No Rollback; Players' Share "Make Whole" Provision
The NHL is not proposing that current SPCs be reduced, re-written or rolled back. Instead, the NHL's proposal retains all current Players' SPCs at their current face value for the duration of their terms, subject to the operation of the escrow mechanism in the same manner as it has worked under the expired CBA. (In other words, under the expired CBA, the compensation a Player received each year was either higher or lower than the face value of his contract depending upon Club-Player contracting levels and the level and growth rate of HRR.) Under the expired CBA, in two of the seven years Players were paid in excess of the face values of their SPCs and in five of those years they received less than their face values. That process would remain intact under the new CBA.
Under our "make whole" proposal, which is premised upon a 5% anticipated growth of HRR both this year and in future years, every Player will be paid compensation based on the full value of the Players' Share under which his current SPC was signed.
In order to effectively transition from a Players' Share of 57 percent to 50 percent, including importantly to protect Players' current SPCs against an absolute reduction in Players' Share dollars, the new Agreement contemplates, in its initial years, a "make whole" mechanism that will effectively pay each Player currently under contract the difference between 50% of Actual HRR in 2012/13 and 57% of HRR in 2011/12 -- which was $1.883 Billion.
Again, premised upon an assumed 5% growth rate between 2011/12 and 2012/13, the "make whole" amount is calculated to be a maximum of $149 million for the 2012/13 season ($1.883 Billion minus $1.734 Billion (57% multiplied by $3.303 Billion minus 50% multiplied by $3.468 Billion). Similarly, utilizing that formula and our 5% growth projections, the "make whole" amount is calculated to be a maximum of $62 million for the 2013/14 season.
To accomplish the "make whole," each Players' pro-rata "make whole" will be determined for the first two years of the Agreement and will be paid to each Player as a Deferred Compensation benefit over the life of the Player's existing SPC. For those Players whose contracts expire after the 2012/13 season, the benefit will be paid when final HRR is determined for this season (in October/November 2013). Player "make whole" payments will be accrued and paid for by the League, and will be chargeable against Players' Share amounts in future years as Preliminary Benefits.
The "make whole" obligation will be operational only through the 2013/14 season because, beginning in Year 3, the projected growth in League-wide revenues should have resulted in an increase in absolute Players' Share dollars (in excess of the Players' Share of $1.883 Billion in 2011/12). This will effectively restore "full value" to all existing SPCs without any continuing need for a "make whole."
We note in regard to this proposal, that while the NHLPA's August 14 proposal was premised upon a 7% annual growth rate in HRR, we instead used the more conservative growth rate of 5%, consistent with our prior proposals. If the NHLPA's estimate of revenue growth is more accurate, then the amount of money needed to effectuate a "make whole" would actually be less.
Do you understand the buy-out clause of the new cba? Help please :)
I see that there is a buy-out related to the new CBA, is this going to be a yearly option? Or how does it change the buy-out structure that was previously in place. Thanks in advance
It would be stupid not to buy him out, I'm more then sure the team is aware of this.
And our management is.....????
They still love the guy. They made him captain. The only thing worse for a team to make a huge mistake on a guy like Horcoff is admitting you are wrong and this front office won't want to do that. They will buy out guys like Belanger and Eager on the last years of their deals and keep Horcoff.
This is a group that over-debates and over-analyzes. Whether or not they make good decisions, they put time into coming to their decisions. I feel they will buyout Horcoff because of his last year, which conflicts with RNH, Schultz and Petry's extensions.
I have confidence, at least, that they are putting their faith and money in the future of the club.
They still love the guy. They made him captain. The only thing worse for a team to make a huge mistake on a guy like Horcoff is admitting you are wrong and this front office won't want to do that. They will buy out guys like Belanger and Eager on the last years of their deals and keep Horcoff.
Ok then, because they don't treat him like fans do? They will buy him out, it's the only logically thing to do with a guy over paid by that much.
They won't buy out Belanger, because his contract is hardly detrimental and Eager actually brings something unique to the team.
Horcoff is grossly overpaid and terrible, you have buy him out.
At $60M I think Horcoff may well have been gone. At $64.3 I doubt they do unless he is just awful this year.
We don't know the rules yet, but if the buyouts can be used in either the 2013 or 2104 offseason as some have speculated, it is possible they buy him out in 2014. That said I doubt that the buyouts will extend to the second year.
Correct me if I am wrong but are teams allowed to use their buyouts either this summer OR next summer?
No point in buying out Horcoff unless they trade for a 3rd line center is found...at 64.3M we will be right around the cap next year with Horcoff. As much as we all hate him right now hes better than having Belanger as our 3rd line center.
I believe the compliance buyout allows for 2 buyouts in total, they can happen after this season or after the next. I guess we will see how Horcoff performs in a 48/50 game season. You would have to think he suspects his job might be on the line. I wonder how his play will be in response. Basically like playing for a spot on the team next year.
Although I imagine there are a few players who wouldn't mind getting bought out. Make 2/3rd (I think) of the salary still owed to you and free to sign elsewhere. You could have guys getting bought out and then making more money the next year then they would have otherwise made.
Correct me if I am wrong but are teams allowed to use their buyouts either this summer OR next summer?
No point in buying out Horcoff unless they trade for a 3rd line center is found...at 64.3M we will be right around the cap next year with Horcoff. As much as we all hate him right now hes better than having Belanger as our 3rd line center.
yeah, i've heard the same things, that the buyouts are available in summer of 2013 and summer of 2014, with a limit of 2 total
He is one of THE worst player's on the ice over the last 5+ years. Might be because he faces tough opponents, doesn't matter he is getting paid first line money so he should be facing tough opponents... and helping us win not lose.
After that mini rant. I would be pleasently surprised if managment actualy bought him out. Oilers are weak on centers. For some reason they love Horcoff. Actually replaceing Horcoff will be tough. Not to mention that the rest of the Oilers centers are just as bad and could use replaceing as well. He also is in the financialy freindly portion of his contract. They paid the most for his worst years and hopefuly he turns it around.
dream Belanger returns to form and makes Horcoff redundant. I also hope we trade for a true 2nd line center with size, and a 4th line center with grit.
For next year.
RNH
???
Bel if returns to form
???
Everyone also needs to remember we are stuck with Horcoff for one more year no matter what :-( Buyouts not till summer.
