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11-20-2012, 12:44 AM
  #3
kdb209
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Quote:
Originally Posted by Beacon View Post
This whole BS that the league is offering a 50-50 split because they offered a 50% cap is nothing more than a PR trick meant to confuse people who are bad at math and/or logic.

If the cap will be dropped to 50%, the reality will be that the owners will be getting almost 60% of the revenue and the players will get slightly above 40%.

Under the old agreement, the NHL absolutely did NOT pay 57% in salaries. The cap was set at 57%, but not a single team has ever reached that cap because it would mean no room for a team to maneuver in calling up players. So even the most free-spending teams still leave a couple million in available cap space, which is 4-5% of the cap. So even the highest-spending teams actually spend no more than 52-53% on salaries.

Then there were a whole bunch of teams that don't come close to the cap. The floor is 43% and there are plenty of teams close to the floor.

All in all, under the old agreement, less than 50% was paid off in salaries. Under the new agreement, it will be about a 60-40 split in favor of the owners.
Sigh. Wrong!!!

Why do people keep repeating this crap?.

Under the old CBA, the Players are guaranteed the full 54-57% Players Share - no more, no less. If the aggregate of Actual Club Salary exceeds the 57%, the teams deduct that excess from the escrow account (if the escrow is insufficient to cover the gap, the teams keep the entire escrow and the Players write an additional check). If the aggregate of Actual Club Salary is below 57%, the Players receive all their escrow back and the teams write checks to the Players to make up the shortfall.

It is not the Upper Limit that is directly linked to HRR - it is the Cap Midpoint. If average team payrolls are above the midpoint, the players will give back through escrow(*). If the avg payroll is below the midpoint (which has never happened), then the teams will have to pay to make up any final shortfall.

(*) Modulo the actual increase in revenues compared with the 5% HRR kicker.

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