Contacts Question (AHL/ECHL)

[Growlers]

I have a question about how contracts work. I'm a Newfoundland Growlers fan, We have 2 players signed so far on ECHL contracts.

From what I understand any players on ECHL contracts are paid for by the Growlers.

Any players on AHL contacts assigned to the Growlers are paid for by the Marlies

Is that correct?

Also when we used to have an AHL team. The St. John's IceCaps and players under AHL contracts. Was that paid for by the parent team or the owner of the IceCaps (Danny Williams?

I am wondering how the cost to run the ECHL team is different then running the AHL team, If a large number of contacts are AHL and paid for by the Marlies (which seems to be around 12 players so far) that means the cost for local ownership is considerably lower.

Click to read more...

 

[210]

The first $525* of an assigned player's contract is paid by the ECHL team and the rest is the responsibility of the assigning team. If the player is the property of the ECHL team they pay everything.

*That was last season's number, I'm not sure if it remains the same in the new ECHL CBA.

 

[Growler]

Also when we used to have an AHL team. The St. John's IceCaps and players under AHL contracts. Was that paid for by the parent team or the owner of the IceCaps (Danny Williams?

I am wondering how the cost to run the ECHL team is different then running the AHL team, If a large number of contacts are AHL and paid for by the Marlies (which seems to be around 12 players so far) that means the cost for local ownership is considerably lower.

If an AHL team is independent, they pay the AHL contract value in full.

In general, the CBA between NHL/AHL and AHL/ECHL is very similar in terms of 2 ways, who pays what etc. Yes, the Leafs/Marlies are going to shouldering a large amount of the cost for the Growlers payroll, no doubt. I don't think the ECHL could be successful in St. Johns otherwise. But it serves the Leafs interests too -- they want more prospects and to control their development. The additional payroll costs to MLSE is a rounding error.

I'm sure the Growlers are primarily interested in finding players who are fan favorites and ideally local boys - and will pay their salaries gladly.

 

[Growlers]

If an AHL team is independent, they pay the AHL contract value in full.

In general, the CBA between NHL/AHL and AHL/ECHL is very similar in terms of 2 ways, who pays what etc. Yes, the Leafs/Marlies are going to shouldering a large amount of the cost for the Growlers payroll, no doubt. I don't think the ECHL could be successful in St. Johns otherwise. But it serves the Leafs interests too -- they want more prospects and to control their development. The additional payroll costs to MLSE is a rounding error.

I'm sure the Growlers are primarily interested in finding players who are fan favorites and ideally local boys - and will pay their salaries gladly.

So the costs should be considerably lower than when AHL was here?

 

[210]

ECHL teams have a lot of expenses that AHL teams don't...player housing, health and worker's comp insurance, and equipment costs are just a few.

While an ECHL franchise is indeed cheaper to run, it's a lot closer to the cost of an AHL franchise than people think.

 

[Growler]

ECHL teams have a lot of expenses that AHL teams don't...player housing, health and worker's comp insurance, and equipment costs are just a few.

While an ECHL franchise is indeed cheaper to run, it's a lot closer to the cost of an AHL franchise than people think.

Really? I didn't know that.

 

[royals119]

Really? I didn't know that.

Yup. ECHL teams are required to provide a furnished apartment with all utilities. That means at a minimum some furniture, cable TV, electric, and heat. Most teams also provide internet service. Many teams also have a booster club that provides additional furnishings such as dishes, pots and pans, small appliances, bedding, towels, etc. Our booster club in Reading tries to provide everything a player might need aside from his clothing and personal care items. The guys on higher level contracts don't need it so much, but it is convenient for them if they are being moved up and down from the AHL that they don't have to maintain two apartments, and don't have to bring everything with them. For the guys on ECHL contracts it can be a big help, especially to start the season, since they don't get paid for training camp. Not having to spend several hundred bucks on apartment supplies that you will end up leaving behind when you get called up, traded, or released can mean a lot to some players.

The insurance and equipment costs are one of the advantages of having a single AA league with teams across most of the continent. People often advocate on these boards that the ECHL should split in two, but that would increase the insurance costs, and reduce the sponsorship deals that the league is able to negotiate for pucks, sticks, tape, etc.

 

[Jackets Woodchuck]

ECHL teams have a lot of expenses that AHL teams don't...player housing, health and worker's comp insurance, and equipment costs are just a few.

While an ECHL franchise is indeed cheaper to run, it's a lot closer to the cost of an AHL franchise than people think.

How much of those costs can be eliminated/reduced by bartering advertising/sponsorship?

 

[210]

How much of those costs can be eliminated/reduced by bartering advertising/sponsorship?

Somewhere between none of it and all of it. To get an accurate answer you'd have to talk to a few of the ECHL teams.