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06-30-2006, 11:21 AM
  #1
Agalloch
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Jagr

Hey guys,

Just a question about Jagr's contract. Sorry if it has been asked before, but because he was making more than the individual player max before the CBA, they lowered his contract to the last year max.

Now, the max is up to 8.8 millions (right?), so I guess his contract will go to 8.8 also ? Maybe I'm wrong there, I just want to know...

Thanks!

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06-30-2006, 03:20 PM
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crashlanding
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Quote:
Originally Posted by st4ticx
Hey guys,

Just a question about Jagr's contract. Sorry if it has been asked before, but because he was making more than the individual player max before the CBA, they lowered his contract to the last year max.

Now, the max is up to 8.8 millions (right?), so I guess his contract will go to 8.8 also ? Maybe I'm wrong there, I just want to know...

Thanks!
Good question. The NHL seemed to make things up as they went with regards to Jagr's contract. I really think it comes down to whether he makes a stink about it or what. He probably won't though because of the amount of crap he'd take for what would amount to about a million dollars.

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06-30-2006, 08:38 PM
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Sens Rule
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Pretty sure Jagr was making more than the max this year. Because of the split of Washington and NY paying parts of his salary he was just rolled back 24% and even though that was over 7.8 million he got like 8.4 or 8.6 or something. I think that there were a couple of players who were rolled back more than 24% maybe. Possibly Yashin, Tkachuk? There was at least one player I am pretty sure.

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07-07-2006, 02:06 AM
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gooseman
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I believe Jagr got some special dispensation on his due to some of the wording of his contract and the split pay issue, but there were players that took more than a 24% rollback as they were still over max. The CBA is actually very explicit about the max issue. If cap lowers, max players get reduced. If cap goes back up, their salaries do not go back up. I initially thought this was going to be a grievance type issue until I got to see the wording in the CBA, and as it was signed, it is very clear. I think the only claim the players would have would be to prove that the league manipulated numbers in order to temporarily lower cap to trim max players salaries.

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07-07-2006, 03:10 AM
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kdb209
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Quote:
Originally Posted by gooseman View Post
I believe Jagr got some special dispensation on his due to some of the wording of his contract and the split pay issue, but there were players that took more than a 24% rollback as they were still over max. The CBA is actually very explicit about the max issue. If cap lowers, max players get reduced. If cap goes back up, their salaries do not go back up. I initially thought this was going to be a grievance type issue until I got to see the wording in the CBA, and as it was signed, it is very clear. I think the only claim the players would have would be to prove that the league manipulated numbers in order to temporarily lower cap to trim max players salaries.
Wrong. Max salary players DO NOT have their salary reduced if the cap goes down.

Quote:
50.6 Maximum Player Salary and Bonuses; Fixed Dollar Amount of Player Salary.

(a) No SPC may provide for a total aggregate Player Salary and Bonuses that is in excess of twenty (20) percent of the Upper Limit for any League Year (the "Maximum Player Salary and Bonuses"). For a Player signing a multi-year SPC pursuant to which he receives the Maximum Player Salary and Bonuses in any League Year during the term of such SPC, the Maximum Player Salary and Bonuses for every League Year covered by the multi-year SPC shall be based upon the Upper Limit at the time the SPC was signed.

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07-07-2006, 07:56 AM
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abev
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Quote:
Originally Posted by crashlanding View Post
Good question. The NHL seemed to make things up as they went with regards to Jagr's contract.
Either that or it was done before the new CBA. Not after when everyone knew what the rules were and still got it wrong.

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07-07-2006, 09:08 AM
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My understanding is that when the rollback took place, everyone's salaries for '05-06 and future years dropped 24% with those who'd end up under $450K going to that figure and everyone who'd still be above $7.8M going to that figure. Jagr may have been the only one, Tkachuk, Yashin and Lidstrom were at $10M each.

Since the Capitals were picking up part of Jagr's salary, the Rangers were only charged for the part they actually pay (hence the $4.94M cap hit for him) but the Caps were not charged for the part they are paying (following the clause in the CBA prohibiting this practice). This allowed him to collect the part from Washington free and clear and thus is salary is $8.36M.

If there were any other players in such an arrangement (one team picks up part of a player's salary on another team), it was grandfathered in without the former team taking a cap hit.

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07-07-2006, 02:20 PM
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kdb209
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Quote:
Originally Posted by crashlanding
Good question. The NHL seemed to make things up as they went with regards to Jagr's contract.
Nope. It was all covered in the CBA and attached exhibits.

Washington's portion of Jagr's salary does not count against the team cap, but does count against the 54% players share.
Quote:
EXHIBIT 16
COMPLIANCE RULES FOR THE 2005-06 LEAGUE YEAR AND SUBSEQUENT LEAGUE YEARS
16. Prior Player Transactions Involving Cash Reimbursement.

