The players of the NHL are ''seriously in debt'' - Radio-Canada (CBC) Article

[ForeverHabs97]

Les joueurs de la LNH sont sérieusement endettés | Coronavirus

Very interesting article by Martin Leclerc I read in french.
Quick translation for you;

''According to information across the league, the players still ''owe'' 600 million dollars to the owners. It will take lots, and lots of time to erase this debt.''

''It's the reason why, despite the publicly reserved expressions by members of the NHLPA in the last week or so, it's likely that both parties are willing to put all of their efforts to present playoffs.''

Explanation: Before the pandemic stopped the NHL season March 12th, the league was headed towards 5.09 billion dollars earned in 2018-2019. With the CBA set at 50/50, the players were assured 2.5 billion in salary.

Up until now, the players had earned 2.36 of that 2.5 billion. They decided to wait before cashing in their remaining 140 million dollars of the season.

THE PROBLEM: 1.2 billion dollars of revenue are currently missing, due to the revenue not earned from the playoffs I'm assuming. Therefore, the article states the players owe 600 million to the owners. Their debt may be even a little heavier because the television broadcasters and sponsors did not obtain all of their games that appeared in their contract for the duration of the season. Teams may need to negotiate reimbursements or compensations with their partners.

Solution: By giving up their last paycheck, the players would erase a quarter of their debt. By having playoffs with empty stands, they would be able to reimburse another 150 million. (Estimation of a 300 million revenue in this article)

This would leave 300 million to reimburse to the owners. They will have to negotiate on wiping this debt clean.

The article continues by saying with the uncertainty of the fans being present at the arenas due to Covid-19 and the actual start date (maybe January) of the season 2020-20201, the revenue needed to reimburse the owners may be harder to come by.

Conclusion: The owners and the players will do everything they can to present playoffs starting in august in order to help erase their estimated 300 million dollar debt to the owners.

Click to read more...

 

[LadyStanley]

By not taking their final (4/15) paycheck, the players have put $120m into escrow, of the estimated $600m-ish of lost revenue (from RS).

There's a whole twitter thread posted from LeBrun or similar on this.

 

[mouser]

Les joueurs de la LNH sont sérieusement endettés | Coronavirus

Very interesting article by Martin Leclerc I read in french.
Quick translation for you;

''According to information across the league, the players still ''owe'' 600 million dollars to the owners. It will take lots, and lots of time to erase this debt.''

''It's the reason why, despite the publicly reserved expressions by members of the NHLPA in the last week or so, it's likely that both parties are willing to put all of their efforts to present playoffs.''

Explanation: Before the pandemic stopped the NHL season March 12th, the league was headed towards 5.09 billion dollars earned in 2018-2019. With the CBA set at 50/50, the players were assured 2.5 billion in salary.

Up until now, the players had earned 2.36 of that 2.5 billion. They decided to wait before cashing in their remaining 140 million dollars of the season.

THE PROBLEM: 1.2 billion dollars of revenue are currently missing, due to the revenue not earned from the playoffs I'm assuming. Therefore, the article states the players owe 600 million to the owners. Their debt may be even a little heavier because the television broadcasters and sponsors did not obtain all of their games that appeared in their contract for the duration of the season. Teams may need to negotiate reimbursements or compensations with their partners.

Solution: By giving up their last paycheck, the players would erase a quarter of their debt. By having playoffs with empty stands, they would be able to reimburse another 150 million. (Estimation of a 300 million revenue in this article)

This would leave 300 million to reimburse to the owners. They will have to negotiate on wiping this debt clean.

The article continues by saying with the uncertainty of the fans being present at the arenas due to Covid-19 and the actual start date (maybe January) of the season 2020-20201, the revenue needed to reimburse the owners may be harder to come by.

Conclusion: The owners and the players will do everything they can to present playoffs starting in august in order to help erase their estimated 300 million dollar debt to the owners.

A couple notes on the numbers:
- The players would actually be due about 2.42B in salary, less then the 2.5 in the article. This is because non-salary compensation of around $130m is included in the player share.

- The players have been paid more then $2.36B this season before the final paychecks. They were on target to lose something like 10% in escrow. So the paid amount was probably somewhere on the order of $2.6-2.7B including final paychecks.

 

[StreetHawk]

A couple notes on the numbers:
- The players would actually be due about 2.42B in salary, less then the 2.5 in the article. This is because non-salary compensation of around $130m is included in the player share.

- The players have been paid more then $2.36B this season before the final paychecks. They were on target to lose something like 10% in escrow. So the paid amount was probably somewhere on the order of $2.6-2.7B including final paychecks.

What's the best option for players, money wise?

Is it better to finish this season, and start 20-21 around Xmas to NYD to get in around 50 games, with hopefully full arenas? What is the impact of the SB money due to players on July 1 who were able to get it in their contract to protect against a potential lockout.
Or is it better to call an end to this season and hope that by October they get in a full season with fans?

There's no guarantee when fans will be able to return to the arena or how many can return, be it 30% to 75% or 100%. No way to know in the next few weeks.

Players are in various different financial situations, as well as places in their careers. Guys into their 30's, if they have made good money, likely want playoffs to win a Cup. Boarder line NHLers would likely want the most money IMO.

 

[mouser]

What's the best option for players, money wise?

Is it better to finish this season, and start 20-21 around Xmas to NYD to get in around 50 games, with hopefully full arenas? What is the impact of the SB money due to players on July 1 who were able to get it in their contract to protect against a potential lockout.
Or is it better to call an end to this season and hope that by October they get in a full season with fans?

There's no guarantee when fans will be able to return to the arena or how many can return, be it 30% to 75% or 100%. No way to know in the next few weeks.

Players are in various different financial situations, as well as places in their careers. Guys into their 30's, if they have made good money, likely want playoffs to win a Cup. Boarder line NHLers would likely want the most money IMO.

The core problem is players were paid more in salaries then revenue is going to support in 2019-20. Completing the playoffs even without fans in attendance would probably generate more revenue then any other option, but still leave the players owing money back to the teams.

If revenue comes in short again in 2020-21 due to restricted fan attendance or other factors it’s gonna be a double hit on the players with another massive escrow. Their salaries for 2020-21 are mostly locked in.

From the players POV, whatever reasonable compromise that results in the NHL generating the most possible revenue is the best option, both this season and next season.

The second part would be what negotiations the PA wants to consider with the NHL? Ideally the PA would prefer the NHL forgive some portion of the 50% split—meaning the players effectively get more then 50% for some period. The NHL isn’t likely to do that unless some concessions are received in turn. Another option the PA might be interested in is somehow spreading the shortfall over multiple seasons—i.e. players get more then 50% over some period now but less then 50% in future years to compensate.

The revenue issue is big enough that it probably makes sense to include it as part of negotiating the next CBA. The main problem with doing so for the PA is that it starts the PA off at a disadvantage compared to the current CBA—which is not how a party usually wants to conduct negotiations. The NHL will want concessions beyond what otherwise may have happened in the next CBA in return for the PA getting more then 50% or some extended deferral.