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Hypothetical Question regarding a player strike

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12-12-2012, 09:53 PM
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Krishna
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Hypothetical Question regarding a player strike

If the NHL and PA agreed in the beginning of the season to play under the old CBA without signing anything, how would a player strike in mid april work?

If the players went on strike in mid april after receiving almost all of their salary and their strike caused the playoffs to be cancelled, what would happen to the actual revenue numbers?

Using last year's numbers :

The 57% was about 1.881b for the players with a cap around 64.3m

If the players went on strike and caused the revenue from the playoffs to be lost, they would easily be well over the 57%. What would happen to the money? Would they have to give it back to the owners to even up immediately? Would it be returned upon completetion of a new CBA? Or would it pretty much be forgotten?

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12-12-2012, 10:41 PM
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CerebralGenesis
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Players paying owners? sign me up

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12-12-2012, 11:03 PM
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I think it's a moot point, because of what happened with the MLB in 1994, we will never see such a scenario again; Any league would not start a season with the players having the ability to strike; from now on every time a CBA expires in sports you will either see the two sides agree to a one year extension prior to the year starting or a lockout.

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12-12-2012, 11:05 PM
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Quote:
Originally Posted by Krishna View Post
If the NHL and PA agreed in the beginning of the season to play under the old CBA without signing anything, how would a player strike in mid april work?

If the players went on strike in mid april after receiving almost all of their salary and their strike caused the playoffs to be cancelled, what would happen to the actual revenue numbers?

Using last year's numbers :

The 57% was about 1.881b for the players with a cap around 64.3m

If the players went on strike and caused the revenue from the playoffs to be lost, they would easily be well over the 57%. What would happen to the money? Would they have to give it back to the owners to even up immediately? Would it be returned upon completetion of a new CBA? Or would it pretty much be forgotten?
The NHL projects revenue throughout the season, and the escrow rate can slide up or down. I believe it's recalibrated quarterly.

The money sitting in escrow would not be dispensed until the final league numbers were audited, which customarily is finalized by October of the following season.

If the NHLPA still owed the owners more money than was sitting in escrow, they indeed would need to come up with the difference.

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12-12-2012, 11:50 PM
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mouser
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I suspect the money would remain in escrow until the NHL and NHLPA agreed on how to disperse it.

The OP question assumes a legal strike by the PA. So the CBA rules regarding the escrow funds, player share of HRR, and most everything else would not be in effect.

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12-13-2012, 12:12 AM
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Fugu
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Quote:
Originally Posted by mouser View Post
I suspect the money would remain in escrow until the NHL and NHLPA agreed on how to disperse it.

The OP question assumes a legal strike by the PA. So the CBA rules regarding the escrow funds, player share of HRR, and most everything else would not be in effect.

Is his hypothetical situation even possible?

I know you know, but will point out that the escrow fund was cleared out this October after both sides signed off on the numbers.

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12-13-2012, 02:21 AM
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kdb209
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My guess is that the mechanisms of the expired CBA would still be in effect.

The NHL would issue it's Preliminary & Final HRR report as usual - excluding the revenues from the cancelled playoffs.

The Preliminary HRR Report would be used to calculate a hypothetical reduced cap for the following season.

The Final HRR Report would be used to calculate the Players Share and escrow for the strike shortened season - with the players giving back through escrow due to the reduced HRR. It is possible/likely that the owners would keep all the collected Escrow and the players would have to make add'l payments back to the owners.

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12-13-2012, 04:23 PM
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leeaf83
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Quote:
Originally Posted by Fugu View Post
Is his hypothetical situation even possible?

I know you know, but will point out that the escrow fund was cleared out this October after both sides signed off on the numbers.
Possible but as mentioned above, wouldn't happen.

Even under the current (or now previous situation); it was well known the players were more than happy with the last CBA and would have willingly extended it no problem. Let's say the owners didn't want to have a lockout and so decided to start the season playing off of the last CBA without any non-strike agreement with the players; Fehr would have done something similar to his baseball trick; waited til March and basically threatened the owners "we extend the previous CBA by 4 years or we strike now"; It would hurt the players but not significantly as they don't get paid a lot in the playoffs but would hurt the owners big time losing the playoff revenue.

That is why they will never be in that situation; if the owners are willing to play the season and negotiate on the go, they will only do that if the players agree not to strike. You think fans are mad now, imagine playing 80% of the regular season and then nixing the rest? You could argue that the beginning of the end of the Montreal Expos was them having their first place season nixed.

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