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2012 CBA Negotiations Thread

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Interesting;

Chris Botta ‏@ChrisBottaNHL

Bettman says revenue sharing "will not break or break this deal" and sides are close enough on that issue. Big issue is contracts.
Retweeted by Spector's Hockey

Seems the owners are really pushing to save themselves from themselves. 
 
Some stuff on new NHL proposal:

Darren Dreger ‏@DarrenDreger

NHL proposed a 6 year term today. Players Share: 2012/13 - 51.6% 2013/14 - 50.5% 2014/15 - 49.6% 2015/16 - 50% 2016/17 - 50% 2017/18 - 50%

Darren Dreger ‏@DarrenDreger

I'm told league proposal reduce financial "ask" tabled in first proposal by $460 million including, by $120 million in Year 1.

Chris Johnston ‏@reporterchris

First three years of NHL proposal are delinked from HRR, the last three are at 50% (with a redefinition of HRR).

Darren Dreger ‏@DarrenDreger

Proposed Salary Caps: all projected and fixed: 2012/13 - $58M 2013/14 -$60M. 2014/15-$62M. 2015/16-$64.2M. 2016/17 - $67.6M 2017/18 - $71.1M

 
Nik? - PAN said:
cw said:
The reality is, according to your circular reasoning, the owners like lockouts because it's just a heck of a lot of fun - money is no object

That's not my reasoning. That's essentially a verbatim quote from the owner of the Buffalo Sabres.

Well then, since Terry Pegula is effectively using your handle to post his argument on TMLfans.ca - not "(your) reasoning", be sure to let him know we'd be happy to set him up with his own handle.  ::)

Because if you posted it, it's you making the argument using his quote - not Pegula. And your argument is circular unless you can make the case that this lockout is not about money from the owners perspective.

Is Pegula typical of the NHL owner? Unless you can post 15 more different owners taking the same position to substantiate your claim, you're once again cherry picking a minority and trying to use that to characterize the entire league. You did make that claim on the entire league with: "That's a statement that represents something real about NHL owners" ("owners" plural)

Secondly, if you were to ask Pegula:

"Which do you prefer:

a) blowing bunches of your $3 billion fortune underwriting a competitive NHL team that lost money 11 of 12 straight years before you bought them, typically without with a top 10 payroll and usually around the middle of the pack or lower in payroll

or

b) as you likely discussed with Bettman during due diligence before you bought the Sabres, a new CBA that minimizes you having to lose bundles of your fortune just to ice a competitive team with a moderate payroll?"


Which of those two do you think Pegula and any other owners you want to imagine that "don't care about money" would prefer? Rhetorical question.

So even with Pegula's quote, you're effectively deriving a position for him - a position that isn't likely to be a valid one nor a logical one for him to take.

This is a big argument about money. If the owners are willing to lock the players out, as most people expect they are and as they did in 2005, it's a pretty serious argument with a bunch of owners who must care about money in a pretty serious way. They typically didn't get rich not caring about money.
 
Nik? - PAN said:
cw said:
So the players have recognized and accepted the NHL's financial problem and the NHL's numbers to some considerable extent by offering right out the gate to take a cut in pay.

Again, that only holds true assuming the fairly naive premise you're operating under that holds that these deals aren't dictated by leverage.

If the owners elect to lock the players out, the cost of the lockout to the owners of the 17 teams in 2011 who lost money (and the many teams who lost money in the prior seasons) is rather questionable relative to what they can expect to lose in the upcoming seasons if things don't change. They're going to lose money either way. That probably also applies to four more clubs barely making a profit.

If the owners proceed with a lockout, it's by no means a mindless and cheap adventure to the owners. They still have some admin salaries to pay. Still have a bunch of expenses/contracts they have to continue to  pay like the rent for the rink for example, etc. And they have close to zero revenue coming in. So ignoring the impact on future ticket sales a lockout might have, the owners still lose a fair amount of dough with a lockout. The owners have to be in a pretty rotten financial position contractually with their union to consider such an extreme thing as a lockout.

