Originally Posted by Freudian
Since there seems to be some confusion about NHLPAs proposal and some think it's a 50/50 split they are offering, I thought it would be appropriate to clarify.
NHLPA wants a guaranteed $1.91B in collective salary that will grow with 1.75% each year as long as it means the players share of HRR is larger than 50%. When 50% of HRR means a higher total salary for the players, it switches over to a linked system where players get 50/50.
The beauty of this system for the players is that owners wear the full risk of low growth in revenue.
Lets take a few different growth rates to illustrate how silly it is to call the players proposal a 50/50 split. I'm ignoring the lost games this year.
Scenario 1: Fans are really upset and revenue decreases with 1% each year on average
Players share of HRR
Year 1: 58,6%
Year 2: 60,3%
Year 3: 61,9%
Year 4: 63,7%
Year 5: 65,4%
Year 6: 67,3%
Scenario 2: Revenue increases with 2% each year on average
Year 1: 56,9%
Year 2: 56,8%
Year 3: 56,6%
Year 4: 56,5%
Year 5: 56,4%
Year 6: 56,2%
Scenario 3: Revenue increases with 5% each year on average
Year 1: 55,3%
Year 2: 53,6%
Year 3: 51,9%
Year 4: 50,3%
Year 5: 50,0%
Year 6: 50,0%
Scenario 4: Revenue increases with 7% each year on average
Year 1: 54,3%
Year 2: 51,6%
Year 3: 50,0%
Year 4: 50,0%
Year 5: 50,0%
Year 6: 50,0%
