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NHL Lockout With Your Cock Out |OT|

Fei

Member
What did I miss? All I see is that, THANKFULLY, the NHL is planning to punish teams that have the cap-circumventing deals by forcing that cap hit to remain on the books for the entire duration of the contract. Where do they say they're going to up the cap hit on players?

Yeah, actually I think I misinterpreted McKenzie's tweet about punishing the teams with front-loaded contracts. My bad.
 

Smiley90

Stop shitting on my team. Start shitting on my finger.
Well I'm not sure, they created the contract that Nashville matched ? Dunno how that would work.

The contract is signed between Nashville and Weber though, Philly has nothing at all to do with that contract anymore. I don't know why they'd have to carry anything from that? Or am I misunderstanding you?
 
I'll add it to the list of things I don't care about.

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Bob McKenzie ‏@TSNBobMcKenzie

Any existing deal in excess of 5 yrs would carry cap hit in every year of contract, even if player were to retire with year(s) left.

Bob McKenzie ‏@TSNBobMcKenzie

In other words, the benefit clubs thought they were getting by reducing AAV with back-diving deals/bogus end yrs would be reduced/negated.

Bob McKenzie ‏@TSNBobMcKenzie

Sorry I lied. Important note on back-diving contracts (BDC). If player traded, then later in deal retires, original club on hook for cap hit

Would the Flyers be on the hook if Carter or Richards retired early because they signed them to those contracts?
 

Socreges

Banned
So then the likelihood of Luongo being traded would remain exactly the same.

Hard to believe that if he were to retire at the age of, let's say, 39... when he's making just $1.6 for that season... the Canucks would suddenly eat a $5.6m cap hit for three seasons just because Luongo decided he doesn't want to continue playing. Fucking ouch.
 

Smiley90

Stop shitting on my team. Start shitting on my finger.
So then the likelihood of Luongo being traded would remain exactly the same.

Hard to believe that if he were to retire at the age of, let's say, 39... when he's making just $1.6 for that season... the Canucks would suddenly eat a $5.6m cap hit for three seasons just because Luongo decided he doesn't want to continue playing. Fucking ouch.

That's kinda confusing though. Hypothetical situation, a team has salary committed to the cap, season starts. Then one of their ex-players (or multiple ex-players) decide to retire halfway through the season, suddenly the team has 10 MIO more salary and is over the cap. Will they be forced to suddenly trade away 10 mio worth of players halfway through the season to get back under the cap or what oO
 

Socreges

Banned
That's kinda confusing though. Hypothetical situation, a team has salary committed to the cap, season starts. Then one of their ex-players (or multiple ex-players) decide to retire halfway through the season, suddenly the team has 10 MIO more salary and is over the cap. Will they be forced to suddenly trade away 10 mio worth of players halfway through the season to get back under the cap or what oO
It doesn't have to be confusing just because you make up a hypothetical situation that would never happen.

Mid-season 'superstar' retirements are very rare, there aren't that many relevant players, and the cap hit would be halved if half the season had already passed.

But yes, if Luongo were to suddenly retire mid-season (instead of just waiting until the summer to announce his retirement as normally happens) then the Canucks would be on the books for a $2.5M cap hit and, if they were at or near the ceiling, would have to make an immediate trade or roster adjustment in order to be compliant.
 

Socreges

Banned
It's moot. There's no way the PA allows that clause to go through anyway.
You're right actually. I was thinking the PA wouldn't mind it since only the teams would suffer... but of course that just means that there's less cap space to pay for players generally if they're having to cover retired ones. And they needs their monies.

:D
 

Plinko

Wildcard berths that can't beat teams without a winning record should have homefield advantage
Bob McKenzie ‏@TSNBobMcKenzie
One of most interesting aspects of NHL proposal is aimed at punishing clubs more than players, with regard to existing back-diving deals.

Bob McKenzie ‏@TSNBobMcKenzie
Any existing deal in excess of 5 yrs would carry cap hit in every year of contract, even if player were to retire with year(s) left.

Sounds like it's not grandfathered, teams with long contracts are going to have to bend over.

Detroit will be screwed for a decade. Thanks, Holland!
 
Hate to go all Socreges here but, if you'll look at your post from June:



So you're clearly stating you expect the players share to INCREASE a touch, not go down to 50/50.

Fair. I was WAY more optimistic then and the owners hadn't gone full retard yet. Not many employers can claim "We're losing money!" while simultaneously bringing in record profits. Fucking Phoenix.