Now if the owners were making all kinds of wild and crazy profits, I don't think it's unreasonable to suggest that the owners feelings on this would be considerably different: a lockout would cost them big bottom line profits on top of a lack of revenue to pay expenses during the lockout. A lockout is considerably more costly to the owners if they're making big profits as opposed to big losses.

This so called "leverage" you raise is heavily dependent on the financial circumstances between the two parties. If the shoe was on the other foot with the owners making big profits, the players would have considerably more leverage to threaten a strike. Because in that situation, the owners have much more to lose and the players likely more to gain than the circumstances we're looking at today.

Such is the nature of collective bargaining and leverage. This is nothing terribly new in collective bargaining.

The leverage you complain about does contribute to underscore the owners financial plight in the CBA arrangement they currently have with their players. Beyond the financial numbers, the existence of owner leverage to the degree it exists today helps to substantiate the owners CBA grievance with their union.

And so this assertion:
Nik? - PAN said:
Again, that only holds true assuming the fairly naive premise you're operating under that holds that these deals aren't dictated by leverage.

is simply not true.

The players can recognize the leagues financial problems while also recognizing the increase in leverage that the NHL's financial problem provides to the owners - who have less to lose in a lockout due to those financial problems.
 
A cap hit of 58M would be interesting for next year - 16 teams are over that number, according to cap geek. Even if folks were traded, and every single team carried 58M, there's 33M more in signed contracts as of today than could be traded/distributed amongst all teams.

So - there would need to be some mechanism to help teams bring that number down - either through one-time don't count buyouts or what have you. I suppose teams could also waive players, but still - look at a team like the Wild - they would have some tough decisions to make...
 
Yes, the teams with the largest contracts(cap hit wise) would have the hardest time with a reduced cap(if we're assuming the buyout method is in place).
 
Omallley said:
A cap hit of 58M would be interesting for next year - 16 teams are over that number, according to cap geek. Even if folks were traded, and every single team carried 58M, there's 33M more in signed contracts as of today than could be traded/distributed amongst all teams.

So - there would need to be some mechanism to help teams bring that number down - either through one-time don't count buyouts or what have you. I suppose teams could also waive players, but still - look at a team like the Wild - they would have some tough decisions to make...

Rollback? Perhaps a combination of that and buyouts, like they did last time, IIRC.

The Wild are a team I was hoping the Leafs could exploit somehow, there aren't a lot of players on their roster that would be useful and expendable from Minny's pov, but there are a couple.
 
cw said:
Which of those two do you think Pegula and any other owners you want to imagine that "don't care about money" would prefer? Rhetorical question.

http://sports.espn.go.com/nhl/news/story?id=6147411

"Starting today, there will be no financial mandates on the Buffalo Sabres hockey department,"

"Starting today," Pegula said, "the Buffalo Sabres' reason for existence will be to win a Stanley Cup."

On Tuesday, he was asked whether he viewed his purchase of the team as a business venture. ..

"If I want to make some money, I'll go drill a gas well," the founder and former president of the energy company East Resources Inc. responded.

You're free to obfuscate all you want but those are his words. Those represent something about his interests here. The idea that a NHL owner would not look at his hockey team as a particularly important financial enterprise, that they would prioritize things other than their profitablity and that they would often ignore the better business instincts that led them to vast wealth in other less glamourous businesses in favour of winning hockey games is not something that any serious student of the game or it's history would dispute.

I don't doubt that if you ask anyone a hypothetical where on one side there's making money and on the other there's losses that anyone would choose to make money provided that there are no other considerations. That, however, is a meaningless adventure in strawman construction that you're engaging in. The proper hypothetical here is asking owners to prioritize the importance in their lives that their hockey team's profitability matters to them and the extent to which that guides their decision making process. Not just in the isolated moments where they can cry poor and threaten to disrupt a hockey season but in the day to day operation of their franchises.

