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noteable details in the MOU

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Old
01-13-2013, 03:39 AM
  #1
danishh
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noteable details in the MOU

just thought i'd put something together for discussion on the new MOU/CBA.

http://nbcprohockeytalk.files.wordpr...an-12-2013.pdf

1. Term: 10 years with mutual opt-out after 8 years.

2. HRR accounting: same as previous CBA

3. Players share: 50%

4. No Rollback in book value of current contracts.
- of course escrow will lead to an effective rollback, and the 'make-whole' or 'transition payments' will mitigate that effect to a certain amount.

5. Transition payments of 300M (100M for each of 2013-14, 14-15, and 15-16) to compensate players for drop in players share.

6. Payroll range: 44-52-60 in 2013 with effective upper limit of 70.2
- 70.2 used for tagging -> important for many teams needing to re-sign RFA's to long term contracts eg habs and subban.
- 2 amnesty buyouts over 2013-14 offseason and 2014-15 offseason. Counted against the players share. Players prohibited from rejoining buying-out team for one year in any way.
- 44-54.15-64.3 in 2013-14
- -15% - (50%hrr-benefits)/30 - +15% in all other years with minimum range of 16M and maximum range of 28M.

7. New Pension Plan with defined benefits.

8. Performance bonuses do not count against lower limit (hello NYI)

9. Cap Recapture for all players with existing contracts longer than 6 years.
- any cap advantage gained during player service years to be paid over remaining length of contract when player retires.
- if a team acquires a player with such a contract, they too pay the cap recapture penalty.
- not applicable to signing team if player was traded prior to lockout.

10. Money paid to players loaned to other leagues (AHL, europe) will count against a teams cap, but not against the players share. Less (minimum salary + 375k) = 900k in year one.

11: Salary and Cap retention. Clubs may retain up to 50% salary AND cap of a player contract, for up to three players, and up to 15% of the current cap. Percentage allocation must be the same for salary and cap.

eg contract with 1yr remaining at 5M cap and 3M salary has team retaining a max of 2.5M cap and 1.5M salary. The percentage of salary and cap retained must be equal.

12: Over 35 rule remains intact as is.
-seems a bit redundant now to me, but that's just me.

13: Cap increased 10% on march 1st of 2013-14 and beyond for tagging purposes
-will help teams resign players earlier

14: ELC system stays the same
- addition of signing bonuses for 'partial' first season. Eg player who plays 8 games in first year can earn bonus in that year, as well as each of the three 'real' years.

15. Salary arbitration same as before
- but players can sign offersheets up to 1.75M (increased annually by average league salary index - starting in 2014-15) even if they are subject to club-elected arbitration.
- club walk-away rights only over 3.5M (increased annually by average league salary index - starting in 2014-15)
- clubs cannot buy-out a player with a cap hit of less than 2.75M (increased annually by average league salary - starting in 2014-15) or who was not on reserve list at last trade deadline during secondary buyout period. Prevents low-value contracts from being bought out late and prevents teams from trading for players to be bought out late.

16. Group 3 free agency (unristricted free agency) rules remain the same
- introduction of 'interview period' from the earlier of day after the draft and june 25th. UFA's can talk to teams but not sign.

17. Contract Term: 7 years, 8 years for a player on a club's reserve list at trade deadline.
- this may slightly increase trade value of FA's at trade deadline/decrease value of FA rights at the draft.

18. Variability: 35% of first year, lowest year cannot be less than 50% of highest year.
- only applies to front-loaded contracts. For back-loaded contracts, the existing 100% rule applies.

19. Re-entry waivers are eliminated
- should help prevent players being stuck in the ahl all year because teams are afraid of cap implications or losing them.

