Question about Player Compensation Ranges (Salary Cap)

Discussion in 'Fugu's Business of Hockey Forum' started by Brain Hemorrhage, Dec 29, 2005.

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  1. Brain Hemorrhage

    Brain Hemorrhage Registered User

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    I was researching collective bargaining possibilities for a fantasy league I am running when I came across this snippet from the St. Louis Blues website:

    I then wondered, if each club has to pay its players between 32 and 42 million, what is the point of "maximum Player Compensation from 54% to 55% of League-wide Revenues and guarantees that Players will receive a minimum payment of 53% of League-wide Revenues"? Don't they both regular how much the players can make? For instance, is every team paid their players 42 million that would be 30*42 million. What if that number is greater than 55%?
     
  2. Captain Ron

    Captain Ron Registered User

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    That is what the escrow account is for. At four different times during the year the league will determine player's salaries versus projected revenues. If the player's salaries are exceeding the 54% level then the league will withhold a certain percentage of the player's salary in an escrow account. If at the end of the year the players salaries do infact exceed the alloted percentage then the league will get to keep what is in the escrow account and divide the money according to the rules set forth by the new CBA. If the players salaries do not exceed the 54% level then they are refunded all of the money withheld.
     
  3. kdb209

    kdb209 Registered User

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    That stlouisblues.com story was NOT about the current CBA which has 54% linkage and a salary range of $21.5M to $39M.

    That story is from back in February (note the 050202 in the URL - 2/2/05) and is refering to the leagues last linkage offer before the season was canceled.

    The terms in the stlouisblues.com story match those in the leagues Feb 2 proposal:

    http://www.nhl.com/nhlhq/cba/archive/news/nhlproposal020205.html
     
  4. Brain Hemorrhage

    Brain Hemorrhage Registered User

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    I am aware. I said I was researching collective bargaining possibilities and did not say I was only interested in the final agreement between the NHLPA and Board of Owners.
     
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