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10-02-2012, 08:48 AM
  #61
hatterson
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Quote:
Originally Posted by AHockeyGameBrokeOut View Post
It's not identical. We know what the owners are spending the money on, because they have to prepare an approved team budget.

Have the players prepare us budgets so we know what they're going to spend the revenue on and then maybe it'll be identical.

Owners are still spending money according to that budget right now.

Players? What are they buying? Another case of Rothschild Chateau '69 to go with their new Aston Martin?
That's not at all how a budget works, not to mention that team budgets aren't public...

If I budget $10,000 per home game to pay my arena workers (ushers, ticket takers, security etc.) I don't have to still pay out $410,000 if the entire season is cancelled.

Yes, teams still do have expenses and employees to pay but their costs are very significantly lower under a lockout than in a normal season, even excluding player costs.

In addition, the players also have expenses. They have mortgages to pay, they have kids to take to the doctor, groceries to buy, car loans to pay off. Even then, that doesn't consider the opportunity cost of a missed season. Economically, having $5 and spending it, and having $0 with an opportunity to make $5 but not taking it, are the same. Both cost you $5.

A player who has a 5-7 year career (the majority of the NHLPA) giving up 15-20% of it so that he can make 10% more per year actually hurt himself financially. An owner doesn't have a 5-7 year career, they have a 20-30+ year 'career' and also have a valuable good to sell at the end of it.

Generally speaking, owners of sports teams have a significant advantage over players in lockout situations because they have longer to make back the losses and have the value of their franchise increase as a result of increased profitability (if the lockout is successful in reducing player compensation)

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