Every season self-adjusting rollback/rollup plan

Discussion in 'Fugu's Business of Hockey Forum' started by officeglen, Dec 16, 2004.

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  1. officeglen

    officeglen Registered User

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    Not sure if this wacky idea has been thrown in and out of the boards yet. Here it is:

    Determine total revenue of previous year, total labor/player costs, and % of revenue allocated to labor/player costs. If more than 60%, rollback player salaries 5% for all existing player contracts. If less than 50%, rollup player salaries 5% for all existing player contracts. If between 50% and 60% let the market prevail. This would occur every season, so if players are getting 62% one season, then 5% rollback occurs, and if still over 60% next season, another 5% rollback happens. If more than 60%, allow no salary arbitration for upcoming season, and otherwise have limited arbitration. If less than 50%, have 110% of current salary required for qualifying offer, and if more than 60% have 95% required for qualifying offer, and otherwise require 100%.

    Start with 24% rollback this season to bring player salaries into about the 55% range.

    Have eyes go blurry from all the %s in this plan.
     
  2. BLONG7

    BLONG7 Registered User

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    Some great ideas, but the PA just doesn't get it...tying salaries to revenue which makes sense, is a non starter for Knob Goodenow and Saskin Robbins...
     
  3. I'm neutral in this worm wrestle, but I can see the NHLPA's position in this suggestion --- I wouldn't trust the owners to be truthful in their revenue/expense claims.
     
  4. Bring Back Bucky

    Bring Back Bucky Registered User

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    Nice idea, but as mentioned, it requires too much forensic accounting in an environment where trust is such a serious issue.

    One annual roll-up plan which works big-time is Timmy's Roll Up the Rim to Win. I never win anything, but vehicles have been won twice here in our sleepy little hamlet......
     
  5. hockeytown9321

    hockeytown9321 Registered User

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    But if there's a hard cap set a certain % of revenue they're still going to have to agree on what hockey revenue is.
     
  6. Good point...
     
  7. me2

    me2 Calling out the crap

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    Or you can have a hard cap set at $ amount unrelated to revenue. If revenue goes up 50% but the inflation is 15% (over 5 years) the cap goes up 10%. If revenue got up 0% but inflation is 15% (over 5 years) then the cap goes up 10%.

    Players option, lock into revenue or lock into the inflation.
     
  8. thinkwild

    thinkwild Veni Vidi Toga

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    I was wondering if that might work too. The league is asking the players to guarantee the numbers after the rollback. The players know the owners can afford more than their rollingback so salaries would rise. The owners want to limit the rate of inflation of overall salaries. Perhaps a compromise can be found in tieing the rate of overall salary inflation to the rate of increase of something they agree on as designated hockey revenue. That way, it doesnt really matter that they are lying about that number, only that its easily measurable and you are measuring its reate of change.

    OfficeGlens idea would seem like something you could negotiate against the owners current payroll range system, but as said, getting in bed with the owners declaration of revenue numbers is a mess the players want to avoid because they will end up getting shafted.
     
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