kerrly said:
I'm not happy that the deal didn't get done, and last night was not too happy with Bettman. But since then I've carefully studied the NHLPA's proposal and I now see it for exactly what it is. Its not just the numbers that are keeping them apart, its the loopholes that Goodenow tried to sneak into the proposal.
Bingo. I wish the media (and even Gary in his PC) had made more of this.
I hate to be a sadistic, bestial, necrophile, that would be beating a dead horse but again:
Read the details of the last NHLPA - the numbers aren't nearly as close as has been talked about.
Yes the starting point ($49M) is only $6.5M away from the owners number - but read point #7 of Goodenow's letter:
7. Indexing of Tax Rates and Payroll Minimums & Maximums All dollar amounts would be in place for 2004-05 (pro-rated) and 2005-06. Dollar levels for tax rates, payroll minimums & maximums for subsequent years either constant or increased by % change in greater of either hockey related revenues or only the gate receipts and broadcasting segments of hockey related revenues from the 2005-06 base year.
The players want linkage after all - but only when it's in their best interest. They want all the upside of linkage, without any of the risks of declining revenue.
And best of all, they pick 2005-06 as their base year, when everyone knowns revenues will be down, coming off the lockout and shortened season. It's not a bad guess that revenues next year may be down 10-20%. Over the course of the 6-yr deal, it would not be unreasonable to see revenues grow 20-30% from their 2005-06 lows, so that $49M cap is really a 63.7M cap by year 6 (not including the 10% exceptions - $70M+) - over %50 greater than the last offer.
On top of that, they get to pick the most advantageous deninition of revenue growth - either all reveunu or just gate & broadcasting, whichever works out better for them.
Quote:
NEW CBA DEAL POINTS
1. Term - 6 full seasons (through 9-15-11).
2. CBA System Incorporation of NHLPA December 9, 2004 proposal into the recently expired CBA, with indexing of financial provisions (per diems, etc.) at 2% per year, with the following additional changes requested by the NHL yesterday:
(a) Increased salary arbitration rights for Clubs -- to be agreed upon. Salary arbitration available after Player leaves Entry Level System.
(b) Cap on Exhibit 5 Individual B Performance Bonuses -- to be agreed upon.
(c) Replace NHLPA Revenue Sharing Plan with NHL Revenue Sharing Plan to share at least $88M in each year of the Agreement. Clubs may credit any payroll taxes paid against their revenue sharing contribution.
3. Team Payroll Limit - $49M in salary and bonuses
4. Minimum Team Payroll - $25M (each team can fall no more than 10% below only twice during term).
5. Minimum Player Salary - $300K (as per NHL Proposal)
6. Payroll Taxes - $40M - $43M (25%)
$43M - $46M (50%)
$46M - $49M (75%)
$49M - $53.9M (150%) only twice per team during 6 year term
7. Indexing of Tax Rates and Payroll Minimums & Maximums All dollar amounts would be in place for 2004-05 (pro-rated) and 2005-06. Dollar levels for tax rates, payroll minimums & maximums for subsequent years either constant or increased by % change in greater of either hockey related revenues or only the gate receipts and broadcasting segments of hockey related revenues from the 2005-06 base year.
8. 2005 Playoffs 55% of playoff revenues to be paid to Players for the 2005 playoffs.
