News Article: the Avery rule

[eco's bones]

Some people never go away and that's okay. At least for me. Anyway I thought this article was interesting. If nothing else it shows that the Rangers take care of their players. I don't think every team treats their players as well as ours does and as much as I'm not a fan of Jimmy Dolan that is too his credit.

http://www.theplayerstribune.com/the-new-avery-rule/

Click to read more...

 

[Krams]

Nice article. I like Dolan as an owner, and this is further confirmation.

 

[wolfgaze]

Umm he says that the players do not receive 95% of their stated salary? If the agent's fee is around 3%, what the heck is accounting for that other 22% that leads Avery to say that 25% goes to "agent and management fees"

?????

I'm having a hard time believing this....

$13 million in salary equates to $660K in actual take home pay?

 

[wolfgaze]

I like that part about drinking booze on the plane after wins and some coaches revoking that privilege after losses, LOL....

 

[Vidic15*]

Damn, I'm jealous. These guys are pampered.

 

[jniklast]

Umm he says that the players do not receive 95% of their stated salary? If the agent's fee is around 3%, what the heck is accounting for that other 22% that leads Avery to say that 25% goes to "agent and management fees"

?????

I'm having a hard time believing this....

$13 million in salary equates to $660K in actual take home pay?

Yeah that can't be true. For instance I'd think escrow goes off before taxes and likewise you can deduct management expenses. And if you pay a quarter of your pre tax salary for agents and management, you do something wrong.

 

[wolfgaze]

Also why am I not surprised that Avery writes an article and the text is interrupted by wallpaper-sized images/photos of himself...

 

[Gardner McKay]

Umm he says that the players do not receive 95% of their stated salary? If the agent's fee is around 3%, what the heck is accounting for that other 22% that leads Avery to say that 25% goes to "agent and management fees"

?????

I'm having a hard time believing this....

$13 million in salary equates to $660K in actual take home pay?

No. If he makes 2.4 million a year, $660k is take home pay. 50% of 2.4 is 1.2. 22% of that leaves roughly 660k. On a 5 year contract 2.4 mil a year equates to 12 million, not 13.2 million. Take home pay would be 3.3 million roughly (for the life of the contract). The math behind it is a little fuzzy and he doesn't do a very good job of explaining.

 

[jniklast]

No. If he makes 2.4 million a year, $660k is take home pay. 50% of 2.4 is 1.2. 22% of that leaves roughly 660k. On a 5 year contract 2.4 mil a year equates to 12 million, not 13.2 million. Take home pay would be 3.3 million roughly (for the life of the contract). The math behind it is a little fuzzy and he doesn't do a very good job of explaining.

Yes that's more realistic. He does however explicitly say that it's the 13.2 million (5.5 years of 2.4 million salary) becoming 660k and that it's the money for the next 50-60 years. That's why it's so confusing.

 

[nyrleetch]

Also why am I not surprised that Avery writes an article and the text is interrupted by wallpaper-sized images/photos of himself...

It's how we know he actually wrote the article!

I still miss Avery, what a character, especially pre Torts Avery. That guy was great to watch.

 

[eco's bones]

No. If he makes 2.4 million a year, $660k is take home pay. 50% of 2.4 is 1.2. 22% of that leaves roughly 660k. On a 5 year contract 2.4 mil a year equates to 12 million, not 13.2 million. Take home pay would be 3.3 million roughly (for the life of the contract). The math behind it is a little fuzzy and he doesn't do a very good job of explaining.

His math is actually correct if you go by his career average for an NHL player of 5 and a half years then--you'd add in a half year at 1.2 mil to the 12 mil for 5 years.

Anyway the idea of having no alcohol on the plane or bus afterwards if the team lost would turn a lot of people mean. I'm thinking a lot of Sabres and Oilers are underaged as it is--their travel though must be some really sobering experiences.

 

[NoQuitInNewMexico]

I'd imagine smaller market teams that are closer to the margins are worse with that kind of stuff than the Rangers, Leafs, Habs etc - obviously with exceptions on both sides for particularly tight/spendthrift owners

 

[wolfgaze]

No. If he makes 2.4 million a year, $660k is take home pay. 50% of 2.4 is 1.2. 22% of that leaves roughly 660k. On a 5 year contract 2.4 mil a year equates to 12 million, not 13.2 million. Take home pay would be 3.3 million roughly (for the life of the contract). The math behind it is a little fuzzy and he doesn't do a very good job of explaining.

That's not what he's saying in the article:

"So really, that $13.2 million becomes $660,000"

He's not saying $660K per season is the take home pay, he's saying $660K is the total take home pay on the entire $13.2 million!