20. Mutual Disclosure: Parties tell each other everything promptly regarding contracts/loans/ato's/pto's/etc.

21. Escrow
- escrow shortfall on players side paid out of next year's players share.

22. Minimum Salary
525k 2013
550k 2013-14, 2014-15
575k 2015-16, 2016-17
650k 2017-18, 2018-19
700k 2019-20, 2020-21
750k 2021-22

23. Playoff pool
13M 2013, 2013-14
14M 2014-15, 2015-16
15M 2016-17, 2017-18
16M 2018-19, 2019-20
17M 2020-21, 2021-22
- included in player benefits (Paid out of the players share)

24. Roster Emergencies: Clubs with insufficient cap room to add players when under minimum playing roster may add player(s) without incurring a cap hit from the second game of the roster emergency to the end of the roster emergency.

25. Performance Bonus Cusion: Same as before, but applicable in every year (including at the end of the CBA/opt-out years.

26. No Move/No Trade Clauses: If team agrees, NTC/NMC applicable immediately when signing extension as long as player is currently eligible to have one (so RFA's are still SOL).

27: LTI: LTI remains the same.

more to come... probably tomorrow unless someone else wants to take a crack at it.


Last edited by danishh: 01-13-2013 at 03:06 PM.
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01-13-2013, 04:20 AM
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Only other really interesting thing I saw:

"Each Club (including the Players on the Club at the time) will be required (upon League request) to
participate in at least one (1) such international trip during the term of the CBA."

Wording is weird but I'm assuming it means that not all teams will be making a trip abroad but that teams that are asked to go abroad cannot reject the NHL's request without at least going once.

Would be cool if it was every team making an international trip though.

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01-13-2013, 04:38 AM
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disgruntleddave
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Good thing every club plays in both USA and Canada. That one is covered :p

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01-13-2013, 04:50 AM
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Quote:
Originally Posted by DevilChuk View Post
Only other really interesting thing I saw:

"Each Club (including the Players on the Club at the time) will be required (upon League request) to
participate in at least one (1) such international trip during the term of the CBA."

Wording is weird but I'm assuming it means that not all teams will be making a trip abroad but that teams that are asked to go abroad cannot reject the NHL's request without at least going once.

Would be cool if it was every team making an international trip though.
9 years x 4 teams = 36 teams, so depending on the number of teams that agree to multiple trips, i'd think it's pretty safe to say everyone is going over at some point during this CBA.

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01-13-2013, 08:36 AM
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Quote:
Originally Posted by danishh View Post
- 44-54.15-60.3 in 2013-14
44-54.15-64.3 actually (I assume a typing mistake on your part but know someone will see that and freak out. In the document, the upper limit for 13-14 is 64.3

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01-13-2013, 08:46 AM
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Quote:
Originally Posted by danishh View Post
9 years x 4 teams = 36 teams, so depending on the number of teams that agree to multiple trips, i'd think it's pretty safe to say everyone is going over at some point during this CBA.
Some teams like the leafs or the habs won't for obvious HHR reason. Unless off course they don't lose any home games. Hell if the NHL is still stuck with them next year send the Coyotes to London for their whole home season!

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01-13-2013, 09:09 AM
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Quote:
Originally Posted by DevilChuk View Post
Only other really interesting thing I saw:

"Each Club (including the Players on the Club at the time) will be required (upon League request) to
participate in at least one (1) such international trip during the term of the CBA."

Wording is weird but I'm assuming it means that not all teams will be making a trip abroad but that teams that are asked to go abroad cannot reject the NHL's request without at least going once.

Would be cool if it was every team making an international trip though.
I think this is related to some teams last CBA was speculated were able to say "no, we're not interested in going abroad" (for some reason Detroit keeps coming to mind, but I could be wrong), now they have to go when asked, you can't 'opt out' so to speak.

