hockeytown9321
Registered User
- Jun 18, 2004
- 2,358
- 0
Here is a way to guarantee owners don't lose money, and players don't have to accept a cap:
1. 5% paycut across the board. This instanly reduces last year's losses by roughly $75 million, which would put them at $149 million.
2. 50% luxury tax starting at $40 million, 100% at $50 million. Within two years, the average payroll will be no more than $40 million, $1.2 billion overall. The tax is only to be paid by teams over the limit if point #3 below does not cover losses. this forces owners to be within that tax threshold, otherwise, they are subsidizing each other's loss.
3. The PA establishes an escrow fund, with each player contributing 10% of their salary. In the event the owners lose money, they take the money from this escrow fund to cover them. After the paycut, this would amount to roughly $120 million, plus interest. The interest will be given back to the players at the end of each fiscal year.
4. If the league makes a profit overall, 20% of that profit is given to the players a bonus.
I know there is still a $29 million loss that hasn't been covered, but thats less than $1 million per team, and I think that would be gone as soon as the average salary settled in around $40 million.
The players would be subsidizing the owner's losses, so they would be forced to be more responsible as well.
Players can save face because it is not a cap, and owners can save face because they are guaranteed not to lose money.
1. 5% paycut across the board. This instanly reduces last year's losses by roughly $75 million, which would put them at $149 million.
2. 50% luxury tax starting at $40 million, 100% at $50 million. Within two years, the average payroll will be no more than $40 million, $1.2 billion overall. The tax is only to be paid by teams over the limit if point #3 below does not cover losses. this forces owners to be within that tax threshold, otherwise, they are subsidizing each other's loss.
3. The PA establishes an escrow fund, with each player contributing 10% of their salary. In the event the owners lose money, they take the money from this escrow fund to cover them. After the paycut, this would amount to roughly $120 million, plus interest. The interest will be given back to the players at the end of each fiscal year.
4. If the league makes a profit overall, 20% of that profit is given to the players a bonus.
I know there is still a $29 million loss that hasn't been covered, but thats less than $1 million per team, and I think that would be gone as soon as the average salary settled in around $40 million.
The players would be subsidizing the owner's losses, so they would be forced to be more responsible as well.
Players can save face because it is not a cap, and owners can save face because they are guaranteed not to lose money.