Question about CBA and salary

[Arktos]

Is it possible within the CBA to pay players other way than straight up salary?
For example, a star UFA goes to a rich club like Toronto and instead of 8 million a year he takes 6 million in salary, but gets a big ass apartment, 24/7 personal driver and other perks.
Does the CBA permit this kind of arrangement and is it used to lower player's caphits? What about giving shares in the franchise?

Another question. Can players have simultaneously another profession than hockey? If the club's owner has another company, couldn't he hire the player as a consultant or something and pay him that way.

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[Riptide]

Is it possible within the CBA to pay players other way than straight up salary?
For example, a star UFA goes to a rich club like Toronto and instead of 8 million a year he takes 6 million in salary, but gets a big ass apartment, 24/7 personal driver and other perks.
Does the CBA permit this kind of arrangement and is it used to lower player's caphits? What about giving shares in the franchise?

Another question. Can players have simultaneously another profession than hockey? If the club's owner has another company, couldn't he hire the player as a consultant or something and pay him that way.

This is very clearly stated in the CBA. The ONLY compensation teams can offer is cash, that's dictated in the SPC.

 

[Arktos]

Alright thanks for clearing that up. What about the other question then, when it's not the team offering the money per se?

 

[mouser]

No also, from Article 26 No Circumvention

26.3(g) Neither a Club nor a Club Actor may pay or provide a Player anything of value,
except as provided in his SPC, and such payment must not be in a form other than U.S. dollars,
except as expressly provided in Section 50.2(a) of this Agreement (regarding Traditional Hockey
Practices) and Section 26.3(e)(i) of this Agreement. Upon a finding of this Circumvention by the
System Arbitrator, the Player shall forfeit to the League such prohibited payment or other thing
of value.

 

[IME]

Alright thanks for clearing that up. What about the other question then, when it's not the team offering the money per se?

Club-affiliated entities (for the Leafs that would be Bell Media, TSN, Raptors, etc) are not allowed to pay a player anything other than his player salary. That means that TSN cannot pay Nazem Kadri to host a weekly radio show.

Entities that do business with a team (advertisers, suppliers, etc) can employ a player as long as the player receives fair market value for his services. Joe's Brauts can sign Kadri to an endorsement deal (for market value) even though they supply sausages to the Air Canada Centre. [Art. 26.3(e)(ii)]

Fun Fact: Players cannot endorse alcoholic products other than beer and beer-like substances

 

[Fugu]

Club-affiliated entities (for the Leafs that would be Bell Media, TSN, Raptors, etc) are not allowed to pay a player anything other than his player salary. That means that TSN cannot pay Nazem Kadri to host a weekly radio show.

Entities that do business with a team (advertisers, suppliers, etc) can employ a player as long as the player receives fair market value for his services. Joe's Brauts can sign Kadri to an endorsement deal (for market value) even though they supply sausages to the Air Canada Centre. [Art. 26.3(e)(ii)]

Fun Fact: Players cannot endorse alcoholic products other than beer and beer-like substances

Prohibition by whom-- government or leagues?

 

[IME]

Prohibition by whom-- government or leagues?

The CBA

25.1 No Player shall be involved in any endorsement or sponsorship of alcoholic beverages (excluding malt-based beverages such as beer) and/or tobacco products.

 

[Fugu]

Thank you.

 

[MarkGio]

I wonder about off the record, or hand-shake deals? An example of this is a club asking a player to take a home town discount and they'll make him captain, hook him up with connections in the industry for sponsorship deals and whatever else?

 

[Riptide]

I wonder about off the record, or hand-shake deals? An example of this is a club asking a player to take a home town discount and they'll make him captain, hook him up with connections in the industry for sponsorship deals and whatever else?

Doesn't his agent do that anyway? Honestly, I don't think this is an issue (like it is say in college sports).

 

[IME]

I wonder about off the record, or hand-shake deals? An example of this is a club asking a player to take a home town discount and they'll make him captain, hook him up with connections in the industry for sponsorship deals and whatever else?

There's nothing wrong with the examples you've posted. But, a handshake agreement giving a player a front-office job after he retires would be circumvention.

 

[MarkGio]

There's nothing wrong with the examples you've posted. But, a handshake agreement giving a player a front-office job after he retires would be circumvention.