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01-13-2013, 09:25 AM
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Quote:
Originally Posted by Levitate View Post
44-54.15-64.3 actually (I assume a typing mistake on your part but know someone will see that and freak out. In the document, the upper limit for 13-14 is 64.3
I see that it says that in the document, but doesn't that mean the midpoint is wrong too because the midpoint is just the (lower+upper) / 2

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01-13-2013, 09:38 AM
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Quote:
Originally Posted by danishh View Post
8. Performance bonuses do not count against lower limit (hello NYI)
This combined with the fact that the salary floor will never be below 44 M through the entirety of the CBA, a floor which some teams already struggle to meet leads me to think that some of the financial problems of these clubs will continue.

Quote:
Originally Posted by danishh View Post
19. Re-entry waivers are eliminated
- should help prevent players being stuck in the ahl all year because teams are afraid of cap implications or losing them.
This is the best thing I've read. This is a very boring CBA and not worth the wait for fans because I don't see significant improvements but this is a good step in the right direction in terms of improving the on-ice product.

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01-13-2013, 10:16 AM
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Compliance buyouts must be executed during the June 15-30 buyout window (Ordinary Course Buyouts).

Also, revenue sharing is not a fixed dollar amount, but rather a percentage of revenue (6.055%).

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01-13-2013, 10:48 AM
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"New International Business Ventures"

NHL and NHLPA will work together to create and exploit other international opportunities involving NHL Players, including games, series, events or contests (e.g., World Cup of Hockey, European Champions’ League, Victoria Cup Competition, Olympic participation, etc.). All revenues from such initiatives (net of Direct Costs, including NHL and NHLPA staffing costs) shall be excluded from HRR and will be divided equally by the NHL and NHLPA.

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01-13-2013, 12:41 PM
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Point 9 - "not applicable to signing team if player was traded prior to lockout" - otherwise known as the Flyers Get out of Jail Free card.

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01-13-2013, 12:46 PM
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There's also an expanded Christmas break. December 24,25,26 and no teams can travel on any of those days. If the 26th is a Saturday the break will be 23,24,25. I think I remembered those details correctly.

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01-13-2013, 01:22 PM
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There's also an expanded Christmas break. December 24,25,26 and no teams can travel on any of those days. If the 26th is a Saturday the break will be 23,24,25. I think I remembered those details correctly.
Correct.

I dont like that. I love boxing day games. There should have just been a rule created regarding travel for boxing day games (eg. teams can only play on boxing day if their opponent is within 500 km. This way you could still have a Toronto-Buffalo, or Isles-Rangers, or Chicago-Detroit game on boxing day, but you enssure nobody is flying cross country on Christmas.)

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01-13-2013, 01:37 PM
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Originally Posted by Inkling View Post
There's also an expanded Christmas break. December 24,25,26 and no teams can travel on any of those days. If the 26th is a Saturday the break will be 23,24,25. I think I remembered those details correctly.
Good. I don't see why teams have to play on those days; let everyone spend the holidays with their families.

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01-13-2013, 02:02 PM
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Intermissions are now 18 minutes instead of 17 and on ice promotions are limited to 4 minutes instead of 5. The reason is ice quality (crews get an extra 2 minutes to clean ice), but it is an extra minute to refill on concessions.

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01-13-2013, 03:13 PM
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Quote:
Originally Posted by danishh View Post
12: Over 35 rule remains intact as is.
-seems a bit redundant now to me, but that's just me.
There are existing contracts with the 35+ rule in play, even if the new CBA reduces the potential for more of them.

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01-13-2013, 03:39 PM
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Revenue Sharing changes:

Revenue Sharing Pool and Sources:
- Revenue Sharing Pool increased to 6.055% of HRR (was 4.5% of HRR).
- Top 10 revenue teams now contribute 50% of the pool. In the last CBA the top would contribute between 25% and 50% depending on how much central revenue was generated and whether escrow refund was triggered.
- There may be additional revenue deduction rules for the top 10 teams that could affect their share of the 50% (but not affect HRR overall).
- The remaining 50% will be raised by a combination of centrally generated league revenues and a 35% flat tax on each team's playoff gate receipts.
- The 35% is a sizable change. Previously CBA teams contributed 50%, 40% or 30% of the ticket value for a sold-out regular season game (pro-rated for teams with arenas over 17,500 capacity), depending on whether they were top 10, middle 10 or bottom 10 in revenue. As playoff ticket prices are higher than regular season prices this should create a net increase in the playoff ticket revenue contribution. Also there's no mention of a 17,500 capacity pro-rated formula.

