Creative CBA solutions? Do you have one? Have you seen any?
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10-12-2012, 03:14 PM
What a guy!
Join Date: Jul 2009
Location: Mimas Test Facility
Warning - long and rambly post ahead, proceed with caution. Doesn't cover all the issues, but it tries to touch on lots of them.
My unreasonable solution, which both sides should hate equally:
- (assuming a December 1 start of the season) the remainder of 2012/13 season will continue under the terms of the previously agreed to CBA, which is now set to expire July 1. This provides teams seven months to "get their house in order".
- “Hockey Related Revenue” is based on NHL's revised definition of HRR. For 2012/13 season, any adjustments (if necessary) shall occur via escrow payments.
- Effective July 1, 2013, implement a reduction of the player's share to 54% of newly defined HRR, which is the same share it was to start with in 2005. This represents a 9.4% reduction in salary for the players under contract through the 2013/14 season and beyond.
- Players' share of revenue remains at 54% provided revenue grows at 3.5% or more each year in the first five years of the agreement. If revenue growth falls below 3.5% for two or more consecutive years, player's share is reduced in a corresponding manner (ie: growth is only 2.5%, player's share drops 1%). In any case, players get no less than 50% of HRR.
- Also effective for the period of July 1-July 15, a one time amnesty buyout period to allow ownership to get under the revised salary cap for an unlimited number of players per team. All buyouts are to be for 100% of the remaining contract value.
- Future contract buyouts would not count against the salary cap, however value of these buyouts are at 100% of the contract value owed, and are taxed at $2.00 for every $1.00 bought out and tax funds go to revenue sharing. (buying out a player with a salary of $1 million costs $3 million - $1 million to the player and $2 million to R/S)
- CBA initial length is 10 years. If it is determined that an extension is agreeable to both sides, extensions will be in three year terms.
Player Contracts & Free Agency
- First level (ELC) contracts (from ages 18-21) are capped at current levels & bonus structure.
- Second level contracts (from ages 22-25) are capped at 5% of the team's overall salary cap (i.e.: $70 million salary cap, the most that a player can be signed to is $3.5 million). Players in this category are not waiver exempt when assigned to a junior league, but draft pick compensation would be required based on number of NHL games played (chart TBD).
- A player becomes a free agent at the age of 25, regardless of how many games are played (or not played) in the NHL. Teams holding a players' rights at age of 25 when they hit free agency have right of first refusal, and current RFA compensation levels remain similar.
- Players over the age of 25 that are signed to NHL contracts count against the salary cap, even if they are playing in other leagues.
- Individual players' contract will be capped at 15% of salary cap ($70 million cap, max salary is $10.5 million)
- The age limit for retirement contracts counting against the cap is increased to age 40.
Salary Cap & Revenue Sharing
- Yearly salary earned is what counts against the cap for a certain year, not the average amount (no front loading contracts is allowed anymore – in my opinion, this is what is causing the owners to "lose" money with record revenues as the actual salaries are not tied to the cap, just the average salaries).
- Up to $5 million in cap space may be traded by a team for a player or draft picks, to help a team reach the draft floor. The team that acquires this cap space must pay a 5:1 luxury tax, to be paid into revenue sharing. This cap space may not be carried over after the end of the season. Acquiring cap space means the team may not collect revenue sharing income.
- A team may also exceed the salary cap during the season, with a luxury tax of 10:1 and a maximum of $5 million, to be paid into revenue sharing. A team may only do this once per five year period. Exceeding the cap means the team may not collect revenue sharing income for that five year period.
- LTIR may be granted (without consideration for # of missed games) to teams who have players that are seriously injured after the trade deadline (expected to miss 4-6 weeks, as an example), and may not return during the regular season.
- NHL takes ownership of all broadcast rights, including regional broadcast rights. Only 25% of the money generated in the local market remains with that franchise, the remaining 75% of the money generated is distributed equally among the remaining franchises.
Ownership & Other Misc. Stuff
- The NHL is barred from having ownership of a team for longer than eighteen months. If a suitable local owner is not found during the first year of league ownership, the team must be offered to out of market interests, including those who may relocate the team at a relocation fee of $crazyamount, to be shared by owners only (as it would not be considered hockey related revenue). If no owner is found, the franchise is dissolved and a dispersal draft is held.
- World Cup idea as mentioned above (re-renaming it to the Canada Cup). Players participation costs would be covered as part of the revenues from the Canada Cup (ie: insurance, accommodation, per diems, etc.) along with bonuses for team performance (ie: winning = players get x amount of $. Second place is less $, etc.).
- NHL is not permitted to make unilateral decisions on items directly affecting players' (such as divisional realignment, number of and location of exhibition games, heritage classic venues, etc.) without first passing a motion through a joint committee comprised of NHL executives and NHLPA reps. This includes discussion on destination markets for new / relocated franchises.
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