If it was proven, sure

 

[PensBeerGeek]

I wonder about off the record, or hand-shake deals? An example of this is a club asking a player to take a home town discount and they'll make him captain, hook him up with connections in the industry for sponsorship deals and whatever else?

Good luck getting that in writing.

If it's a verbal deal, there isn't much recourse if the team reneges, so why would a player do that?

 

[danishh]

sidenote, anyone know if the nhl looked into the details of some leafs players buying maple leafs square condos a couple years back?

 

[MarkGio]

Good luck getting that in writing.

If it's a verbal deal, there isn't much recourse if the team reneges, so why would a player do that?

True. Players would spread the story around the ice and teams would struggle because of it, not to mention if a single hockey club was faced with several allegations, it would be bad for business. The owners give out way too many foolish contracts to start thinking they're in a position of power. A player could just stop playing good hockey out of protest and still earn his keep.

 

[Arktos]

Club-affiliated entities (for the Leafs that would be Bell Media, TSN, Raptors, etc) are not allowed to pay a player anything other than his player salary. That means that TSN cannot pay Nazem Kadri to host a weekly radio show.

Entities that do business with a team (advertisers, suppliers, etc) can employ a player as long as the player receives fair market value for his services. Joe's Brauts can sign Kadri to an endorsement deal (for market value) even though they supply sausages to the Air Canada Centre. [Art. 26.3(e)(ii)]

Fun Fact: Players cannot endorse alcoholic products other than beer and beer-like substances

I don't quite understand how the club affiliated entity thing works, is it companies who own a club or have the same owner? So if let's say the owner of the Leafs had shares in Nike, Nike can't sign an endorsment deal with a Leafs' player and pay him money but they can with Crosby for example? Cause if the endorsment deals are anything like in soccer we are talking about millions of dollars in market value.

 

[Riptide]

I don't quite understand how the club affiliated entity thing works, is it companies who own a club or have the same owner? So if let's say the owner of the Leafs had shares in Nike, Nike can't sign an endorsment deal with a Leafs' player and pay him money but they can with Crosby for example? Cause if the endorsment deals are anything like in soccer we are talking about millions of dollars in market value.

A perfect example is Toronto and Bell/Rogers. If they want Kessel, Kadri or Phaneuf to do ads for either Rogers or Bell, those players have to be paid market rate. IE you can't pay Kadri 5m to do an ad, if the market rate is 1m.

 

[kdb209]

I don't quite understand how the club affiliated entity thing works, is it companies who own a club or have the same owner? So if let's say the owner of the Leafs had shares in Nike, Nike can't sign an endorsment deal with a Leafs' player and pay him money but they can with Crosby for example? Cause if the endorsment deals are anything like in soccer we are talking about millions of dollars in market value.

A Club Affiliated Entity is a business in which the team has some shared ownership or control. Owning non-controlling shares in a company would not make it a Club Affiliated Entity. A sponsor is not a Club Affiliated Entity.

(c) "Club Affiliated Entity." "Club Affiliated Entity" means, with respect to a Club,
its parent company, subsidiary company, sister company, or any other entity which shares
common or family operating control with that Club, or which is controlled by a member of that
Club's senior management (i.e., the Club's Chief Executive Officer, Chief Operating Officer or
President), as set forth in the HRR Reporting Package, and subject to the following:

However there are restrictions on sponsors in Article 26, which has restrictions based on the definition of Club Actor - which is more expansive than a Club Affiliated Entity - "any owner, shareholder, Club Affiliated Entity, the NHL or third party acting at the behest of a Club".

Any activity which would be illegal circumvention if done by the team is also illegal if done by a Club Actor.

There are also specific restrictions on deals with sponsors. If a sponsor is a Club Affiliated Entity, they cannot sign a player to a deal. If they do business with the Club, but are not a Club Affilaited Entity, they may sign a player to a sponsorship deal provided i) it is not at the behest of the Club and ii) it does not pay more than fair market value.

