If Revenue Sharing Is Important, Why Isn't There Linkage?
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12-10-2012, 02:08 PM
Business of Hockey
Join Date: Jul 2006
Location: South Mountain
Originally Posted by
True, but it's not linkage in the sense that that amount indeed will get paid out. Teams were disqualified if they failed to meet growth criteria per the CBA.
It was set as a "target" of 4.5%. Depending on how the numbers crunched it was possible for the actual figure to end up being higher or lower than 4.5%. If a team was disqualified that only meant the money they would have received was shifted to the other eligible recipients.
Based on some past estimate models I did, I suspect the actual revenue sharing amount paid out was rarely if ever below 4.5% HRR, and there may have been a couple years where revenue sharing could have hit 6.0% or higher like 2008-2009.
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