West
Registered User
I've always felt that any real discussion on a matter is pretty pointless until you first go over the numbers involved. First of I'd like to admit that I in no way have any inside sources. This is just information I've picked up off mostly the Nhl and NHLPA websites respectively.
Overview and short forward projections.
Both the NHL and NHLPA website have posted what I can only assume is their best estimate at leageue revenues player costs and other associated costs all values are in millions.
_________________NHL_____NHLPA___% diff.
Total Revenue_____1851____2082_____12.5%
Total Player Costs__1479____1511______2.2%
Other Costs________736_____795______8.0%
Total_____________-364____-224____-38.5%
Basically both sides seem to agree (to a resonable percentage) what revenues and costs are and that the league as a whole is losing a pretty significant amount of money. I'd say that everyone has to agree that the NHL will likely take a pretty significate hit in the revenue department due to TV money drying up and backlash from the fans. For the sake of argument though I'm going to assume that the NHLPA's numbers are and will be closer to correct over the length of a new CBA.
Team by Team overview.
The nhl website had a document up earlier this grouping teams financail information for top ten, middle ten and botton ten in revenues. By taking an average of each of those values you can get three points and do a very crude estimate of what the revenues are for all 30 different teams (multiplied everything by 1.1247).
NHLPA
107, 104, 101, 98, 95, 92, 89, 86, 83, 80
77, 74, 71, 68, 65, 63, 61, 60, 59, 57
56, 54, 53, 52, 50, 49, 48, 46, 45, 44
From this it's pretty much a given that some teams generate literally twice as much revenue as others. Also it should be noted that the NHLPA estimates other costs involved in running a franchise at over 26 million. So if you had a hard cap at 31 million and assumed that every team met the cap roughly the bottom ten teams would likely loose money. The top ten teams would make 20+ million a year. To me this speakes volumes about the NHLPA resitance to a hard cap without massive revenue sharing (I'm assuming that massive revenue sharing would kill most resistance to the idea). Also it says to me that when people talk contration as solving the problem you'd need to loss about 10 teams to really make a dent.
Revenue sharing
Hard tax soft tax whatever you call it theirs a good chance that alot of money is going to need to go from the high revenue teams to the low revenue teams for a CBA to be worked out any time in the near future. For the sake of simplicity here's a quick example of how the average top middle and low revenue sharers would nake out with 50% revenue sharing and the then distributed out evenly.
high____middle__low
94.2____63.7____50.1____revenue
47.1____31.8____25.0____tax
34.7____34.7____34.7____refund
81.8____66.6____59.7____total revenue
62.6____47.4____41.0____current player salary
29.9____24.5____25.0____other costs
-5.2___-12.4___-18.8____bottom line with no profit sharing under current system.
-12.4____2.8_____9.6____increase in revenue due to tax.
11.9____2.0____-5.2_____bottom line with 40 Million cap every team maxed out.
So with a 40 million cap and say a 32 million floor and 50% profit sharing it looks to me like every team would do significantly better than in the current system by the NHLPA numbers. Going by the NHL numbers about a 34 million cap and 28 million floor would bring similar numbers.
Overview and short forward projections.
Both the NHL and NHLPA website have posted what I can only assume is their best estimate at leageue revenues player costs and other associated costs all values are in millions.
_________________NHL_____NHLPA___% diff.
Total Revenue_____1851____2082_____12.5%
Total Player Costs__1479____1511______2.2%
Other Costs________736_____795______8.0%
Total_____________-364____-224____-38.5%
Basically both sides seem to agree (to a resonable percentage) what revenues and costs are and that the league as a whole is losing a pretty significant amount of money. I'd say that everyone has to agree that the NHL will likely take a pretty significate hit in the revenue department due to TV money drying up and backlash from the fans. For the sake of argument though I'm going to assume that the NHLPA's numbers are and will be closer to correct over the length of a new CBA.
Team by Team overview.
The nhl website had a document up earlier this grouping teams financail information for top ten, middle ten and botton ten in revenues. By taking an average of each of those values you can get three points and do a very crude estimate of what the revenues are for all 30 different teams (multiplied everything by 1.1247).
NHLPA
107, 104, 101, 98, 95, 92, 89, 86, 83, 80
77, 74, 71, 68, 65, 63, 61, 60, 59, 57
56, 54, 53, 52, 50, 49, 48, 46, 45, 44
From this it's pretty much a given that some teams generate literally twice as much revenue as others. Also it should be noted that the NHLPA estimates other costs involved in running a franchise at over 26 million. So if you had a hard cap at 31 million and assumed that every team met the cap roughly the bottom ten teams would likely loose money. The top ten teams would make 20+ million a year. To me this speakes volumes about the NHLPA resitance to a hard cap without massive revenue sharing (I'm assuming that massive revenue sharing would kill most resistance to the idea). Also it says to me that when people talk contration as solving the problem you'd need to loss about 10 teams to really make a dent.
Revenue sharing
Hard tax soft tax whatever you call it theirs a good chance that alot of money is going to need to go from the high revenue teams to the low revenue teams for a CBA to be worked out any time in the near future. For the sake of simplicity here's a quick example of how the average top middle and low revenue sharers would nake out with 50% revenue sharing and the then distributed out evenly.
high____middle__low
94.2____63.7____50.1____revenue
47.1____31.8____25.0____tax
34.7____34.7____34.7____refund
81.8____66.6____59.7____total revenue
62.6____47.4____41.0____current player salary
29.9____24.5____25.0____other costs
-5.2___-12.4___-18.8____bottom line with no profit sharing under current system.
-12.4____2.8_____9.6____increase in revenue due to tax.
11.9____2.0____-5.2_____bottom line with 40 Million cap every team maxed out.
So with a 40 million cap and say a 32 million floor and 50% profit sharing it looks to me like every team would do significantly better than in the current system by the NHLPA numbers. Going by the NHL numbers about a 34 million cap and 28 million floor would bring similar numbers.
