Question about CBA and salary

Discussion in 'Fugu's Business of Hockey Forum' started by Arktos, Oct 14, 2013.

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  1. Arktos

    Arktos Registered User

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    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.
     
  2. Riptide

    Riptide Registered User Sponsor

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

    Arktos Registered User

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

    mouser Business of Hockey

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    No also, from Article 26 No Circumvention

     
  5. IME

    IME Registered User

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    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
     
  6. Fugu

    Fugu Administrator

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    Prohibition by whom-- government or leagues?
     
  7. IME

    IME Registered User

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    The CBA

     
  8. Fugu

    Fugu Administrator

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    Thank you.
     
  9. MarkGio

    MarkGio Registered User

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    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?
     
  10. Riptide

    Riptide Registered User Sponsor

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

    IME Registered User

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    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.
     
  12. MarkGio

    MarkGio Registered User

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    If it was proven, sure
     
  13. PensBeerGeek

    PensBeerGeek Registered User

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    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?
     
  14. danishh

    danishh Registered User

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

    MarkGio Registered User

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    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.
     
  16. Arktos

    Arktos Registered User

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    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.
     
  17. Riptide

    Riptide Registered User Sponsor

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    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.
     
  18. kdb209

    kdb209 Registered User

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    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.

    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.

     
  19. kdb209

    kdb209 Registered User

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    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).
     
  20. BoltSTH

    BoltSTH Registered User

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    Didn't Crosby have to pay "reasonable" rent when he lived in Mario's basement? Old CBA, but same principle.
     
  21. Major4Boarding

    Major4Boarding 1944 - 2018

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  22. Riptide

    Riptide Registered User Sponsor

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

    Fugu Administrator

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    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. :help:)
     
  24. Riptide

    Riptide Registered User Sponsor

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

    Fugu Administrator

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

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