0          $37.5          $32.5          $5.0 
NAS         
$74.0          $37.0          $32.5          $4.5 
ATL         
$71.0          $35.5          $32.5          $3.0 
PHX         
$67.0          $33.5          $32.5          $1.0 
NYI         
$63.0          $31.5          $32.5 
This way 50% of the revenues from EACH team goes to the players, so they get their share. The owners get cost certainty but the most wealthy owners finally have to pay their share. It's only fair, and I would imagine the majority of the owner would prefer to pay based on THEIR revenues not the league average revenues divided equally. The players get their share, everyone is happy (but the richest teams who suddenly have to pay 50% of their revenue instead of 25-30%).
I still think this is one of the more interesting outside the box ideas or at least frameworks for a proposal that could help allot with Revenue sharing and preserving competitive balance.

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