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01-03-2013, 10:37 PM
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Originally Posted by Fugu View Post

In general, for the bigger teams, it runs at about half of gate receipts.

The problem there as well is that several teams, perhaps a third, have very low local TV revenues, maybe not even $5 MM per year. Compare that to Toronto's $40+ MM and gate revenue of $2 MM/game.... You also have several other teams that are $20-30 MM in TV money. It's always been about uneven revenue.

My eyeballing of the local TV money had it at roughly $400 MM. Add to the national contracts, and you have $700 MM that could be shared. That's about $23 MM per team. The local money is about $13 MM per team, so if the top ten gave up that money altogether (a la the NFL style), and your hypothetical gate money, the amount going into an RS pot would be: $130 MM + $96 MM = $226 MM from the top ten. The poor teams would gain that exclusively, plus receive the full share of the national money, or $10 MM each.

I'll try to check my math in a bit. I'm multitasking at the moment.

Now, here's what you said in that other thread:
Question: If the only piece of revenue sharing the NHL did was an NFL-style 60-40 gate revenue split, how would that compare to the revenue sharing agreed to in the current NHL negotiations?

Short answer: If the NHL split all gate revenue 60-40, they would in effect redistribute $94.72M from 16 teams (including all 6 Canadian franchises) to the rest of the league. In the current negotiations, the NHL has agreed to share $200M from 10 teams, while the NHLPA is asking for $250M.

The revenue transfer program is funded by more than just the contributions from the top ten earners. Your exercise seems to imply that the top ten teams are ALL giving $14 MM each (to get to the old RS total), and that that would be expanded to $20 MM per team. That isn't what's happening.
The problem with what you're saying is that I think you're confusing sharing with redistribution again. Just look at the bold. You're suggesting that the top ten teams will just "give up" their total local TV money. But that's not what happens in the NFL. Every team gives up its money and then gets back the average of everyone's contributions. It's that "getting back" that you, and countless other people who mistake sharing and redistribution, aren't accounting for. When you factor in that "getting back," you really aren't giving up nearly as much as it might appear. I don't know how to manipulate your figures, because you haven't provided what the average is, you've just suggested that the top ten teams make $13M each. But in order to really simulate the NFL model, you then have to subtract the average TV deal from what they put in, because that's what they'll take right back out.

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