My kick at the CBA long read

Discussion in 'Fugu's Business of Hockey Forum' started by Go Flames Go*, Sep 28, 2004.

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  1. Soft Cap at $35 Million to begin the new CBA and a min spending at $31 million.

    After the first season the cap is set differently each year at 55% of Revenue. So it will increase and deacrease with the health of the league, the accounting and end of season revenue is done by a group both the NHLPA and NHL agree upon.

    Rookie Salaries are set as the following
    1st Rd Choices Max $850,000.00 a year not including bonuses max 3 year contract no less no more. Minniumum $500,000.00
    2nd Rd Choices Max $775,000.00 a year not including bonus max 3 years contract no less no more. Minniumim $450,000.00
    3rd Rd Choices to the last round at max at $550,000.00 for a max at 3 years, and min at $350,000.00.
    Bonuses are capped at $100,000.00 per player and it cannot exceed this amount in no shape or form.

    Escrow with 7.5% of player salaries that go into this and 5% of revenue, at the end of the season is Salaries exceed the cap, then the escrow kicks in until the salaries are at the 55%, and left over is then given to players. If 55% of less then the escrow is divided to the players.

    Signing Bonus, teams can offer a Signing bonus up to $10 million upfront to a player, which will be spread out during the duration of the contract at only 50% of the bonus. So if Player X signs a 5 year 25 Million contract, and he is given a bonus of $6 million upfron then 50% of the bonus is taken which is $3 million and divided by 5 which comes out to $600,000, which is then coutned against the cap, the contract can be structred which ever way but the bonus cannot.

    Realesing a player, if you want to release a player because he is not performing, then the following applies.
    Players making the min to 2 Million can be released but 75% of the salary must be paid, and the remaning 25% will count against the teams cap the next season(excluding bonuses signed), the team will still be charged the full 100% of the players salary for year.

    2-5 Million can be released with 50% being paid in full and the other 50% counting against the cap the next season, the team will still be charged the full salary against the cap.

    5 Million and above 30% must be paid of each reamaning year, and the will be charged the full 100% of every year terminated against there cap, and if it goes over the cap they will charged with the tax.

    After $35 million any team over this amount to the amount of $40 million will be charged a dollar for dollar tax which will go into a pool, and they will be disqualified from the revenue sharing and will receive only 50% of escrow if triggered.
    $40-45 million will result in a $1.50 for $1.00 tax, and the team is disqualifed from revenue sharing, and only 10% escrow.
    $45 and up will be charged a $2.50 for $1.00 tax and they are disqualifed from revenue sharing, and escrow.

    Revenue sharing-33% of tv revenue, and 17% of team revenue is put into a pool which is distributed evenly after teams in the are at break even point, if team all have made a profit of even $1 dollar then the it is equally divided. Playoff revenue is not put into this fund.

    Restricted Free agency at 28 years of age. No qualifying offers players are bound to there team, but there salary can not decrease in the first year of the salary earned in the previous year.

    Franchise PLayer tag can be applied to 1 player who is entering UFA if a team wishes. The player is automatically given a offer of 10% the average salary of the top 5 players in the league, and he is free to negotiate a long term deal with the current team, or a different team in between 20 days, if he decides to sign with a different team the salary cannot decrease in any of the years he signed, the team owning his franchise rights are given the chance to match, or let him go.

    Maximum and Min contracts are also in affect.

    Rookies capped see above
    3 Years in the league max deal at 3 million a season min deal at 1 million a season
    3-6 years in the league max deal at 5 million a season, and min at 2 million a season
    6-10 years in the league max deal at 7.5 million a season and min at 4.5 million a season
    These do not include bonuses and incentives
    10 years or more max deal at 8 million and min at 1 million.

    Teams that have a player entering free agency can offer a player 15% over the max deal, but it cannot go over the salary cap in the first year.

    Team who are caught under spending are fined, and disqualified from escrow and revenue sharing, and fofiet there franchise player tag rule for that season, if repeated they are fined $5 million and disqalified for 5 years from escrow and revenue sharing.

    Trading players can be done as they wish, but a team cannot fall 15% less then what there payroll was to start the season, so salary dumping is taken away to even the playing field.

    Max 7 year contracts.
     
  2. Common g's I wanna see if I put together a nice proposal.
     
  3. Guest

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    I'm not sure how likely the proposal is to be accepted, but at least you are trying. That's more than some people are accused of.

    If you are going to link hockey revenue and the salaries, it's going to be a challenge, and likely something that neither side will agree on. It's hard enough for the PA to consider a cap of any kind, even if it's soft, let alone to agree with the owners as to what is hockey revenue. Even finding a mediator to determine this could be a major challenge, so while nice in theory it probably is too difficult.

    In general I am not a big fan of proposals that have itemized details on each little rule. It's hard to put it in perspective, I prefer to just see something that says a buyout/release is this percentage or this total charge, not a table of the variety.

    I will admit I am not sure what kind of TV revenue they generate and if they share any revenue at all. So I can't really comment on it. I don't think you'll see the teams willing to share any more revenue than they do now though.

    RFA at age 28? Meaning no RFA before 28? Or did you mean UFA? The PA would not be favorable of losing RFA until 28 when they have it far younger.

