joechip
Registered User
In all this talk about the CBA... here are some of my thoughts:
In specific I'm trying to address a couple of things I see as damaging to the competition in the NHL:
-- Owners using non-hockey money (other businesses) to buy themselves a winner.
-- Unequal local resources such as population base, local taxing burdens, etc.
IMO, there needs to be a budgeting process in place at the start of each season that is based on the previous season's revenue that seeks to provide a baseline amount for the franchise to field a decent team. Then, during the season as things change (attendance rises/falls, performance bonuses kick in, playoffs made or not) there is sufficient wiggle-room to adjust a team's budget accordingly without too much penalty.
The free spenders will still spend freely, they'll just do it at levels that are somewhat lower than today.
Comments are certainly welcome.
1) Significant revenue sharing among the teams.
-- The total of which should cover 60-75% of the "Salary Cap," defined in Point #2.
-- There needs to be an equalization of resources to create a baseline competitiveness amongst all teams.
-- Creates a budget for the NHL.
2) "Salary Cap" -- Unpenalized Player Salaries less than X% of League Revenues/30, where X is between 50-60%.
-- Will grow and shrink as NHL Revenues do.
-- Creates a budget for the individual teams.
3) Luxury tax, Progressively steeper:
for every $5 million over the level set in point #2 the tax would be:
25% on the 1st $5mill (up to $1.25 million in taxes)
40% on the 2nd $5mill (up to $3.25 million in taxes)
55% on the 3rd $5mill (up to $6.00 million in taxes)
70% on the 4th $5mill (up to $9.50 million in taxes)
85% on the 5th $5mill (up to $13.75 million in taxes)
100% on all other money spent on salaries.
-- Luxury Tax money would be counted as part of the Revenue Sharing pool, which all teams that qualify would parkate of, including the team that paid the tax (in effect a small (3.3%) rebate)
-- Still allows for teams to spend to 'win now' but has the long term consequence of making their future opponents stronger.
4) A minimum total team salary based on the amount of the Revenue Sharing Pool (~90%).
-- Ensures that no owner absconds with their RS pool
-- Protects the players.
-- Luxury Tax feeds this as well.
5) Two-Way Arbitration or in lieu of any arbitration... Non-guaranteed contracts are the norm.
-- Guaranteed Contracts, for example, are still negotiable on an individual basis.
6) Lower UFA age, 27 or 28, but Restricted FA's are qualified at 50% of current salary.
-- Qualifying offer's primary job is protecting the team's development costs
-- Should not be a player welfare system, as the current 10% raise is.
-- Gives the drafting team 9-10 yrs. of service from draftees.
-- Allows players to maximize their return while in the prime of their careers.
-- Restricted FA is still quite lucrative.
-- No more Group V FA is needed.
7) Performance Bonuses paid are considered to be a part of the Total Salary and subject to luxury tax.
-- No limit on bonuses.
-- Only counted against LT if paid.
-- Counted against Luxury Tax on a Pro-Rata basis in the case of a trade.
8) Move Trade Dealine Back to Late February (After 42-45 games played {60-65%}).
9) 72 game Season. Eliminate Inter-Conference Play, Realign From NE to SW, to equalize travel costs.
Conference #1: NYI, NJD, Pit, Phi, Was, Nsh, Clb, Car, Atl, TB, Fl, Stl, Dal, Phx, Col)
Conference #2: Bos, Buf, Mon, Tor, Ott, Det, NYR, Chi, Min, Edm, Cal, Van, LA, SJ, Ana)
-- All Canadian Teams in the same conference, all original 6 in same conference.
-- Rekindle old rivalries... lose others.
10) Move the nets back 2 feet and widen the blue lines to 3 feet.
-- Do not remove red line.
11) Remove the point for the overtime loss, still play 4 on 4 in OT.
Let's plug in some numbers:
IF
NHL Revenue = $1.5 Billion or $50 million Mean Team Revenue
'Salary Cap' = 60% of $1.5 bill/30 = $30 million
'Revenue Sharing Pool' = 60% of $30 million = $18 million
-- RSP equals 36% of Mean Team Revenue.
'Salary Floor' = $16.2 million
1 - $35 million payroll will generate $41.7K/team in Revenue Sharing
1 - $40 million payroll will generate $108k/team in RS
1 - $45 million payroll will generate $200k/Team in RS
1 - $50 million payroll will generate $317k/team in RS
The point of the Luxury tax is to leave intact the owners who want to use non-hockey revenue (I.e. revenue
from other businesses... Little Caeser's, Wal-Mart, Cablevision, etc.) to fund their hockey operations.
The players should benefit from this and the owners who want to do so still can while at the same time
strengthening the bottom line of their competitors, who are freer to upgrade their scouting or training depts,
for example.
Point #5: 2-way arbitration or allowing for non-guaranteed contracts.
-- It's important that a guaranteed contract should be bargained for individually, and it rewards those players that are diligent and show up night in/night out, year in/year out by not having to bargain under the auspice of the 'guarantee' if they don't want to.
-- This along with the much lower UFA age should ensure the players getting the most out of their careers.
Things I don't know enough about to make proposals for:
Rookie Salaries... Personally, I don't think there should be a 'rookie cap' but
Waiver requirements
Well.... comments?