EDIT: I'm still saying my point of "They're making to high a profit to cut into the actual season" prediction was right. We're gonna get 82 games.
 

DopeyFish

Not bitter, just unsweetened
Fair. I was WAY more optimistic then and the owners hadn't gone full retard yet. Not many employers can claim "We're losing money!" while simultaneously bringing in record profits. Fucking Phoenix.

EDIT: I'm still saying my point of "They're making to high a profit to cut into the actual season" prediction was right. We're gonna get 82 games.

PROFITS != REVENUE

Holy shit business isn't your strong suit

To help you understand

Revenue is the money incoming before expenses
Profit is the money incoming after expenses
Players money is the primary expense
Revenue goes up, expenses go up

The primary increase for the NHL revenue was the Canadian dollar. Why? Because they are Canadian businesses that pay in USD, while all their revenue is in CDN

So when the Canadian dollar goes from 65 cents per every US Dollar to price parity they are technically bringing in more USD wise but... It rocketed the cap even though revs weren't technically increasing... It was the exchange rate. It was always the exchange rate. So what happened was American markets, which had fairly minimal revenue change ended up having huge caps and the Canadian teams are the only ones really profiting.
 
PROFITS != REVENUE

Holy shit business isn't your strong suit

To help you understand

Revenue is the money incoming before expenses
Profit is the money incoming after expenses
Players money is the primary expense
Revenue goes up, expenses go up

The primary increase for the NHL revenue was the Canadian dollar. Why? Because they are Canadian businesses that pay in USD, while all their revenue is in CDN

So when the Canadian dollar goes from 65 cents per every US Dollar to price parity they are technically bringing in more USD wise but... It rocketed the cap even though revs weren't technically increasing... It was the exchange rate. It was always the exchange rate. So what happened was American markets, which had fairly minimal revenue change ended up having huge caps and the Canadian teams are the only ones really profiting.

What the fuck are you talking about? How do expenses go up solely from revenue going up? If you hold expenses steady and revenue goes up then profits go up! The bottom line here is that AS A LEAGUE profits went up. A lot. But the league won't acknowledge that because a segment of the league (Coyotes, etc.) are losing money. HOWEVER, the profits of the other teams still outstrip the losses of the losing teams. THIS IS WHY REVENUE SHARING IS IMPORTANT!

I've regularly said that if the PA was negotiating with each team individually you would have a point. Unfortunately they don't because the NHL has a protected monopoly. The thing is that if the NHL had kept the 57% THEY STILL WOULD HAVE MADE A PROFIT. Phoenix wouldn't have. Columbus wouldn't have. Those are shitty management decisions. Read the Deadspin article on Bain's attempted acquisition. Those teams would have been the first to go because they are just money sinks. The NHL is doing the equivalent of throwing money into a fire by keeping those teams around, and yet still manages to produce a league wide profit. Somehow that's the players' fault?

EDIT: You're right that the exchange rate had an effect, but that's rather irrelevant if you implement rev sharing to create more parity. Bottom line here is that the league should not be allowed to bargain as one labor unit but not one economic unit because the rich owners gouge the players for gains without really helping out the poorer teams.
 

Fei

Member
I'm just reading through this article on the Edmonton arena situation. I had no idea about any of this - your owner sounds like a huge douche who is bending over the city. Living in Buffalo, I can completely relate (not referring to Pegula <3, but the Bills owner is all about exploitation as well). Fuck this guy.
 
Revenue goes up, the cap goes up, so the floor goes up, so teams have to spend more money.

Still same percentage though. And if you're not spending to the floor then you can keep it perfectly level. It's all the same percentage of revenue. So your rev/cost ratio is the same. Again this wouldn't be a problem if they just had revenue sharing.
 

DopeyFish

Not bitter, just unsweetened
Still same percentage though. And if you're not spending to the floor then you can keep it perfectly level. It's all the same percentage of revenue. So your rev/cost ratio is the same. Again this wouldn't be a problem if they just had revenue sharing.

But it's an average across the entire league where Canadian teams were the only one to gain via exchange rate

So expenses went up (for all american teams) while the revenue of teams didn't really go up- all that happens with the exchange rate is the Canadian teams expenses went down

As I have shown before

Canadian teams are paying a ton less than in 2004 (leafs spent like 2012 equiv of $120 million)

But US teams revenue is seeing minor increase, but not enough to offset the explosion in player costs

Does it make sense to you, yet?

The Canadian dollar is the primary reason for the revenue increase, not some magical newfound interest in the game as much as I wish.
 
