The New Proposal's Numbers

Discussion in 'Fugu's Business of Hockey Forum' started by ArizonaGreenTea, Feb 10, 2005.

Thread Status:
Not open for further replies.
View Users: View Users
  1. ArizonaGreenTea

    ArizonaGreenTea Registered User

    Joined:
    Sep 8, 2004
    Messages:
    1,185
    Likes Received:
    0
    Trophy Points:
    0
    With the kickback the player's salaries would be at 52% (going by Forbes' numbers). That's a thin margin, but assuming that this is a negotiation, it's a reasonable starting point.

    Current Average for the top three teams (Detroit, New York, Dallas) is 77 million. After the 24% rollback it beomes 59 million.

    Current Average for the bottom three teams is 30 million (Nashville, Minnesota, Florida), after the rollback it is 33 million.

    At a difference of 44% the NHL's previous proposal was automatically triggered. Why would they start negotiations at a point where it would automatically kick in their cap proposal?


    Three teams over 42 million, with a 24% percent rollback that would mean that at most three teams would be at or above 55 million in player expenses, nine teams are above that mark. Another condition that easily kicked it in for the owners.

    According to the Forbes report the players accumulated 1.5 billion in salaries. So after the reduction the players make 1.14 billion in revenue. Divide by thirty and 38 million revenue per team! One out of four ain't bad, right?

    I hope my numbers are wrong, but if they aren't Bettman did something I thought was beneath him. It makes me sick to even think I supported the owners.

    I used the Forbes report to verify the numbers, if someone wishes to use the Levitt Report, fine. Though I sincerly doubt it would cast a brighter light on the proposal.

    http://www.forbes.com/2004/11/10/04nhland.html
     
  2. chiavsfan

    chiavsfan Registered User

    Joined:
    Mar 15, 2004
    Messages:
    4,426
    Likes Received:
    0
    Trophy Points:
    0
    Occupation:
    Radio News Director
    Location:
    Chicagoland, IL
    Home Page:
    There is so much more to numbers that people don't know. Remember that about a quarter of the league is still unsigned. So the numbers could vary at the start of any season
     
  3. ArizonaGreenTea

    ArizonaGreenTea Registered User

    Joined:
    Sep 8, 2004
    Messages:
    1,185
    Likes Received:
    0
    Trophy Points:
    0

    While that is true, it requires a big leap of faith to assume that the numbers will be significantly lower, and the differences much smaller by the start of the next season.
     
  4. chiavsfan

    chiavsfan Registered User

    Joined:
    Mar 15, 2004
    Messages:
    4,426
    Likes Received:
    0
    Trophy Points:
    0
    Occupation:
    Radio News Director
    Location:
    Chicagoland, IL
    Home Page:
    I'm not saying that you are wrong...not by a long shot. I am just saying that there are still a lot of unknown numbers, so you could be. Even you admitted that you could be.

    That's all, not trying to spam, or flame you
     
  5. SENSible1*

    SENSible1* Guest

    The trigger points were negotiable and more importantly showed the PA the leagues bottom line issues. They were not designed to be adopted, but merely to facilitate the negotiation process.
     
  6. Levitate

    Levitate Registered User

    Joined:
    Jul 29, 2004
    Messages:
    25,991
    Likes Received:
    899
    Trophy Points:
    169
    are you using last years payroll numbers? cuz new york doesn't have anything close to a $77 million payroll at the current moment. granted, they have to sign more players if a season starts, but still not nearly enough to bump their payroll that high, especially after a 24% rollback. it'd be under $40 million after the rollback right now i believe...in fact it's at about $44 million right now, and that's including all of jagr's paycheck (which isn't all paid by the rangers)
     
  7. chiavsfan

    chiavsfan Registered User

    Joined:
    Mar 15, 2004
    Messages:
    4,426
    Likes Received:
    0
    Trophy Points:
    0
    Occupation:
    Radio News Director
    Location:
    Chicagoland, IL
    Home Page:
    Levitate,

    Thats why I brought up the numbers argument. They can change in an instant
     
  8. Mr Sakich

    Mr Sakich Registered User

    Joined:
    Mar 8, 2002
    Messages:
    8,901
    Likes Received:
    56
    Trophy Points:
    146
    Location:
    Motel 35
    Home Page:
    in order for the league plan to work, there may have to be a dispersal draft for teams with current payrolls that are too high. Another option is to make current contracts which exceed a certain amount ( say 4 mill per year) non-guaranteed for this year only. This would allow the talent to be distributed amongst the league and the payrolls to even out.

    In these scenarios, it would be very easy for a tema like detroit to get to 42 mill per year. It would also cause some of the lower salary teams to pick up a few star players and increase their payroll.
     
  9. barnburner

    barnburner Registered User

    Joined:
    Apr 23, 2004
    Messages:
    567
    Likes Received:
    0
    Trophy Points:
    0
    The numbers were a proposal. Bettman said the nhl was willing to negotiate the triggers. Goodenow rejected the idea of trying his own proposal for 2 reasons:
    1. The 24% rollback was never anything more than a negotiating ploy and a pr move.
    2. He knew it would not fix the fiancial problems of the league, leaving them with the cap.

    If this doesnt get settled in time to salvage this season - either the NHLPA will have a new leader this time next year, or the association will be broken.
     
Thread Status:
Not open for further replies.

Share This Page

monitoring_string = "358c248ada348a047a4b9bb27a146148"