By making some concessions in their acceptance of the owners’ proposal for increased HRR, the players could counter with this new shared revenue system that will ultimately lead to a higher salary cap ceiling and higher salaries for the players in the long run.
Thursday, 20 September 2012
Lockout - 09/20/2012
The NHL is again locked out, and the owners and NHLPA do not appear to be anywhere close to coming to an agreement. Preseason games have been cancelled, becoming the first victim of the five-day old lockout. This isn’t a surprise and was a very real possibility all offseason. Recent lockouts in the NBA and NFL have shown that players are willing to do whatever it takes in order to take their economic fight to the owners of their respective leagues. The disagreement between the NHLPA and the league isn’t one that can be easily explained but can be broken down into one basic concept. Players want higher salaries and more of the money owners and the league are pocketing from Hockey Related Revenue (HRR). Owners, though, have offered players even less of what they were making. As the deadline for talks approached, the owners put an offer on the table to the NHLPA of 46 percent shared HRR as opposed to the 57% they were already receiving. In addition, the league wants to redefine what counts as HRR. That will effectively cut the players’ salaries by 20-22%, according to Sports Illustrated.
That leads us to revenue sharing and how it can help bolster the struggling franchises of the NHL, as it did for Major League Baseball. Revenue sharing is the best method for the league to account for the struggling franchises and allow for better parity and competition throughout the league. It will also help address salary cap expansion issues in order to make the players happy by allowing for a higher cap ceiling. However, successful and lucrative franchises are not likely to be on board with an increased revenue sharing system in the league. They’re already not keen on the existing, low-revenue sharing system in place. The NHLPA has to be firm and return an equally drastic counteroffer in which they try to shift some of the demands more in their favor while incorporating a boost in the revenue sharing system that will encourage the mid- and low-level owners' participation.
By making some concessions in their acceptance of the owners’ proposal for increased HRR, the players could counter with this new shared revenue system that will ultimately lead to a higher salary cap ceiling and higher salaries for the players in the long run.
By making some concessions in their acceptance of the owners’ proposal for increased HRR, the players could counter with this new shared revenue system that will ultimately lead to a higher salary cap ceiling and higher salaries for the players in the long run.
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