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11-14-2012, 04:29 PM
We're Touched
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Originally Posted by Hullois View Post
The owners are being ridiculous, even after the players concede the 50/50 split, owners want them to give up all contracts rights. And this whole "we make a take it or leave it offer, then go silent for two weeks" negociation technique from the NHL is bullcrap. And all that after the best season the league ever had.

Way to go owners, let's just kill the NHL.
See this post.

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%

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