Revenue Sharing Eligibility
- Teams in a DMA over 3 million households (currently NY, LA, Chicago, Toronto) can now receive up to 50% of a full share. So the Islanders can receive revenue sharing. Previous CBA no team in a market over 2.5 million households could receive any revenue sharing.
- Minimum Team Player Compensation is redefined to be 70% of the Lower Limit. Previously it was a fixed value that increased % as HRR went up. I'd have to review the last CBA in more detail to see if this is a change and how much.
- All performance and revenue sharing reduced shares for not meeting growth or ticket thresholds are removed. (section 3)

Revenue Sharing Oversight Committee:
- New committee created "The RSOC will consist of three (3) members chosen by the NHLPA (including at least 1 Player) and four (4) members chosen by the Commissioner, including a Chairman (and also including at least 1 Owner). The Commissioner of the NHL and the Executive Director of the NHLPA shall serve as ex-officio members of the RSOC with all rights and privileges of a RSOC member, except voting rights."
- Committee has authority to review various club financial reporting, but not 100% guaranteed access to all business related books.
- Committee can vote to increase or decrease a particular team's revenue sharing distribution by up to 15%.

Industry Growth Fund
- "NHL will create a callable Industry Growth Fund providing access to capital of up to a maximum $60 million, which will be funded, where necessary, both initially and in successive years, by contributions of up to $20 million annually from centrally generated League revenues."
- Clubs not generating regular season gate revenues of at least 75% of league average are eligible for assistance from the fund. "All such Clubs will be required to submit business plans explaining the steps the Club intends to take in order to achieve an improved and acceptable level of business performance, and their continuing eligibility to receive revenue sharing funding can be conditioned on successfully executing on those plans."

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01-13-2013, 03:47 PM
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re: roster emergencies, can teams still sign guys to ATOs if they can't get a guy in from an affiliate in time for the game (i.e. injury to goalie in morning - or even worse, pre-game - skate)?

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01-13-2013, 03:49 PM
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Quote:
Originally Posted by Pilky01 View Post
Correct.

I dont like that. I love boxing day games. There should have just been a rule created regarding travel for boxing day games (eg. teams can only play on boxing day if their opponent is within 500 km. This way you could still have a Toronto-Buffalo, or Isles-Rangers, or Chicago-Detroit game on boxing day, but you enssure nobody is flying cross country on Christmas.)
Under the 2005 CBA (and before), teams had to travel on 12/26 for games that evening (never on 12/25). So, most of the time teams matched up against near rivals (~2 hours or less travel by air).

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01-13-2013, 03:55 PM
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re: roster emergencies, can teams still sign guys to ATOs if they can't get a guy in from an affiliate in time for the game (i.e. injury to goalie in morning - or even worse, pre-game - skate)?
The only mention of ATO's in the MOU is that teams will disclose financial information about them. Most likely that means they're keeping the same rules, but the MOU doesn't clarify.

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01-13-2013, 04:33 PM
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The only mention of ATO's in the MOU is that teams will disclose financial information about them. Most likely that means they're keeping the same rules, but the MOU doesn't clarify.
Isn't there no financial info to disclose as they are amateur (i.e. unpaid) contracts? Maybe they have to report the value of the game jersey if they let him keep it.

