Salary Cap: Escrow is a Dirty Word in NHL Dressing Rooms
- Thread starter KINGS17
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KINGS17
Smartest in the Room
- Apr 6, 2006
- 32,582
- 11,767
There is no profiteering. The owners and the NHLPA have a CBA which limits salaries to 50% of HRR. There are no guaranteed profits for the owners, only cost when it comes to player salaries as they relate to revenue. The other expenses of the owners are not limited.
I think you better look up the definition of profiteering.
KINGS17
Smartest in the Room
- Apr 6, 2006
- 32,582
- 11,767
I will apply it to NHL players. As a player in the NHL a CBA was accepted to limit total salaries to 50% of HRR. This can either be accepted as a means to keep all franchises stable and healthy, or we can go back to the old system and the league can contract, teams will fold and players will lose their jobs.
Legionnaire
Help On The Way
Raccoon Jesus
We were right there
Can you imagine what kind of shit show it would be if everyone got paid out first then at the end of the year someone had to tax/collect that money back once they got the revenue numbers?
Legionnaire
Help On The Way
Legionnaire
Help On The Way
KINGS17
Smartest in the Room
- Apr 6, 2006
- 32,582
- 11,767
Your boss comes to you and your 1,000 or so co-workers and says,
"We have a product here which generates $5 billion in revenue. I propose giving you the employees $2.5 billion to split up any way you like as long as no single employee receives less than 0.85% of the revenue, and no single employee can receive more than 20% of the revenue. After providing a pool of 50% of the revenue for employee salaries, the franchise owners will then be responsible for paying all other operating expenses out of the 50% of the revenue the business generates. At the end of the year after all of the revenue is collected we will settle up and make sure the split is 50/50. To ensure either side will collect their 50% share, an escrow account will be created to pay the side which received less than their 50% share."
Yeah, the man is really ripping off the employees here.
You want to go back to the old system? Fine, then expect 8-10 teams to fold, the Kings will go back to being non-competitive in terms of having a high payroll, and a few teams bankrolled by owners who don't look at it as a business will have teams that dominate every season. I seriously doubt the rank-and-file players want that, because around 220 NHL players, and even more minor league players will be out of a job.
Legionnaire
Help On The Way
Raccoon Jesus
We were right there
Lt Dan
F*** your ice cream!
dude you are on fire todayTell that to Evander Kane's financial advisors
Are you that one guy that likes losing an hour of sleep?
Raccoon Jesus
We were right there
so what happens to the cap next year if Corona Virus makes it so NHL games are played in empty stadiums. TV revenue would still be there but the gate and concession revenue would be lost. I could see it playing out.
