Bettman is admitting the deal he made is a bad deal. The sports was shutdown for an entire season and the deal was no good.
Amazing, but Bettman isn't the problem.
I think until the nhl startes to shed it's dead weight teams by moving them to hockey rich areas or contraction the situation will not improve.
Franchises will continue to struggle & be proped up by the NHL, some owners will spend wildly, others will be the Islanders, fan bases feel alienated & we do the dance again in 3 to 5 years.
Not a smart business model.
The one thing that stuck out to me in this article is that Fehr is in control. He knows exactly where he want's to steer negotiations. He is playing a PR game & is making Bettman look pretty bad right noe. Of course all that can change. But it's a stark diffrence than 6 years ago when the hea dof the PA looked like a deer in the headlights of the owners & Bettmans PA puppet.
Last edited by Baby Punisher: 08-16-2012 at 11:30 AM.
Reason: Added to post.
The problem with revenue sharing, I'll acknowledge, is that it just seems like something the NDP would come up with on a bad day. It's hard -- no, make that impossible -- to get teary-eyed about the Dolan family (who own Madison Square Garden) sharing revenues. But then again, if I invested $1 billion to upgrade the building my teams played in, I can't see myself being thrilled at the notion of sharing the additional revenue generated with putzers like Charles Wang, who owns the Islanders. Don't get me wrong, there's room in life for some legislated sharing, but the essence of sports is competition -- earning your rewards. Which is why the first aspect of my revenue-sharing model will reward the teams that invest in winning.
Cablevision already pays the Islanders for their TV rights. What's a few more million? The Garden is already forking over $14M into revenue sharing. The NHL plans is for $240M. An extra $10 million isn't going to be a hardship. Spend money to make money.
Add up the total HHR for the year amongst all 30 teams. Calculate the increase from the prior year. Calculate the percentage contribution from each team towards the total. Each team puts their portion of the increase into the pot, which is then divided evenly among all 30 teams. Example (numbers not factual):
Last year the league had HHR of 3 billion. Next year they have HHR of 3.3 billion. That is an increase of 300 million. Toronto, Montreal and the Rangers each account for 8% of that 3.3 billion. They are each required to kick in 8% of 300 million, or 24 million. Columbus, NYI and Phoenix each account for 2% of 300 million. They each kick in 6 million.
Every team contributes their portion to come up with the 300 million, then that 300 million is divided evenly amongst all 30 teams. 10 mil to each team.
I think until the nhl startes to shed it's dead weight teams by moving them to hockey rich areas or contraction the situation will not improve.
Franchises will continue to struggle & be proped up by the NHL, some owners will spend wildly, others will be the Islanders, fan bases feel alienated & we do the dance again in 3 to 5 years.
Not a smart business model.
Revenue sharing.
The NHL doesn't have the NFL type revenue but the Green Bay Packers have been a successful franchise for the last 20 years. They also have very good management. Green Bay receives revenue sharing. Again. They have smart management. Small market team. Some of the NHL teams have stupid ownership and management. The San Antonio Spurs are a great franchise. Revenue sharing. Oklahoma City Thunder. Great young team. Their GM Sam Presti used to work for the Spurs.
The NHL needs more revenue sharing. Then it will up to those teams to make smarter decisions. The PA wants the NHL teams to share more revenue. Fehr indicated the other pieces will fall into place when Bettman gets HIS owners to share more revenue. There has to be a way. The NBC contract is worth $200M per. $6.667M per team per year. Take the share for the big market teams and put into a pool for a revenue sharing. That $6.667M is not going to break the Rangers.
The NHL doesn't have the NFL type revenue but the Green Bay Packers have been a successful franchise for the last 20 years. They also have very good management. Green Bay receives revenue sharing. Again. They have smart management. Small market team. Some of the NHL teams have stupid ownership and management. The San Antonio Spurs are a great franchise. Revenue sharing. Oklahoma City Thunder. Great young team. Their GM Sam Presti used to work for the Spurs.
The NHL needs more revenue sharing. Then it will up to those teams to make smarter decisions. The PA wants the NHL teams to share more revenue. Fehr indicated the other pieces will fall into place when Bettman gets HIS owners to share more revenue. There has to be a way. The NBC contract is worth $200M per. $6.667M per team per year. Take the share for the big market teams and put into a pool for a revenue sharing. That $6.667M is not going to break the Rangers.