To the extent a Club agreed, in connection with a Player transaction (e.g. a Trade or Waiver claim) entered into prior to the date of the Agreement, to reimburse a Club for all or a portion of a Player's Salary, the amount of money being so reimbursed shall not be included in calculating the Upper Limit of the Club which is obligated to make such reimbursement payments, but the Player's total Paragraph 1 NHL Salary and Bonuses shall be included in the Players' Share.
Quote:
Originally Posted by Irish Blues View Post
My understanding is that when the rollback took place, everyone's salaries for '05-06 and future years dropped 24% with those who'd end up under $450K going to that figure and everyone who'd still be above $7.8M going to that figure. Jagr may have been the only one, Tkachuk, Yashin and Lidstrom were at $10M each.

Since the Capitals were picking up part of Jagr's salary, the Rangers were only charged for the part they actually pay (hence the $4.94M cap hit for him) but the Caps were not charged for the part they are paying (following the clause in the CBA prohibiting this practice). This allowed him to collect the part from Washington free and clear and thus is salary is $8.36M.

If there were any other players in such an arrangement (one team picks up part of a player's salary on another team), it was grandfathered in without the former team taking a cap hit.
By my reading of the CBA (and the all important transition/complience Exhibit 16) I actually don't see any mechanism for reducing a pre-CBA salary to the Maximum Player Salary ($7.8M for the $39M '05-'06 Upper Limit), other than the standard accross the board 24% rollback.

I beleive Jagr would have been the only player affected by that - all other players (Tkachuk, Lidstrom, Yashin, etc) were below the Maximum Player Salary after the 24% Rollback.

Article 16 covers in detail making existing contracts comply with the new Minimum Player Salary (including the effects of the rollback), but makes no mention at all of the Maximum Player Salary, which seems a surprising oversight, given the other level of detail in transition corner cases in Exhibit 16.

Upon further reading, I guess the additional rollback to Max Salary could be construed from several disparate clauses in the CBA:

Quote:
ARTICLE 11
Rules and Procedures Governing Standard Player's Contract

11.11 Conformity. All SPCs signed prior to the Effective Date and in effect during the term hereof shall be deemed amended in such a manner to require the parties to comply with the terms of this Agreement, the Compliance Rules attached as Exhibit 16 and the SPC.
Quote:
50.6 Maximum Player Salary and Bonuses; Fixed Dollar Amount of Player Salary.

(a) No SPC may provide for a total aggregate Player Salary and Bonuses that is in excess of twenty (20) percent of the Upper Limit for any League Year (the "Maximum Player Salary and Bonuses"). For a Player signing a multi-year SPC pursuant to which he receives the Maximum Player Salary and Bonuses in any League Year during the term of such SPC, the Maximum Player Salary and Bonuses for every League Year covered by the multi-year SPC shall be based upon the Upper Limit at the time the SPC was signed.
Since Jagr's multi-year SPC wasn't signed under this CBA ("For a Player signing a multi-year SPC pursuant...") , I'm assuming the "shall be based upon the Upper Limit at the time the SPC was signed" clause is meaningless.

This (in conjunction with 11.11) could be read as to reduce Jagr's salary to the Maximum Player Salary, but another clause (50.5 (d)(ii)) suggests the opposite:

Quote:
(ii) "Averaged Amount." For any multi-year SPC, for purposes of calculating the Club's Averaged Club Salary in any League Year, the Averaged Amount of such SPC shall be used. That is, the Player Salary and Bonuses for all League Years shall be "averaged" over the length of the entire term of the SPC, using the stated amount, by dividing the aggregate stated amount of all Player Salary and Bonuses to be paid during the term of the SPC by the number of League Years in the SPC (see Illustrations #1 and #2 below).
(A) For any SPC entered into prior to the execution of this Agreement in which multiple years still remain, the Player Salary and Bonuses (except for traditional on-ice Performance Bonuses) as well as the face amount of any vested option, the face amount resultant from a salary revision, a salary or bonus guarantee, or other such compensatory provision in such 1995 Standard Player Contract due to be paid or earned over the remainder of such 1995 Standard Player Contract shall be averaged over the remaining length of the SPC (including any applicable vested option years, salary revisions or guarantees), for purposes of calculating the Averaged Club Salary of the Club that is party to the SPC on a going-forward basis (see Illustration #3 below).

(B) Notwithstanding the "averaging" provisions, in no League Year of an SPC entered into following the execution of this Agreement may the Player Salary and Bonuses exceed the Maximum Player Salary and Bonuses, as set forth in Section 50.6, at the time the SPC is signed (see Illustration #4 below).
Note that 50.5(d)(ii) explicitly calls out the Maximum Player Salary limit in (B) for "an SPC entered into following the execution of this Agreement", but (A) is silent on this point for "any SPC entered into prior to the execution of this Agreement".

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