View Single Post
Old
10-19-2012, 05:53 PM
  #196
mouser
Global Moderator
Business of Hockey
 
mouser's Avatar
 
Join Date: Jul 2006
Location: South Mountain
Posts: 12,175
vCash: 500
Quote:
Originally Posted by rt View Post
Alright, I need some help. THIS MEANS YOU MOUSER. haha

In the now infamous PROPOSAL NUMBER THREE (dun! dun! dunnnnn!)

The players suggest all existing contracts are honored while all future contracts are factored into the fifty fifty split effective immediately. Makes sense.

I guess the idea is that year one puts the player share at 56-57% and year six is probably somewhere around 50-51% overall. Those are pretty obvious, and I totally get that. What I really have no idea about is what years two, three, four and five would look like. At least roughly. Do we go from 56.5% (*ish) in year one to something like 55% in year two or is it more drastic like 52% in year two? How long does it take to get at least reasonably close to 50.5%(ish)?

Also, how would this effect the salary cap limits? Is it as simple an impact as the overall percentage or does this get muddied by "segregated" salaries?
Proposal 3 as I understand it essentially says any player that currently has a contract receives 13% of it guaranteed each year outside of the player share of HRR, then the remaining 87% is subject to escrow and the 50/50 split. Players on existing contract only have 87% of what should have been their cap number.

I didn't try to tally every future year, but looking at the "last" year 6 of the proposed CBA there are $300m in existing contracts for 2017-2018. So the player compensation in year 6 would be 50% of HRR plus $39m (13% of $300m).

If hockey revenue increased 5% year to year then in year six the players would be receiving 50.9% of HRR. If hockey revenue increased 3% year to year the players would get 51.0% in year six.

You're looking at sometime in years 7-9 before it gets to 50.5%.


With a 5% year to year revenue growth you'd have:
Year 1: 56.8%
Year 2: 55.2%

With 3% year to year revenue growth it's:
Year 1: 56.9%
Year 2: 55.3%


Can see why it's not very exciting from the NHL's POV.

mouser is online now   Reply With Quote