He said:

50% goes to taxes
25% goes to 'agent and management fees'
20% goes to escrow (some of which may be returned to the players?)

5% of 13.2 mil = $660K

Does that not seem completely ridiculous that a player's stated salary of $2.4 mil for 5 years and he only walks away with $660K in his pocket out of that $13.2 mil?

I don't buy it...

 

[Inferno]

That's not what he's saying in the article:

"So really, that $13.2 million becomes $660,000"

He's not saying $660K per season is the take home pay, he's saying $660K is the total take home pay on the entire $13.2 million!

He said:

50% goes to taxes
25% goes to 'agent and management fees'
20% goes to escrow (some of which may be returned to the players?)

5% of 13.2 mil = $660K

Does that not seem completely ridiculous that a player's stated salary of $2.4 mil for 5 years and he only walks away with $660K in his pocket out of that $13.2 mil?

I don't buy it...

the 20% number usually goes back, at least most of it..and the 25% to management and agents seems extremely high.

 

[Machinehead]

I like Avery and I do like the message: telling young players to not blow their first contract because you never know. But I do think he's exaggerating.

 

[eco's bones]

You can see why players don't like the escrow. I was under the impression that agents usually took 10%.

The agent and management fees are 5 times what the player actually pockets?

 

[aufheben]

I wasn’t a fan of the old “Avery Rule,” which the NHL invented after I screened New Jersey goalie Martin Brodeur in the playoffs in 2008 by facing him directly (it wasn’t against the rules and I thought it was quite inspired, but the league disagreed). In any case, in order to explain my new Avery Rule, here’s a little of my own rather scary financial history.

Does Avery still do those post-game podcasts? rofl

 

[jerseyjinx94]

I really just want this guy to go away at this point. Loved him when he was a Ranger. But I just can't stand him now.

 

[wolfgaze]

Whatever happened to RangerBoy? I feel like he could explain this salary breakdown for us....

 

[Bacon Artemi Bravo]

This is the dumbest article I have read in a while.

1. So he said the average NHL career is 5 years. That would be $62k that you would save using the "Avery rule" not 124k.

2. The highest federal tax rate is 39.6%, and let's be real here. There are plenty of perfectly legal tax strategies out there that are utilized by millionaires all the time. The article should have been about that, if anything.

3. Agent fee's were 3%....but somehow management and agent fees add up to 25%? Don't buy it.

4. He suggesting saving $62k to make up for $12.34m of lost money.


I understand the point of the article, but to make the main theme to save your $96 a day, doesn't make sense.

 

[HatTrick Swayze]

25% to management/agents is absolutely inflated.

20% to escrow is not necessarily lost. If revenues come in as projected players get 100% back, and to lose the full 20% would mean that revenues missed their targets by 20%. With the bulk of HRR coming from pre-negotiated TV deals and a known capacity of ticket sales (know the amount of games & seats & their prices...only variable is attendance rate which shouldn't be THAT hard to model) it should not be hard to get that number pretty right. It is true that during the season your paycheck is 20% lower than it otherwise would be. Would be curious to see what % historically players do lose though.

Nice read though. Interesting tidbits about how players are treated.

 

[HatTrick Swayze]

This is the dumbest article I have read in a while.

1. So he said the average NHL career is 5 years. That would be $62k that you would save using the "Avery rule" not 124k.

2. The highest federal tax rate is 39.6%.

3. Agent fee's were 3%....but somehow management and agent fees add up to 25%? Don't buy it.

4. He suggesting saving $62k to make up for $12.34m of lost money.


I understand the point of the article, but to make the main theme to save your $96 a day, doesn't make sense.

Federal + state / local can easily get to 50% in an NHLer's tax bracket. I mean ultimately his point is don't take anything for granted and per diem adds up. Which is fair enough...I agree some of his math is very sketchy.

 

[Bacon Artemi Bravo]

Federal + state / local can easily get to 50% in an NHLer's tax bracket. I mean ultimately his point is don't take anything for granted and per diem adds up. Which is fair enough...I agree some of his math is very sketchy.

I am not sure there is a state tax bracket that hits 11%, and there are some states with no tax at all. Not sure what kind of refunds are offered at the highest bracket, but I am sure there are plenty of strategies for these guys to use.

I also understand/agree about not taking anything for granted, but still, suggesting 62k makes up for 12.34m in any way at all is kind of insane.

 

[Uglybstrd]

My favourite Ranger ever, loved him as a player, esp. pre-Torts.

 

[Hunter Gathers]

I hope his financial advisor didn't help him write the article.