Goodenow letter - Item #7...

Discussion in 'Fugu's Business of Hockey Forum' started by ti-vite, Feb 16, 2005.

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  1. ti-vite

    ti-vite Registered User

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    7. Indexing of Tax Rates and Payroll Minimums & Maximums All dollar amounts would be in place for 2004-05 (pro-rated) and 2005-06. Dollar levels for tax rates, payroll minimums & maximums for subsequent years either constant or increased by % change in greater of either hockey related revenues or only the gate receipts and broadcasting segments of hockey related revenues from the 2005-06 base year.

    I thought it deserved its own thread, seen it pop up in a few others. Essentially the two sides were more than 6M$ apart, more something like 25-30M$ considering the index year would be the next when revenues were lowest...so the players want linkage but only the upside. If revenue drop by 30% next year then rise back up to regain the pre lockout, the CAP would sit somewhere between 62-67M$...not 49M$

    Go figure.
     
  2. rmp

    rmp Registered User

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    I wonder why Bettman didn't mention this in his reply letter back to Goodenow. It would have been a better rebuttal than his argument about every team being at 49 million, which is pretty weak, considering it's not a realistic scenario.
    It's hard to believe he missed it. Maybe the owners were actually considering something like that?
     
  3. incawg

    incawg Registered User

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    Guy from TSN just asked this...

    LOL @ Bob's response:

    "You can call it linkage, we call it indexing."

    :lol :lol :lol
     
  4. ti-vite

    ti-vite Registered User

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    Yeah, I almost crapped my pants. Hilarious. :lol
     
  5. Luc Labelle

    Luc Labelle Laine 895

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    I love it, a number of the pro-player analysts have been stating that impasse route is out the window because both sides were on the cap philosopy. Except for the fact this imfamous clause #7 will reinforce the fact that the players made no movement towards a cost certain system to establish a healthy league. This clause makes the last NHLPA offer worse than the previous CBA.

    If the league loses 30% revenues next year, then at the point at which the NHL regains their current revenue levels the indexing would move all thresholds upward by 42%. The NHLPA range for salaries would become 35.5 to 69.5 with a soft ceiling of 76.5 million. This would be absolute financial suicide for the NHL. RIDICULOUS!!!!
     
  6. rwilson99

    rwilson99 Registered User

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    The index makes the PA offer the sickest joke of all. Under the PA model, the soft cap would be at $49 and a hard cap would be at 53.9 Million.

    The index would apply to 06-07 revenues, and the LINKAGE in the PA proposal would look like this...

    REV Soft Hard

    2.1B 70% 77%
    2.0B 74% 81%
    1.9B 77% 85%
    1.8B 82% 90%
    1.7B 86% 95%
    1.6B 92% 101%

    In other words... with a 20% drop in league revenue, commesurate with the drop experienced after the 94 baseball strike, the league would have been tied for 6 years to a hard cap of over 100% of hockey revenues.

    That's not a meaningful salary cap, it's bargaining in bad faith.

    DO THE MATH.
     
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