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Risk sharing

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Old
10-09-2003, 10:45 PM
  #1
Yammer
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Risk sharing

I think that one of the sticking points philosophically is that the players do not share the risks of doing business. They, of course, bear the entire brunt of injury, but in terms of their pay, their contract is fulfilled regardless of personal or team performance.

Why not share the risk?

The model here is the movie business. Plenty of movies are made on a relatively thin budget, with the talent picking up points of the gross. That way, the project can move ahead and the talent makes good money on the back end.

Cannot that system be applied to hockey, with players picking up a basic inalienable salary and generous insurance, with the rest of their compensation as a fraction of gross league revenue? That way, if the NHL makes out, the players make out. If the NHL has a bad year, then the players have a bad year. Then everyone shares the risk, and has incentive to promulgate and foment the revenues.

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10-10-2003, 04:33 AM
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Players would agree to a cap long before they'd agree to that.

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Old
10-10-2003, 04:54 AM
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Quote:
Originally Posted by Yammer
Cannot that system be applied to hockey, with players picking up a basic inalienable salary and generous insurance, with the rest of their compensation as a fraction of gross league revenue? That way, if the NHL makes out, the players make out. If the NHL has a bad year, then the players have a bad year. Then everyone shares the risk, and has incentive to promulgate and foment the revenues.
The problem with this idea is that the players don't trust the owners and the numbers they report. They've got good reason to not trust them too! There are probably more NHL owners or ex-owners that have (or will) served time then NHL players.

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10-10-2003, 05:33 AM
  #4
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Quote:
Originally Posted by BigDaddyMeatWhistle
The problem with this idea is that the players don't trust the owners and the numbers they report. They've got good reason to not trust them too! There are probably more NHL owners or ex-owners that have (or will) served time then NHL players.
No, that's really not a problem. Any CBA would state what constitutes revenues and every owner would have to sign that CBA. So, lying would not only be fraud but there would certainly be penalties included in the CBA that would hurt the franchise considerably.

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