Why Paul Kelly thinks expansion would help end NHL lockout
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10-30-2012, 12:14 AM
5 Mike Rupps
Join Date: Feb 2012
Originally Posted by
Well expansion fees are not ever going to count as HRR because it is a one time fee. Basically revenues would go drastically up one year and then drastically back down which would cause havoc on the cap and result in high escrow.
However, a portion of expansion fees could be used as that "make good" fund in the owners proposal.
Not exactly. Expansion doesn't count as revenue, in part, to avoid the phenomenon you describe, but mostly because the owners just don't want it to.
Reason Kelly thinks that topic would end the lockout is because player gross goes up drastically, the cap rises moderately (if the teams are in healthy markets immediately), new jobs are created and the guys on the other side of the table don't lose a dime to give any of this to the PA.
From the standpoint of these two parties...both win big.
It's stuff like this why I've always liked this guy a lot. He was all over the headshot issue, too, before Eric Lindros and Andy Ference convinced everybody to fire him by locking them in a hotel auditorium until 4 am. Then everybody with a loud voice kind of forgot about it for 3 years.
just read the article. He wants to use expansion windfall to bridge the monetary gap. That -might- work. It would all depend on if the owners thought they could raise the price on buyers by enough to still get what they want.
Last edited by billybudd: 10-30-2012 at
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