The Business of HockeyDiscuss the financial and business aspects of the NHL. Franchise sales, valuations, TV contracts, ratings, expansion, relocation, the CBA and work stoppage discussion goes here.
Players and Owners reach an agreement (MOD: circa 5am ET 1/6/13)
I'm sure NBC put pressure on the league, but I highly doubt they made any threats.
Considering the awful numbers that came out for NBCSN, they've made it painfully obvious that if they want their sports network to go anywhere, they need the NHL.
8 to 10 year cba should send a clear message to sponsors and fans alike that both the players and the owners want longterm labour peace.
Frustrated and angry fans may boycott for a little while but 8 years minimum is a long time for wounds to be healed. If there is a widespread cold shoulder it may serve as an impetus to extend the agreement rather than excercise their optouts but that would be about it.
No, any year can't be less than 50% of first year.
Are you sure?
If it's only the first year that is the benchmark, what is to stop them from doing contracts like 1M 12M 1M 1M 1M 1M 1M? 6.5 avg in first 2 years with a cap hit of around 2.6M. Basically a 2 year retirement contract.
Is there still a cap re-capture element? Do all contracts apply even if the guy retires?
I'm sure NBC put pressure on the league, but I highly doubt they made any threats.
Considering the awful numbers that came out for NBCSN, they've made it painfully obvious that if they want their sports network to go anywhere, they need the NHL.
Can't disagree NBCSN would like their ratings climb, however being in business with a league they can't rely on, at a cost of $200M/year, doesn't fix the ratings.
As well other major sponsors have made their displeasure known publicly, some even suggesting they will be looking for compensation.
With all due respect, I think it would be naive to believe sponsor pressure had nothing to do with the NHL's decision to negotiate a deal.
Nick Kypreos reports this AM, told possible reason CBA deal, Bettman under intense pressure from major sponsors. Sponsors nervous investing again in "devalued product"
If it's only the first year that is the benchmark, what is to stop them from doing contracts like 1M 12M 1M 1M 1M 1M 1M? 6.5 avg in first 2 years with a cap hit of around 2.6M. Basically a 2 year retirement contract.
Is there still a cap re-capture element? Do all contracts apply even if the guy retires?
If it's only the first year that is the benchmark, what is to stop them from doing contracts like 1M 12M 1M 1M 1M 1M 1M? 6.5 avg in first 2 years with a cap hit of around 2.6M. Basically a 2 year retirement contract.
Is there still a cap re-capture element? Do all contracts apply even if the guy retires?
Because there's also 35% variance y-o-y.
If first year is 1M, the next season can be only 1.35M etc.
Can't see it lasting 10 years, I am sure someone will break at 8. But 8 years of guaranteed hockey is good for me.
Without researching it I think history shows that optouts are rare. Best case scenario would be the full 10 years with negotiations beginning after both sides extend but the league and sports industry landscape could look wildly different a decade from now so who knows.
Holdurbreathe, what's that $60M players fund about?
The players wanted a growth fund as part of RS, to assist teams in new or less conventional hockey markets, however it seemed to gain little traction with the NHL.
So I was surprised when Dreger reported, "confirming revenue sharing will spread $200 million. Additionally, $60 mil PA initiated growth fund also included."
I have no detailed info on how this growth fund will function (funding, allocation, etc.).
Last edited by Holdurbreathe: 01-06-2013 at 06:31 AM.
