NBA CBA vs the Players Offer

Discussion in 'Fugu's Business of Hockey Forum' started by Egil, Dec 15, 2004.

Thread Status:
Not open for further replies.
  1. Egil

    Egil Registered User

    Joined:
    Mar 6, 2002
    Messages:
    8,838
    Likes Received:
    1
    Trophy Points:
    129
    Home Page:
    Soft Salary cap of 48.04% of league revenue. The NHLPA proposal has nothing of the sort. As we all know, the NBA cap has the Larry Bird exemptions (good for keeping your players), and various exemptions to allow teams to sign a player in the offseason. This COULD be applied in the NHL, with the afformentioned exemption to keep your own players.

    10% Escrow on all player salaries. This is used to pay the owners if player salaries exceed 55% of league revenue. As long as player salaries stays below 61.1% of league revenue, the owners are GUARANTEED to pay at most 55% of revenue to player salaries. The NHLPA proposal has NONE of this.

    Individual Salary Caps. A player, based on years of service, has a maximum salary set out in the CBA. This is done to ensure that a few players don't take ALL the money, leaving the bench warmers with nothing. The NHLPA proposal has NONE of this.

    Luxury Tax. The NBA CBA has a 100% Tax triggered if player salaries exceed 61.1% of league revenue, payable by teams whose payrolls exceed the teams share of 61.1% of league revenue. There is NO TAX is player salaries are below this level. I also suspect that this is what the NBA owners are circiling the wagons on, and I expect to see the luxury tax triggered slightly lower, as opposed to only once the escrow fund is no longer sufficient.

    Using a 2.1 Billion dollar figure for league revenue, the NHLPA offer has a 20-30% tax on payroll over 64.3% of league revenue, a 50-60% tax on payroll over 71.4% of league revenue and a 60-70% tax on payroll over 85.7% of league revenue. As you can see, this isn't even CLOSE to the tax that is levied in the NBA, neither in the amount of tax paid, nor in the level at which the tax is paid.

    Also of note, based on the Unions rhetoric, they would reject the NBA proposal as it contains a linkage between player salaries and revenue.
     
  2. wilka91*

    wilka91* Registered User

    Joined:
    May 5, 2004
    Messages:
    4,251
    Likes Received:
    0
    Trophy Points:
    0
    The NHL should use the NBA CBA
     
  3. TonySCV

    TonySCV Golden

    Joined:
    Mar 2, 2004
    Messages:
    14,425
    Likes Received:
    20
    Trophy Points:
    116
    Location:
    Los Angeles, CA
    There are elements of both the NBA and NFL CBA's that can be used to benefit the NHL.
     
  4. Trottier

    Trottier Very Random

    Joined:
    Feb 27, 2002
    Messages:
    29,232
    Likes Received:
    2
    Trophy Points:
    0
    Occupation:
    Marketing Executive
    Location:
    San Diego
    Home Page:
    Amen! :handclap:

    Been saying as much for two years. And, the ironic thing is, all the elements for such a compromised solution are out on the table now, brought there by the two sides.

    Ultimately, that is what will happen, IMO.
     
  5. Buffaloed

    Buffaloed webmaster

    Joined:
    Feb 27, 2002
    Messages:
    28,099
    Likes Received:
    3,075
    Trophy Points:
    232
    Location:
    Buffalo
    Is there anything in the NBA proposal regarding contract buyouts?
     
  6. Motown Beatdown

    Motown Beatdown Need a slump buster

    Joined:
    Mar 5, 2002
    Messages:
    8,572
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    Indianapolis
    Home Page:

    Here you go,

    http://members.cox.net/lmcoon/salarycap.htm#32
     
  7. Buffaloed

    Buffaloed webmaster

    Joined:
    Feb 27, 2002
    Messages:
    28,099
    Likes Received:
    3,075
    Trophy Points:
    232
    Location:
    Buffalo
    That doesn't really address buyouts. What I'm looking for is whether the NBA proposed CBA contains specific buyout terms and how that's applied to the cap.
     