    I can't say there is any single thing I see I like specifically in your proposal.

    Tell me, what do you think the effects of the proposal are? What results will we see and what will we see prevented?
     
  4. It will create caps on salaries, and still give the players there mutlimillion dollar deals, plus rookies must prove the will earn a big paycheck and not receive one. Becoming a UFA at 28 is a benefit to the players, you give some you take some. Soft Cap, so team can go over it, but they are taxed, so players will still earn tons of money, and teams will all make profits.

    And I agree Vote Kerry **** that peice of **** George Bush.
     
  5. garry1221

    garry1221 Registered User

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    i like this, simply for the fact that no rookie should be entitled to more than a million on his first contract... absolutely insane IMO

    still never understood the whole escrow thing, but IMO if the players are getting the extra money then why even bother having bonus clauses in contracts when they're just getting the extra money anyway... yeah not as much, but still it's money for nothing that doesn't sit right with me

    interesting idea... i think we'd have to see this idea played out... or at least find out who got signing bonuses and figure out the team salary of any given team to actually see what effect this could have

    interesting idea... wouldn't make too many changes, if any at all to this

    personally i believe that if a team were to go over the cap they shouldn't get any part of anything.. it was their choice to go over, now they can suck it up and shell out the cash, there shouldn't be any reward ie escrow, for spending hand over fist

    rfa at 28 is a must for the concessions back to the union, not positive what you mean that their salary cannot decrease in the first year etc... confused a little there, but if you mean they can't earn less than they did the previous year then i'd say no on this part.. however if you meant they can't make less than their previous CONTRACT then i'd feel a little better on this part.... if you meant the former then you'd see a lot of RFA's getting bought out IMO... which does little to nothing when it comes to salaries or the cap, even with the buyouts structured as you have them

    no on this... this effectively sets a cap per player, while in the past i thought that's what needed to be done, it's a little shakier in my mind now

    how is this supposed to figure in... if a team offers one of their UFA's a contract, then offers another ufa a contract.... end of the season they realise they've gone over the cap then what happens... it's not their player's fault they went over, there's loose ends on this one that need tying up

    fines would be a big no, where do the fines go?... the league? the PA?, if teams don't want to spend, no one can force them, they just get cut out of the rev. and escrow money, simple as that,

    in most cases you'd see similar salaries being traded thus most likely resulting in two players of equal value so what's the point in a trade... with the way the cap and tax is structured there shouldn't be any need for something such as this as teams would most likely steer clear of the huge salary for next to nothing trades, and as i said before, if they want to pick up salary beyond the cap, then it's their choice and they can pay up
     
  6. ^ Will you be voting Kerry?
     
  7. PecaFan

    PecaFan Registered User

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    Some interesting stuff, but the bonus stuff is too complicated.

    Bonus = salary. It's that simple. If I get a contract for 500,000, and a million dollar signing bonus, my salary is 1.5 million. Period. If it's a multiple year contract, then divide the bonus equally amongst the years, and add it to each year for calculations. If it's performance bonuses, then they get added to next year's salary for calculating.

    It was the ludicrous splitting of bonus and salary for rookies that led to many of the problems now. Giving a Kovalchuk a million in salary and 5 million in bonus and trying to pretend he's capped is just insane.
     
  8. hockeytown9321

    hockeytown9321 Registered User

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    Yes a bonus would get prorated out, but they are paid up front. This would continue the same problems that you have today. The Rangers are much more able to hand out a huge bonus than the Panthers. People don't realize this.
     
  9. me2

    me2 Calling out the crap

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    A big fat no to the 50% discount on signing bonus. A team with money would pay every player in signing bonuses. Rangers need to sign a goalie, Hasek is prime, here $2m/y and $10m signing bonus for 2 years. Lets say they get a young star like Havlat, just pay him a $10m signing bonus and $1/y contract. Rich teams will exploit the rule to get 50% more salary cap.

    All of the bonus should count in the 1st year. A smart team with cap space can buy itself some time by shifting future expensive contracts forward. Got 5 stars on your team that are going to need big raises but you have got a lot of free cap space now. Get smart, don't wait for the cap squeeze, start signing some to forward weighted contract so their contracts are lower when you need the space more later.

    If the offer is made to team Xs RFA then team X should be able to choose how to structure the bonus to suit its need (pay a lump sum or spread it out) if they want to keep their RFA.
     
    Last edited: Sep 29, 2004
  10. Guest

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    I'd rather see all contracts go heavily based on incentives or just guaranteed contracts, but I don't like seeing them mixed together that much. My ultimate solution to the bonuses issue would be that everyone makes the same base salary on a yearly basis, and then you have various bonuses based on anything from statistical output to team success and winning. Then if you have a player that falls out of the season due to injury, they are only on the hook for something like $250,000 that season, very fair for a year on the mend depending who you ask. I know insurance covers most of the injuries of any length of time for players, but this would be a lower risk for the owners who could perhaps even save on insurance rates. I'm a big believer in the players earning their money. If they earn their money, I have no problem with the owners paying it. There are too many floaters in the league.

    You could really work some creative contracts with incentives only. You might offer more to the scorers if the team wins versus them just racking in the points. This is where the smart GM's would shine as they would show they know how to motivate their players.
     
    Last edited: Sep 29, 2004
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