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10-03-2012, 12:28 PM
  #69
AHockeyGameBrokeOut*
 
Join Date: Feb 2011
Location: Colorado
Country: United States
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Originally Posted by hatterson View Post
How do increasing stock prices and stock splits affect the fact that the corporation would still have to be giving out more stock. A stock split wouldn't magically place more shares in the hands of the corporation, it just means that everyone has double (or triple) the number of shares they used to have and they're worth half the price.
It also doubles (or triples) the amount of unowned shares. Greater demand for greater supply means that more people have the opportunity to buy-in and this creates greater volume. Suddenly, the stock is affordable.

Quote:
Originally Posted by hatterson View Post

Idea 1: Offer the players a share of ownership in lieu of a higher percentage of revenue.
Shares.

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Originally Posted by hatterson View Post
Idea 2: Create some NHL super corporate entity where teams are simply locations in the corporation not independent entities who have formed a league together (only real way to use profits to create new teams on a league scale)
A conglomerate.

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Originally Posted by hatterson View Post
Idea 3: Offer this new NHL corporation publicly.
A public multinational conglomerate.

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Originally Posted by hatterson View Post
The issue with idea 1 is that, while it might appease current players it does nothing for future negotiations. If I give current players 10% of ownership now for a 10 year CBA what happens in 10 years when 98% of the old players are now retired? Do I have to up my compensation to the new players or do I have to offer them ownership as well?
By that time, there will be different owners. The old players will be the new owners. Future negotiations will have current players on the other side of the table. So yes, it does a lot for future negotiations.


Quote:
Originally Posted by hatterson View Post
The issues with idea 2 are far too numerous to mention all of them but a small sample include massive anti-trust issues, significant issues about share of ownership of the new corporation for the various team owners and massive regulatory issues to prevent game fixing.
That's simple tinfoil hat paranoia. Game fixing will never happen under any circumstances.

Quote:
Originally Posted by hatterson View Post
The issue with idea 3 is that it doesn't really have a point. One you have this NHL corporation what advantages does a transition to a public company provide? Sure it'll raise some capital for the company, but where does that get used? Expansion? The issue now is that we're already having trouble keeping some franchises afloat, how is adding more going to help?
The additional capital can be used to save those currently struggling franchises. The stock expansion allows the general public to own part of the league, thus giving them a greater control. The fans can in turn be influential in preventing lockouts.



Quote:
Originally Posted by hatterson View Post
Players fundamentally don't want to be owners. They want to get a higher share (compared to owners current CBA offer) of the revenue they help generate.
The average 19-27 year old NHLer does not. Their agent does all that, they just play hockey. The average 30+ year old in the NHL is a bit more mature, having seen the world outside of the league. The problem with the NHLPA is all the hotshot kids (who, while they are great hockey players - know nothing about money or business) are calling the shots. Once a player turns 30+ he recognizes he's not going to be playing hockey forever and he needs a backup plan. Let the adults make those decisions, who cares what the kids want, no matter how good they are on the ice.


Quote:
Originally Posted by hatterson View Post
How is the NHLPA lucky they get anything at all? They've helped make the owners (at least most of them) boatloads of money (profits and increased franchise value) and they have a legal right to collectively bargain for their working conditions. Also, how is "Money which is given without the promise of additional work-related responsibility" a "handout" Most people would refer to "Money which is given without the promise of additional work-related responsibility" as a normal raise. Asking for a raise isn't asking for a handout, it's asking for your compensation to be more in line with your value to the company. Certainly there can be debate over what that value is, and what your compensation should be, but asking for a raise (or in this case, asking to not have your pay cut) is fundamentally not a handout.
One, they are asking for a raise. 57% of 3.4 is more than 57% of 2.1. Even 48% of 3.4 is more than 57% of 2.1 by at least 500 million. The players are getting a raise this year regardless - because all of hockey got a raise. The problem is, they're not happy with 1.632 billion, they want 1.938. Raises are given based on tenure and job role. Generally, they're given to specific employees who go beyond their job responsibilities. A blanket raise IS a handout. It doesn't say 'you (individually) did a great job, I'm raising your pay' - it's the equivalent of a minimum wage hike. If the owners and league were smart, they'd do what most corporations in the US do - give the players that additional 7-9%, but then increase their league dues and agents fees to force them to pump that 7-9% back into the NHL right under their noses.



Quote:
Originally Posted by hatterson View Post
Players do something that is economically simple (play hockey) and are looking for economically simple compensation for that (a paycheck). It's the same as I do at my job. I do something that is economically simple (write software) and I expect to be compensated in an economically simple way (a paycheck). If I did something that is economically complex (upper management) then it would be more reasonable to receive economically complex compensation (stock options, etc.)
If playing hockey was economically simple, I think a lot more people would be playing hockey instead of whatever job they're doing right now.

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