  8. thinkwild

    thinkwild Veni Vidi Toga

    Joined:
    Jul 29, 2003
    Messages:
    8,953
    Likes Received:
    213
    Trophy Points:
    156
    Location:
    Ottawa
    Everytime I try to read the NBA CBA, my brain hurts. Surely thats a goal of Bettmans - make the CBA so incomprehensible that fans will never be sure enough of how its working to be able to call out management for bad business decisions in the management of their team.
     
  9. s7ark

    s7ark RIP

    Joined:
    Jul 3, 2003
    Messages:
    27,542
    Likes Received:
    58
    Trophy Points:
    176

    What that doesn't even make logical sense. It the CBA is too incomprehensible then teams can't use it as an excuse for poor performance to the public. Then it becomes all about the success of the team.
     
  10. John Flyers Fan

    John Flyers Fan Registered User

    Joined:
    Feb 27, 2002
    Messages:
    22,416
    Likes Received:
    1
    Trophy Points:
    0
    Home Page:
    No the NBA has nothing regarding buyouts. You either pay the entire amount, or you negotiate an amount with the player. It does not effect your salary cap status, as you can pay your player over and above the salary cap.

    IMO the NHL would sign the NBA CBA tomorrow, and I wrote that to Bob McKenzie earlier today, his response:

    John, you may be right. The PA might, and I say might, agree to an NBA style system but for the very reasons you outlined -- teams like Portland going $40 million over the cap -- the NHL would want it tightened up significantly. If not a hard cap, an even more punitive tax system than the NBA's, which doesn't appear to doing what it was intended to do. That's obviously the middle ground in this thing -- that is, an NBA style system with a little more teeth. Not sure we get there, though.


    26 of the 29 teams in the NBA are over the soft cap, and approx. 14 of the 29 also pay the NBA's luxury tax.
     
  11. GKJ

    GKJ Global Moderator

    Joined:
    Feb 27, 2002
    Messages:
    142,202
    Likes Received:
    3,008
    Trophy Points:
    232
    Just so everyone knows the NBA CBA is going to hell after this season because it expires and they're going to have a lockout too
     
  12. NomadManderson

    NomadManderson Registered User

    Joined:
    Dec 17, 2003
    Messages:
    5,041
    Likes Received:
    1
    Trophy Points:
    0
    The NBA system has its problems, but the cap exemptions are all very reasonable and functional. The reason why salaries have spun out of control again is because of the RFA system. In the NBA an RFA can sign an offer sheet with any team with enough cap space, or perhaps with the mid level exception. Then his team has 15 days to decide whether or not to match that offer. If they do, he is signed to his current team under the terms of the offer sheet, and if they don’t he is signed to the team that he signed the offer for. There is no other form of compensation, like the draft picks that the NHL currently has. As a result many more RFAs get signed to offer sheets in the NBA. The teams signing RFAs to offer sheets want the players current team to not match the contract, so they’ll usually sign the player to an offer that is just beyond what they expect the other team would pay to keep him. As a result, these players wind up being overpaid. If the NHL kept its current system with the compensatory draft picks, there would be no increase in RFA offer sheets.

    The other thing the NHL could tweak is the “Bird†exemption. In the NBA, any team with a player under contract for three years or more has his “Bird†rights which allows them to go over the cap to sign him, and in fact that team can offer the player more money than any other team. If a player is traded, the team he is getting traded to acquires his Bird rights, even if he is traded right before his current contract expires. The NHL could tweak that so that the player will have had to serve at least a full season of the contract under his current team before that team acquires the rights to sign him to the most amount of money.

    The NBA system is not perfect, but its basic concepts are superior to the hard cap concept that Bettman is pushing. A hard cap causes too many unnecessary problems… I’m not even talking from the players POV here… I’m talking about from a team building POV. The NBA may lock out it’s players to start next season, but no way will it last long. Say what you will about the NBA, they have a competent commissioner and competent owners who actually can run a business without driving it to the brink of death.
     
Thread Status:
Not open for further replies.

Share This Page

monitoring_string = "358c248ada348a047a4b9bb27a146148"