(e) No Club or Club Actor may provide, directly or indirectly, any Player or Player
Actor, with anything of value from a Club or Club Actor other than his Player Salary and
Bonuses set forth in, and in accordance with the terms of, his SPC, and his share of Benefits and
Government Mandates/Other Programs, as set forth in this Agreement or as otherwise expressly
permitted by this Agreement. A Player or Player Actor may not receive, directly or indirectly,
anything of value from a Club or Club Actor other than his Player Salary and Bonuses set forth
in, and in accordance with the terms of, his SPC, and his share of Benefits and Government
Mandates/Other Programs as set forth in this Agreement or as otherwise expressly permitted by
this Agreement. Notwithstanding the fact that a Player must disgorge anything of value he may
have received in violation of the prior sentence, a Player shall not be guilty of a Circumvention
in the absence of knowledge that the entity from which he received something of value, was a
Club Actor. No Club or Club Actor or Player or Player Actor may engage in any conduct that is
intended to pay or provide, or has the effect of, paying or providing to a Player, anything of
value other than that which the Player may properly receive through his SPC, and his share of
Benefits and Government Mandates/Other Programs, or as otherwise expressly permitted by this
Agreement. 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.

(i) Notwithstanding the foregoing, a Club shall be permitted to make certain
"miscellaneous business expenditures" on behalf of and for the benefit of
Players, provided that such expenditures are: (i) reasonable, (ii) intended
and reasonably related to the Club's business and the Player's positive
development as a hockey Player (e.g., paying for a Player's travel/hotel
expenses for participating in promotional activities for the Club, paying
for a skating instructor or ice time, paying for an English tutor etc.), and
(iii) reviewed and approved by the League in advance.

(ii) However, nothing in this Section 26.3(e) is intended to prohibit a Player
from entering into a sponsorship, endorsement or other commercial
arrangement with a local sponsor or entity with which his Club does
business but which is not a Club Affiliated Entity, in which the Player
receives something of value, provided the thing of value received is
commensurate with (i.e., not clearly in excess of) the fair market value of
the services rendered by the Player on behalf of the sponsor or entity.
With respect to any sponsorship or endorsement arrangement between a
Player and a national sponsor, any thing of value provided to a Player
under such arrangement shall be presumptively acceptable (i.e., such thing
of value need not meet the "fair market value" test set forth in the
preceding sentence), provided that such arrangement was not made at the
behest of the Player's Club or any other Club Actor. However, the NHL
shall have the right to challenge before the System Arbitrator, through an
expedited arbitration proceeding pursuant to the third sentence of Section
26.13(a) below, the bona fides of any such national sponsorship or
endorsement arrangement on the grounds that it was actually provided for
the benefit of a particular Club.

(iii) Each Club shall maintain a list of sponsors with which it does business,
which lists shall be updated as necessary and shall be provided to the
NHLPA periodically.​

 

[kdb209]

A perfect example is Toronto and Bell/Rogers. If they want Kessel, Kadri or Phaneuf to do ads for either Rogers or Bell, those players have to be paid market rate. IE you can't pay Kadri 5m to do an ad, if the market rate is 1m.

Actually, since Rogers and Bell are Club Affiliated Enttities, they would be prohibited from offering sponsorship deals to Kessel, Kadri or Phaneuf, even at fair market value (see above).

 

[BoltSTH]

Didn't Crosby have to pay "reasonable" rent when he lived in Mario's basement? Old CBA, but same principle.

 

[Major4Boarding]

MOD Note - Moved the Arian Foster IPO discussion here

http://hfboards.mandatory.com/showthread.php?t=1519541

 

[Riptide]

Didn't Crosby have to pay "reasonable" rent when he lived in Mario's basement? Old CBA, but same principle.

Sid, you're late with that $500 rent cheque...

 

[Fugu]

Didn't Crosby have to pay "reasonable" rent when he lived in Mario's basement? Old CBA, but same principle.

Sid, you're late with that $500 rent cheque...

I think it was a wing of the Lemieux mansion Sid got to inhabit, not the dungeon.


(Or is he still there? Last we checked, I think he was still living there. )

 

[Riptide]

I think it was a wing of the Lemieux mansion Sid got to inhabit, not the dungeon.


(Or is he still there? Last we checked, I think he was still living there. )

I thought his house was finished last year (apparently took 3 years to build). But it's just down the block from Mario's.

 

[Fugu]

I thought his house was finished last year (apparently took 3 years to build). But it's just down the block from Mario's.

No idea, to be honest. I just rely on the Pens fans to keep us updated.