But it's an average across the entire league where Canadian teams were the only one to gain via exchange rate

So expenses went up (for all american teams) while the revenue of teams didn't really go up- all that happens with the exchange rate is the Canadian teams expenses went down

As I have shown before

Canadian teams are paying a ton less than in 2004 (leafs spent like 2012 equiv of $120 million)

But US teams revenue is seeing minor increase, but not enough to offset the explosion in player costs

Does it make sense to you, yet?

The Canadian dollar is the primary reason for the revenue increase, not some magical newfound interest in the game as much as I wish.

I still fail to see how a robust revenue sharing program DOESN'T fix this. Canadian teams are gaining from the exchange rate, but they'd also be contributing more because they'd be contributing in American dollars to the rev sharing pool.
 

DopeyFish

Not bitter, just unsweetened
I still fail to see how a robust revenue sharing program DOESN'T fix this. Canadian teams are gaining from the exchange rate, but they'd also be contributing more because they'd be contributing in American dollars to the rev sharing pool.

So now... The cap was put in to save the canadian teams- and now that the 7 teams are profiting wildly for the first time in 20 years, you want to take away that profit?

Say that you do- then what? everyone breaks even or earns what? $5-10 mil a year? Who is going to pay for new arenas? Cities? Look outside, the economy is so screwed up- who would invest in places like Dallas, Colorado, Anaheim, San Jose when they need new arenas? Anaheim and San Jose currently have the oldest arenas in the league.

You have to think logically here instead of blindly pampering towards the players deluded point of view.

These are businesses, and right now outside of the top 10... They aren't very profitable
 
So now... The cap was put in to save the canadian teams- and now that the 7 teams are profiting wildly for the first time in 20 years, you want to take away that profit?

Say that you do- then what? everyone breaks even or earns what? $5-10 mil a year? Who is going to pay for new arenas? Cities? Look outside, the economy is so screwed up- who would invest in places like Dallas, Colorado, Anaheim, San Jose when they need new arenas? Anaheim and San Jose currently have the oldest arenas in the league.

You have to think logically here instead of blindly pampering towards the players deluded point of view.

These are businesses, and right now outside of the top 10... They aren't very profitable

I'm not being deluded. I think that when the LEAGUE is profitable all teams should be profitable and when it ISN'T then all teams should feel the pain. If the league wants to reap the financial benefits of being able to act as a cohesive unit then the teams should be more financially linked. They are not traditional independent businesses. They function in a monopoly market where they artificially set prices and have a market that is interdependent on eachother. Costs and profits should be shared to a certain degree because they're allowed to play outside traditional rules of a market economy.
 

DopeyFish

Not bitter, just unsweetened
I'm not being deluded. I think that when the LEAGUE is profitable all teams should be profitable and when it ISN'T then all teams should feel the pain. If the league wants to reap the financial benefits of being able to act as a cohesive unit then the teams should be more financially linked. They are not traditional independent businesses. They function in a monopoly market where they artificially set prices and have a market that is interdependent on eachother. Costs and profits should be shared to a certain degree because they're allowed to play outside traditional rules of a market economy.

Hey guys! Every teams star player should make more than the team that pays them!

(This is exactly what you're suggesting)
 

DopeyFish

Not bitter, just unsweetened
Yeah its called negotiations, of course they won't accept the first deal, they will take the next 7 days to get more out of the deal.

The most important thing if they use this offer as the base to a final contract and negotiate off it.

This is the NHLs 4th offer, not the first
 

Cake Boss

Banned
"@DarrenDreger: Some believe union should have tabled a proposal last week. Instead, union now has to work with the NHL offer and face public scrutiny."

Ha motherfuckers, if you didn't take 3 months to make a 2nd offer you wouldn't be in this position.

"@PerryBullock: CNN Confirms CBS: 58-40% in Romney’s favor on Economy; 49-46 R healthcare; 51-44 R taxes; 59-36 R on Deficit."

Also Brent Sopelol just retweeted this, it all makes sense now.
 
Guns are bad
Evolution is real
Gay marriage everywhere
Abortions for everyone
Miniature flag pins for no one

But I like my mini flag pin :(

Sounds great.

I can see that if you walked into where I work now, that you would probably jump out a window with such distaste (going by this post and the one about David Booth hunting).

Also, NHL news, I was looking at the full proposal and I noticed they had a section on re-entry waivers for players playing overseas (meaning they don't have to go through re-entry waivers), would have been nice to have that when we signed Nabokov. :/
 
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