The New Proposal's Numbers

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ArizonaGreenTea

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Sep 8, 2004
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League-wide Player Compensation exceeds 55 percent of League-wide hockey revenues; or

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.

The average of Club Payroll for highest three Payroll Clubs in the League is more than 33 percent higher than the average of Club Payroll for the lowest three Payroll Clubs in the League

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?


Any three Clubs each have Club Player Compensation in excess of $42 million

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.

League-wide average Player Compensation per Club exceeds $36.5 million.

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
 

ArizonaGreenTea

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chiavsfan said:
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


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.
 

SENSible1*

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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.
 

Levitate

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Jul 29, 2004
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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)
 

Mr Sakich

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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.
 

barnburner

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Apr 23, 2004
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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.
 
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