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11-21-2012, 01:51 PM
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Join Date: Sep 2003
Location: 1060 W Addison
Country: United States
Posts: 3,160
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Fehr is losing his constituency in the PA.

Clearly caving to the owners demands because the majority of guys see that over a 5 year deal they will never recoup a full lost season. They may not be Nobel economists, but they can count....

As for the current proposal, I think it is pretty good for the owners except for a couple of provisions.

1st you need to lower the cap floor... say 30% lower than the ceiling, not 20% as they are asking. Only way to breakeven in tough markets.
2nd you need to look at buyout rights of salaries under 3M - crazy they don't allow this but hey.
3rd you need to look at the 50% share value being flexible based upon REAL economics of HRR. Granted it is a low risk proposition as the HRR floor starts after the 1st year, but we are going into dire economic times so no guarantee 5 years out the HRR is going to look better. You need to add an "act of god" clause there linked to a viable benchmark that is tied to the real economy. Not rocket science and probably something they could work out pretty easily.
4th you need to reinsert an escrow clause for the existing contracts against HRR. You can't just payout 100% on current deals when for all intents and purposes they would only have made 85% of the deal due to the PA over accelerating the HRR calculation the past 7 years. This may not suit them but it would do a lot to fill the gap in the spirit of the original contracts signed which were always contingent upon escrow calculation.

Add those terms and the deal is done tomorrow.

bb74 is offline