Future Salaries

Discussion in 'Fugu's Business of Hockey Forum' started by FrozenPond, Feb 10, 2005.

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  1. FrozenPond

    FrozenPond Registered User

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    Let’s assume that the owners eventually get their deal. The revenues are going to plummet in the meantime. What kind of salaries will the players be looking at when all is said and done?

    The owners are guaranteeing between 53 and 55 percent of revenues for the players, so let’s call it 54%.

    In their Feb 2 proposal the owners said that the players’ cut included other costs besides salaries. They said $2.2 million per team in other costs, but the skeptic in me says it’s probably more, let’s call it $3 million per team (just to make my numbers even out).

    Now let’s say that revenues fall to $1.5 billion, which isn’t a stretch. One possible team salary breakdown for 23 players:

    $3.5mil x 1 (best player, let's say 1st line center)
    $2.0mil x 2 (next 2 best players, let's say top D-man and starting goalie)
    $1.5mil x 3 (two 1st line players and one 1st pairing D)
    $900K x 5 (2nd line, 2nd pairing D)
    $750K x 5 (3rd line, 3rd pairing D)
    $600K x 4 (4th line, backup goalie)
    $450K x 3 (spares)

    $12mil for best 6 players, $12mil for other 17 players, $3mil for other player costs. That’s $27 million per team.

    $27 million * 30 teams / 0.54 = 1.5 billion in revenues.


    Imagine if disaster strikes and revenues fall to $1 billion. I think it’s possible because people are completely fed up.

    $1.8mil x 1 (best player, let's say 1st line center)
    $1.2mil x 2 (next 2 best players, let's say top D-man and starting goalie)
    $850K x 3 (two 1st line players and one 1st pairing D)
    $650K x 5 (2nd line, 2nd pairing D)
    $500K x 5 (3rd line, 3rd pairing D)
    $400K x 4 (4th line, backup goalie)
    $300K x 3 (spares)

    $6.75mil for best 6 players, $8.25mil for other 17 players, $3mil for other player costs. That’s $18 million per team.

    $18 million * 30 teams / 0.54 = 1.0 billion in revenues.

    Man, do those salaries ever look different.
     
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