NHLPA starts another 'disclaimer' vote
View Single Post
01-05-2013, 09:17 PM
Join Date: Mar 2002
Originally Posted by
None of the owners are losing 'massive' amounts of money, save maybe one or two (and the Leafs are corporate owned, incredibly well financed and could afford not to play for years without any risk to the franchise). You forget that for most teams, payroll is over 50% of their revenue, and they're not paying any of that at the moment. Neither are they paying for the massive amount of operational costs involved with running a hockey team. The only thing they are covering are their fixed costs (much of which if financed by debt, the interest upon which is tax deductible) and those losses will also carryforward to be applied against future earnings, so their real losses after tax are pretty damn small in the grand scheme of things. And they can make it all back if they want in salary in the future, because there is still a big gap between the floor and the cap that affords them flexibility.
Most of the players on the other hand are throwing away a material percentage of their lifetime earnings that they will never recover. For nothing. I think the players should have hired a financial advisor to work alongside Donald Fehr.
Keep in mind the losses of the owners are spread over 10 (ish) profitable teams. The losses of the players are spread across 750 players (ish) Although the players will lose money in the short term, I believe, they wont be losing in the long term. They kept their UFA and RFA rights, they owners have moved off their 'hill to die on' and if the players simply caved, this would have been a 5yr CBA (at the request of the owners) and another lockout.
If the players allow themselves to be trampled, they can/should expect to continually be walked on/locked out.
At least this time, come the next lockout, the owners will have to fight for the UFA/RFA rights, contract length and to get the PA down from 50%. If they bent over, come the next lockout, the PA would be looking at non-guaranteed contracts and even lower share of HRR.
Fehr's best card was the Revenue Sharing for two reasons.
1) it should help the overall stability in the league.
2) I'm not sure the big markets will continue to support the small ones. They have lost a good amount of profit due to the lockout. The money they will save in the gains (57% to 50%) will now be paid to small markets in revenue sharing.
Definitely not saying they players win or even close to win, but the loses seem to have been somewhat minimized IMO. According to what twitter/TSN etc.. are currently reporting. They lost in the short term, but didn't necessarily in the long term.
View Public Profile
Find More Posts by Steve