Ta,
In specific I'm trying to address a couple of things I see as damaging to the competition in the NHL:
-- Owners using non-hockey money (other businesses) to buy themselves a winner.
-- Unequal local resources such as population base, local taxing burdens, etc.
IMO, there needs to be a budgeting process in place at the start of each season that is based on the previous season's revenue that seeks to provide a baseline amount for the franchise to field a decent team. Then, during the season as things change (attendance rises/falls, performance bonuses kick in, playoffs made or not) there is sufficient wiggle-room to adjust a team's budget accordingly without too much penalty.
The free spenders will still spend freely, they'll just do it at levels that are somewhat lower than today.
Comments are certainly welcome.
1) Significant revenue sharing among the teams.
-- The total of which should cover 60-75% of the "Salary Cap," defined in Point #2.
-- There needs to be an equalization of resources to create a baseline competitiveness amongst all teams.
-- Creates a budget for the NHL.
2) "Salary Cap" -- Unpenalized Player Salaries less than X% of League Revenues/30, where X is between 50-60%.
-- Will grow and shrink as NHL Revenues do.
-- Creates a budget for the individual teams.
3) Luxury tax, Progressively steeper:
for every $5 million over the level set in point #2 the tax would be:
25% on the 1st $5mill (up to $1.25 million in taxes)
40% on the 2nd $5mill (up to $3.25 million in taxes)
55% on the 3rd $5mill (up to $6.00 million in taxes)
70% on the 4th $5mill (up to $9.50 million in taxes)
85% on the 5th $5mill (up to $13.75 million in taxes)
100% on all other money spent on salaries.
-- Luxury Tax money would be counted as part of the Revenue Sharing pool, which all teams that qualify would parkate of, including the team that paid the tax (in effect a small (3.3%) rebate)
-- Still allows for teams to spend to 'win now' but has the long term consequence of making their future opponents stronger.
4) A minimum total team salary based on the amount of the Revenue Sharing Pool (~90%).
-- Ensures that no owner absconds with their RS pool
-- Protects the players.
-- Luxury Tax feeds this as well.
5) Two-Way Arbitration or in lieu of any arbitration... Non-guaranteed contracts are the norm.
-- Guaranteed Contracts, for example, are still negotiable on an individual basis.
6) Lower UFA age, 27 or 28, but Restricted FA's are qualified at 50% of current salary.
-- Qualifying offer's primary job is protecting the team's development costs
-- Should not be a player welfare system, as the current 10% raise is.
-- Gives the drafting team 9-10 yrs. of service from draftees.
-- Allows players to maximize their return while in the prime of their careers.
-- Restricted FA is still quite lucrative.
-- No more Group V FA is needed.
7) Performance Bonuses paid are considered to be a part of the Total Salary and subject to luxury tax.
-- No limit on bonuses.
-- Only counted against LT if paid.
-- Counted against Luxury Tax on a Pro-Rata basis in the case of a trade.
8) Move Trade Dealine Back to Late February (After 42-45 games played {60-65%}).
9) 72 game Season. Eliminate Inter-Conference Play, Realign From NE to SW, to equalize travel costs.
Conference #1: NYI, NJD, Pit, Phi, Was, Nsh, Clb, Car, Atl, TB, Fl, Stl, Dal, Phx, Col)
Conference #2: Bos, Buf, Mon, Tor, Ott, Det, NYR, Chi, Min, Edm, Cal, Van, LA, SJ, Ana)
-- All Canadian Teams in the same conference, all original 6 in same conference.
-- Rekindle old rivalries... lose others.
10) Move the nets back 2 feet and widen the blue lines to 3 feet.
-- Do not remove red line.
11) Remove the point for the overtime loss, still play 4 on 4 in OT.
Let's plug in some numbers:
IF
NHL Revenue = $1.5 Billion or $50 million Mean Team Revenue
'Salary Cap' = 60% of $1.5 bill/30 = $30 million
'Revenue Sharing Pool' = 60% of $30 million = $18 million
-- RSP equals 36% of Mean Team Revenue.
'Salary Floor' = $16.2 million
1 - $35 million payroll will generate $41.7K/team in Revenue Sharing
1 - $40 million payroll will generate $108k/team in RS
1 - $45 million payroll will generate $200k/Team in RS
1 - $50 million payroll will generate $317k/team in RS
The point of the Luxury tax is to leave intact the owners who want to use non-hockey revenue (I.e. revenue
from other businesses... Little Caeser's, Wal-Mart, Cablevision, etc.) to fund their hockey operations.
The players should benefit from this and the owners who want to do so still can while at the same time
strengthening the bottom line of their competitors, who are freer to upgrade their scouting or training depts,
for example.
Point #5: 2-way arbitration or allowing for non-guaranteed contracts.
-- It's important that a guaranteed contract should be bargained for individually, and it rewards those players that are diligent and show up night in/night out, year in/year out by not having to bargain under the auspice of the 'guarantee' if they don't want to.
-- This along with the much lower UFA age should ensure the players getting the most out of their careers.
Things I don't know enough about to make proposals for:
Rookie Salaries... Personally, I don't think there should be a 'rookie cap' but
Waiver requirements
Well.... comments?
Ta,