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01-13-2013, 04:36 PM
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Great so now games that are already too long are now 2 minutes longer

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01-13-2013, 06:07 PM
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Quote:
Originally Posted by mouser View Post
Revenue Sharing changes:

Revenue Sharing Pool and Sources:
- Revenue Sharing Pool increased to 6.055% of HRR (was 4.5% of HRR).
- Top 10 revenue teams now contribute 50% of the pool. In the last CBA the top would contribute between 25% and 50% depending on how much central revenue was generated and whether escrow refund was triggered.
- There may be additional revenue deduction rules for the top 10 teams that could affect their share of the 50% (but not affect HRR overall).
- The remaining 50% will be raised by a combination of centrally generated league revenues and a 35% flat tax on each team's playoff gate receipts.
- The 35% is a sizable change. Previously CBA teams contributed 50%, 40% or 30% of the ticket value for a sold-out regular season game (pro-rated for teams with arenas over 17,500 capacity), depending on whether they were top 10, middle 10 or bottom 10 in revenue. As playoff ticket prices are higher than regular season prices this should create a net increase in the playoff ticket revenue contribution. Also there's no mention of a 17,500 capacity pro-rated formula.

Revenue Sharing Eligibility
- Teams in a DMA over 3 million households (currently NY, LA, Chicago, Toronto) can now receive up to 50% of a full share. So the Islanders can receive revenue sharing. Previous CBA no team in a market over 2.5 million households could receive any revenue sharing.
- Minimum Team Player Compensation is redefined to be 70% of the Lower Limit. Previously it was a fixed value that increased % as HRR went up. I'd have to review the last CBA in more detail to see if this is a change and how much.
- All performance and revenue sharing reduced shares for not meeting growth or ticket thresholds are removed. (section 3)

Revenue Sharing Oversight Committee:
- New committee created "The RSOC will consist of three (3) members chosen by the NHLPA (including at least 1 Player) and four (4) members chosen by the Commissioner, including a Chairman (and also including at least 1 Owner). The Commissioner of the NHL and the Executive Director of the NHLPA shall serve as ex-officio members of the RSOC with all rights and privileges of a RSOC member, except voting rights."
- Committee has authority to review various club financial reporting, but not 100% guaranteed access to all business related books.
- Committee can vote to increase or decrease a particular team's revenue sharing distribution by up to 15%.

Industry Growth Fund
- "NHL will create a callable Industry Growth Fund providing access to capital of up to a maximum $60 million, which will be funded, where necessary, both initially and in successive years, by contributions of up to $20 million annually from centrally generated League revenues."
- Clubs not generating regular season gate revenues of at least 75% of league average are eligible for assistance from the fund. "All such Clubs will be required to submit business plans explaining the steps the Club intends to take in order to achieve an improved and acceptable level of business performance, and their continuing eligibility to receive revenue sharing funding can be conditioned on successfully executing on those plans."
"Revenue Sharing Eligibility
- Teams in a DMA over 3 million households (currently NY, LA, Chicago, Toronto) can now receive up to 50% of a full share. So the Islanders can receive revenue sharing. Previous CBA no team in a market over 2.5 million households could receive any revenue sharing."

So with everything being average, how much approximately would NYI receive in revenue sharing for a season?

I'm just looking for a ballpark figure as I have no idea. Heard a rumor phoenx got 15 mil in rev sharing last season?

Would NYI get rev sharing this season?

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01-13-2013, 06:19 PM
  #25
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Quote:
Originally Posted by Bert Marshall days View Post
"Revenue Sharing Eligibility
- Teams in a DMA over 3 million households (currently NY, LA, Chicago, Toronto) can now receive up to 50% of a full share. So the Islanders can receive revenue sharing. Previous CBA no team in a market over 2.5 million households could receive any revenue sharing."

So with everything being average, how much approximately would NYI receive in revenue sharing for a season?

I'm just looking for a ballpark figure as I have no idea. Heard a rumor phoenx got 15 mil in rev sharing last season?

Would NYI get rev sharing this season?
Probably something like $5m-$10m in a typical season.* Everything is pro-rated this year of course, so it would just be a portion of that.

*Also depends how much their revenue improves in Brooklyn.

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