No it won't, but at some point you can't keep throwing money away into a bottemless pit. 20 years after the NHL began it's over expansion & the same teams continue to hurt for money.
It's also a heartship on fans who wind up paying more for a ticket or more for hotdog & soda. Someone has to pay & it's usually the fans.
Add up the total HHR for the year amongst all 30 teams. Calculate the increase from the prior year. Calculate the percentage contribution from each team towards the total. Each team puts their portion of the increase into the pot, which is then divided evenly among all 30 teams. Example (numbers not factual):
Last year the league had HHR of 3 billion. Next year they have HHR of 3.3 billion. That is an increase of 300 million. Toronto, Montreal and the Rangers each account for 8% of that 3.3 billion. They are each required to kick in 8% of 300 million, or 24 million. Columbus, NYI and Phoenix each account for 2% of 300 million. They each kick in 6 million.
Every team contributes their portion to come up with the 300 million, then that 300 million is divided evenly amongst all 30 teams. 10 mil to each team.
It doesn't seem like $10 million will be enough for some of the smaller teams. It would be a drop in the bucket for teams like Phoniex & Buffallo. Any Devil fans reading this don't take this the wrong way. $10 million wouldn't be enough for the Devils owner right now. He would still be $10 million short in meeting his team obligations for the Rock.
Here's a look at how the salary cap and salary floor would be impacted by the current CBA along with proposals from the NHL and NHL Players' Association for the 2012-13 season:
Current system
Salary cap: $70.2 million
Salary floor: $54.2 million
NHL's proposal Salary cap: $50.8 million Salary floor: $38.8 million
NHLPA's proposal (assuming a fixed $16-million gap is kept in place)
Salary cap: $69 million
Salary floor: $53 million
The NHL proposed changing the formula. Adding $4M to the midpoint to the upper limit. Not $8M. $12M gap. $50.8M upper limit. The upper limit for 2007-08 was $50.3M. 5 years ago.
No it won't, but at some point you can't keep throwing money away into a bottemless pit. 20 years after the NHL began it's over expansion & the same teams continue to hurt for money.
It's also a heartship on fans who wind up paying more for a ticket or more for hotdog & soda. Someone has to pay & it's usually the fans.
Go tell Gary to roll back ticket prices/concession prices to 2007-08 levels considering the NHL is proposing a $50.8M upper limit. He won't do that. That's the NHL solution for big markets not willing to share revenue. Slash.
Go tell Gary to roll back ticket prices/concession prices to 2007-08 levels considering the NHL is proposing a $50.8M upper limit. He won't do that. That's the NHL solution for big markets not willing to share revenue. Slash.
That would be nice. I'd like to see pre-2005 ticket pricing.
The rangers had a $60 million dollar pay roll in 1999-2000 & the tickets were half what they are now.
Fehr is in Chicago for PA player meetings today and tomorrow. Then Fehr goes to Kelowna,BC for more player meetings. There was a NHL-NHLPA small group meeting today. They break up into small groups. High school stuff. One person takes notes. They mostly BS with each other. The person taking notes stands up in front of the class and gives their group report. CBA expires in 30 days.
it'll never happen cause bettman's legacy (aside from the most lockouts) is based on expanding the league from 24 to 30 teams and expanding the league's foothold in the US...
but the league as a whole would be so much better off if certain teams located...phoenix to quebec is one. the isles would be another, if nassau won't give them a new building then move them somewhere where they will get a new building cause they will never become profitable where they are...
basically comes down to the chain only being as strong as the weakest link
Fehr is in Chicago for PA player meetings today and tomorrow. Then Fehr goes to Kelowna,BC for more player meetings. There was a NHL-NHLPA small group meeting today. They break up into small groups. High school stuff. One person takes notes. They mostly BS with each other. The person taking notes stands up in front of the class and gives their group report. CBA expires in 30 days.
Very impressed with Fehr's entire approach to this.
I wonder how many owners Bettman has consistently met with while he throws darts at the CBA.
I don't really know much about the business side of hockey so if my question is really stupid don't make fun of me lol.
The NHL wants the new Salary Cap to be 50.8 mill. How is that even possible for teams like us with almost $30 Mill locked up into 4 players? The only way I can see us being able to ice a team is if they allow teams to restructure contracts so that our 4 players cap hit is reduced.
