cleduc said:
That's Goodenow BS economics. That's only player salary. Who is picking up the tab on these player costs:
Signing Bonuses
Performance Bonuses, Reporting Bonuses, etc.
Present Value of Deferred Compensation
Player Pension Benefits
Medical and Dental Insurance Benefits
Disability Insurance Benefits
Player per diems and Training Camp Allowances
Employer Payroll Taxes
Other Miscellaneous Costs
Player Finish and Other Monetary Awards (Article 28)
Payments for Games 83-84 (Article 16)
Gee....I dunno. Let's see. In the real world, it looks a bit like this:
Signing Bonuses - If a prospective employer wants me to jump ship with my current company and come to work for him? Well....If he wants me bad enough to offer me a "signing bonus", then that's on him. You're saying that I should be responsible for paying for that bonus by including it in my negotiated annual salary? If that's the case, what was the point of offering the bonus? Why not just offer a higher annual salary to begin with and call it a day?
Performance Bonuses, Reporting Bonuses, etc. - Same as above. Should my performance exceed expectations to the point where I'm earning substantial bonuses, then I'm doing my job very well, and deserve every penny. If the bonuses are kicking in at a level where they are EASILY acheivable, then WHO is to blame for setting the "bonus structure" too low? Again....why should I be asked to include those bonuses in my annual salary? What was the point in setting up a "bonus structure" to begin with?
Present Value of Deferred Compensation - If I were willing to defer some of my salary so that my employer could use that money to better the Company, then WHY should I have to have the money I've ALREADY "given up", (at least on a temporary basis), included as a "percentage" of my annual salary. I would be better off telling my employer to get BENT when he asks me to "take one for the team" so that we'll
all be better off, and tell him he'll have to look ELSEWHERE than MY salary for working capital. Or are you suggesting that I should take a hit in salary to cover some OTHER employee"s "deferred compensation"?
Player Pension Benefits - It's called a "benefit" for a reason. If I'm paying for it mySELF by having it calculated into my annual salary, then how much of a "benefit" is it? ALL companies offer "benefits" in one form or another. If the employee is paying for it, it ceases to BE a "benefit".
Medical and Dental Insurance Benefits - No different than any OTHER company offering Medical/Dental Insurance. If they're going to include it as PART of my annual salary, then I'd expect them to BUMP UP my salary accordingly.
Disability Insurance Benefits - See above, but with a twist. Companies, ALL companies, are REQUIRED to pay DI Benefits. You want to include it in my annual salary? Then you're going to have to bump my salary up to cover the cost of something which YOU, as the EMPLOYER are REQUIRED to pay.
Player per diems and Training Camp Allowances - There's not a single company out there that forces it's employee's to pay for their OWN expenses while travelling on business or training for the benefit of the COMPANY. If you want me to pay for the cost of attending numerous symposiums/training seminars/business meetings out of my OWN pocket, then you're going to have to make sure that my annual salary is sufficient to cover these costs. If I spend $30K out of pocket per year while on the road on "company business"? Fine. I'll expect my annual salary to see a $30K increase to cover the cost.
Employer Payroll Taxes - You DO understand how "Employer Payroll Taxes" WORK, don't you? Here's a primer.....Every paycheck, your employer deducts a percentage, (based upon various "tables" provided by Federal/State/Local government), from your paycheck. He's deducted it from your paycheck, therefore, he is NOT paying it to YOU. What he DOES is take it and cut a check DIRECTLY to the Federal/State/Local government to which it is OWED. There's no "out of pocket" expense to HIM. He's simply acting as a "clearing house", a "go-between", between YOU and the Fed/State/Local Government. He's taking YOUR money and sending it directly to the appropriate agency. By asking that "Employer Payroll Taxes" be included in MY annual salary, my boss would be forcing ME to pay my taxes......
TWICE.
Other Miscellaneous Costs - "Miscellaneous" as in what? The cost of pencils? Paper clips? File folders? Computer hardware? Software? Telephone bill? Other utilities? I don't know about you.....but I've NEVER been employed by a company which demands that I cover the cost of my own "office supplies".
Player Finish and Other Monetary Awards (Article 28) - Would fall under the category of "bonus". The better you perform for your company, the better your company does. It's a "reward" for making your company stronger than it was BEFORE you got there. Say your boss wants to hold a spring "sales drive". He asks all employees to come in, every day, AFTER work, to work the phones and try to drum up ADDITIONAL business. He advises you that you will be working from 5pm-9pm every night, AND "some weekends", for no increase in salary. Wouldn't YOU expect a "bonus" should your efforts result in a spike in business and more money in his coffers? Otherwise, why put in the extra hours? Pride? Hooey.
cleduc said:
Those are cost compoents of labor costs directly associated with labor that are included in the 75% number that concerned the league and included in the roughly 55% league target number. You cannot ignore them.
Those are costs that are carried by EVERY company who does business.
No....you cannot "ignore" them. You simply have to LIVE WITH THEM.
They are ALL part of the "Cost of doing business."
I doubt you'll find ANY company who demands that it's employees accept a wholesale, company-wide, reduction in salary whenever the lease payments on the building goes up, or when the phone bill comes in too high, or when Workman's Comp. rates triple.
I also doubt you'll find ANY company who expects their employess to GUARANTEE that they will tie their salaries DIRECTLY to a percentage of what the company's annual telephone/utility/rent bills will be.
Especially when it is the EMPLOYER himself who is DRIVING up costs through STUPID business decisions.