Player endorsement w/company owned by team owner?

Discussion in 'Fugu's Business of Hockey Forum' started by WTFMAN99, Nov 27, 2015.

  1. WTFMAN99

    WTFMAN99 Registered User

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    This is probably illegal under the CBA but just wondering.

    Could an organization like Edmonton sign McDavid to an 8 year deal with a 5 million dollar salary once his ELC is up, and offer him a large endorsement deal with Rexall pharmacy?

    Could the Leafs offer Stamkos a 6.5M per year deal for 7 years this summer and offer him a large endorsement with Bell or Rogers?

    Thanks.
     
  2. LadyStanley

    LadyStanley Registered User

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    The league would look very closely at those agreements as a cap circumvention.

    "Never say never", but I would find it unlikely because of the scrutiny.

    (You missed Joe Pavelski being a spokesperson for SAP)
     
  3. WTFMAN99

    WTFMAN99 Registered User

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    I must have missed it. Is it allowed because it's San Jose versus a Canadian team?
     
  4. cheswick

    cheswick Non-registered User

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    It's prohibited by the CBA under the section of No circumvention. A player cannot enter into any kind of financial arrangement outside of this contract with "any owner, shareholder, Club Affiliated Entity, the NHL or third party acting at the behest of a Club".

    "For example, a Player is prohibited from entering into an agreement with a broadcasting company that is a Club Affiliated Entity, in which the Player agrees to host a
    weekly television show, for which he is to be compensated the fair market value of such services, as this would be something of value other than which the Player may properly receive through
    his SPC, or his share of Benefits and Government Mandates/Other Programs, or as otherwise expressly permitted by this Agreement."

    A parent company would certainly be a club affiliated entity. The CBA also makes sure to point out that this doesn't preclude endorsement deals with club sponsors, just club affiliated entities.



    Here in Winnipeg many players have deals with local car dealerships, the exception being they don't ever do ads for the Birchwood Automotive Group which is affiliated with team owner Mark Chipman.
     
    Last edited: Nov 27, 2015
  5. 93LEAFS

    93LEAFS Registered User

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    They'd probably look to see if it is inline with the market, if it is an insane outliar there would be a problem, similar to how the NHLPA will scrutinize deals between teams local tv contracts and the parent company (which owns the team).
     
  6. TOGuy14

    TOGuy14 Registered User

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    This has the potential to be an issue with the Leafs at some point given they are owned by both Bell and Rogers (with all the NHL broadcast rights).

    Would be curious to see what would happen if the Leafs signed Stamkos for like 7M but then Rogers makes him a brand ambassador for like 5M a year to advertise phones, internet, TV etc.
     
  7. 93LEAFS

    93LEAFS Registered User

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    Bettman would strip us of draft picks, fine us massively and so on. The Leafs doing that would pissoff the league to no end and flys in the face of everything they are trying to accomplish. The only way we might get away with it is the NHL doesn't want to anger their biggest source for television revenue.
     
  8. cheswick

    cheswick Non-registered User

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    That would be expressly forbidden by the CBA. So obviously there would be repercussions.
     
  9. TOGuy14

    TOGuy14 Registered User

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    While Rogers doing a direct deal it gets interesting the farther down the hole you go

    Rogers has many subsidiaries, both direct and indirect. How far removed does a corporate entity have to be to be allowed to do business with a Leafs player?

    Can FIDO sign him to be a spokesperson?

    What would happen if one of their content providing partners offered a big deal to a player as a favor to Rogers?
     
  10. He Lied to Mario

    He Lied to Mario Registered User

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    Yeah it's a big mean conspiracy against the Canadian teams. BOO HOO.
     
  11. Confucius

    Confucius We Can and We Will

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    He lied to Mario.... Oh my!:laugh:
     
  12. WTFMAN99

    WTFMAN99 Registered User

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    I just say that because as you see from the other poster, apparently Pavelski was able to do this. I imagine it would get a lot more attention and scrutiny if Montreal did this or Toronto, hell even the Rangers.
     
  13. jumptheshark

    jumptheshark Rebooting myself Sponsor

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    this is covered under the CBA--this came up a few years ago and I think it was TSN who did an article on it--sounds like either the Rangers or Wings were looking at do it and the nhl and nhlpa clarified the topic
     
  14. Aceonfire*

    Aceonfire* Guest

    Will the Leafs circumvent the cap for Stamkos?



    Looks like the Leafs will find another loophole to pay Stamkos the money he wants.

    It isn't technically against the rules, but this is why we have lockouts. The league implements changes to the CBA and teams go out of their way to pay players more money.
     
  15. Leonardo87

    Leonardo87 NY Rangers and Anaheim Ducks fan, and Pizza fan. Sponsor

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    Another Stamkos thread, really?
     
  16. InAbsensia

    InAbsensia OMG Boro is going to be our captain isn't he?

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    Kypreos is a moron.
    The Leafs won't have to do anything like that if Stamkos wants to play there, which so far isn't a certainty. They can just give him cap max and a ton of advertising revenues.
     
  17. WillNyeTheHockeyGuy

    WillNyeTheHockeyGuy #29

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    Looking past the fact that this is Stamkos, I think the point of this thread is highlighting the fact that the Leafs are (possibly?) considering some form of cap circumvention, which is the issue here. The point still stands even if it was some other player we were going after.
     
  18. Aceonfire*

    Aceonfire* Guest

    Less about Stamkos, more about using business partnerships as an incentive to lure high end free agents.


    They won't give him a max deal. It isn't feasible in the NHL these days. That's why they would supplement it with sponsor deals.
     
  19. Aceboogie

    Aceboogie Registered User

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    beat me to it haha. I like the idea actually (should be discussed in general and not turned into a stamkos only debate)

    If the owner owns a corporation and a team, why not pay from the corp to help get a cap friendly deal?
     
  20. Spybot

    Spybot

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    I think everything hockey related in Toronto will bear Stamkos' face and the leafs won't even have to try. Loads and loads of endorsement money to be had for a hometown superstar.
     
  21. gdsmack267

    gdsmack267 Registered User

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    Leafs are circumventing the cap right now with Robidas with made up injuries

    Philly will be in the same boat with vinny

    The league wont do anything due to the status of the two clubs
     
  22. ChaoticOrange

    ChaoticOrange Registered User

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    They can't pay him under the table like that :laugh: they can certainly try, but the NHL will come down like Mjollnir on them.

    He'll definitely get all the endorsement deals he could ever want though.
     
  23. Pyromaniac3

    Pyromaniac3 Registered User

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    It's Lou, he is the loophole guru.
     
  24. Vikke

    Vikke ViktorAllvin twitter

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    Because it violates the CBA.
     
  25. dubey

    dubey U scared? :(

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    Everything will bear his face lol

    First thing I thought when I read this was Stamkos branded notebooks in all of the TDSB schools
     

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