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01-04-2013, 11:17 AM
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Originally Posted by ottawah View Post
First part is correct, negotiations never would have happened.

Second part though, think about. Why would the players go on strike before the playoffs? Its a huge chunk of yearly revenue. For every buck they cost the owners, they cost themselves far far more. For every playoff dollar lost, the owners lose 43 cents - expenses, the players lose 57%. The escrow accounts would be hit to the tune of 30% or more. The players would never strike in that instance.
Your only looking at the HHR part of the equation.

IIRC revenue generated during the playoffs counts towards calculating HHR and in effect what the cap is and what the players get paid, BUT I do believe the players don't actually get paid a salary during the playoffs. They get a specific amount from a NHL playoff pool based on where they finish in the playoffs. So to me the playoffs are where the owners make quite a bit more money on a per game basis than during the regular season.

As well, the owners do generate some revenue streams that are not part of sharing with the players.

Here is a breakdown as to what it costs the NYR when they miss the playoffs from a few years ago...

Tickets for the first round of the playoffs cost roughly 25 percent more than regular-season games, so the team would generate about $2 million in ticket revenue for each first-round home game. As the eighth seed, the Rangers would host up to three home games, worth as much as a total of $6 million.

But like all playoff teams, the Rangers would give about half of that money to the N.H.L. In each round, the clubs still playing must pay the N.H.L. a low six-figure fee to help cover the leagueís costs to produce the playoffs, including expenses for travel, marketing and officiating. The fees increase each round.

The Rangers would also contribute part of their playoff ticket revenue to the N.H.L.ís revenue-sharing program, which redistributes money to the financially weaker teams.

The Garden, though, would keep all food and beverage sales because it runs the concessions. Fans spend $18 to $26 a person at N.H.L. playoff games, said Chris Bigelow, the president of Bigelow Companies, a consultant to stadium operators. The Rangers would be on the high end of that range.

Roughly half of the revenue from food and beverage sales covers the Gardenís expenses for buying the hot dogs, pretzels and soda, and for hiring the workers to serve them. The Gardenís profit, then, is equal to 18,200 fans multiplied by about $13, or about $235,000 for each playoff game.

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