DownFromNJ
Registered User
- Mar 7, 2004
- 2,536
- 2
I hate to cite a shameless plug, but I just wrote this in my blog:
Blog
This is by no means a scientific assessment, but I don't find the numbers unreasonable. The NHLPA just doesn't make sense...
That makes no sense. Why? Well, assuming every single team spent every single extra cent that they could during every year of the CBA, we're talking about 450 million dollars (6 years).
Currently, the NHL players get 1.3 billion in salaries. Assuming they get paid for 1/3 a season (playoffs and 28 games), they will gain 430 million alone this short season. So in essence, the entire sum of their loss during this CBA by taking the owner's deal is equal to the money they would be losing by not playing this season.
Makes no sense, right? Of course, the NHL/PA have made no sense at all in the past few weeks. Personally, I would have taken that 42.5 million the second before Bettman's deadline last week.
Let's take a look at some other numbers. Let's assume that the teams do not spend the full 2.5 million extra per year. Let's but very, very liberal here. Let's assume half of the teams make it to the 45 million dollar cap. That is an extra 37.5 million dollars to the NHLPA per year, or 225 million over the course of the CBA. That is roughly half of what the players would be paid to play this season.
Ok, let's say that the players hold out until January 2006. The owners cave in. They give them something equivilant to their Dec. 9th offer. Let's say it manages to reduce salaries by only 10 percent (as opposed to the ~15% changes that cap offer would present). The players win, right?
Let's assume the owners still have the revenue to pay them that money for six years. The players gain about 65 million dollars per year if they are still paid from that pool of 1.3 billion (or in this case, 10% less). That is 390 million over 6 years. Not only is that less than what the players lose from canceling the final portion of this season, but now factor in another half season canceled. Again, drawing from the 1.3 million figure, another half season is worth 650 million.
Ok, let's really go out on a limb here. Let's assume that the players get their perfect little system back in January 2006. The owners's system would cost them 15% of that 1.3 billion per year, or 195 million per season. The total is 1.17 billion over six years. The cancel the rest of this season and another half, the cost is 1.08 billion. So, in a perfect world, waiting until December is worth about 90 million dollars if they can possibly restore 1) the old system in every way and b) league revenues to prior levels.
Blog
This is by no means a scientific assessment, but I don't find the numbers unreasonable. The NHLPA just doesn't make sense...