They typically didn't get rich not caring about money.

Is Pegula typical? Absolutely not. For one, I'd have to say that he's spectacularly, aytpically honest about his motivations for purchasing a hockey team.

But I also didn't say that Pegula was typical or that every owner was the same. I said that he represented "something real" about NHL owners(which, you'll notice, is just a plural) and that something real is that in addition to a financial component to owning a hockey team, which the various teams look at with varying degrees of importance, there is also a competitive aspect to it and for that reason you can't simply compare their balance sheets to the balance sheets of a manufacturing firm or a steel company and pretend that the owners look at them that way. Whether it's a case like Pegula where he seems more concerned with the pure pursuit of sport or it's a case like in Philadelphia or New York where a team's balance sheet is just a tentacle on a much larger operation this is not a typical business and it does not add anything to the discourse to cover our eyes and pretend it is. 

So whatever you want to call it whether it's a competitive interest or however you want to describe the situation in New York or even in Toronto where our gigantic, potentially billion dollar Maple Leafs were recently referred to by their owner as a "public trust" that is something that matters when we're looking at a league's finances. The amount it contributes to a balance sheet? That's something that the players should not pay for even if it results in a ROI that simply wouldn't cut it if we were looking at a hedge fund. It has a value and, if you're going to maintain the charade that this is in anyway something that is going to revolve around "fairness" needs to be accounted for in some way.

I mean, if you're going to sit there and deny that many people who own sports teams do so out of sporting, rather than financial, pursuits, then you are simply denying reality and its you who are deriving positions from owners that run directly into the teeth of their own words.
 
cw said:
Now if the owners were making all kinds of wild and crazy profits, I don't think it's unreasonable to suggest that the owners feelings on this would be considerably different: a lockout would cost them big bottom line profits on top of a lack of revenue to pay expenses during the lockout. A lockout is considerably more costly to the owners if they're making big profits as opposed to big losses.

Then explain the NFL's position on their own CBA from last year. They seemed no less willing to lock out players in pursuit of a significantly larger percentage of the revenue generated by their sport. By your own account those two leagues were in substantially different financial positions. How do you reconcile that?

cw said:
This so called "leverage" you raise is heavily dependent on the financial circumstances between the two parties.

Oh I absolutely agree with that. Just not in the way you're presenting it. What dictates the leverage is that the owners, basically all of them, are not financially dependent on the NHL operating. Even the most profitable ones. 

The players are. Most of the players, in part because they tend not to be good with money and in part because it's just the realities of the amounts they're paid, experience a major shift in how they live if they're not getting an NHL paycheck.

That determines leverage. It's making the other guy sweat. It's like the Seinfeld routine. The power in a relationship is always going to be held by whoever needs the other person less.

cw said:
The players can recognize the leagues financial problems while also recognizing the increase in leverage that the NHL's financial problem provides to the owners - who have less to lose in a lockout due to those financial problems.

Oh absolutely. They could. But that is never, ever going to be what dictates how a CBA process goes.

Look at the EPL. If a league's financial circumstances were going to dictate how it went then the bigger soccer leagues would have had massive CBA battles long ago that made drastic differences to their contractual relationships with their players. But if you look at big soccer leagues they're essentially unregulated financially by their CBAs and many of them are just absolute sinkholes in terms of profitability with the concept of competitive balance not existing.

Do I think Roman Abromovich "doesn't care about money"? Or the Sheikh of Abu Dhabi? No. I'm sure they're big fans of money. I bet they'd, given the question you posed to me in your other post, also choose for their teams to be profitable.

But they run their clubs as sporting pursuits and in addition to the fact that they've benefitted competitively from the way their leagues are organized the leverage that I'm talking about just doesn't exist for them. By most accounts Manchester City lost money last year that would make the Phoenix Coyotes look like friggin' Apple Computers in terms of an investment. And those are the big teams. By all accounts the idea of the smaller teams making money is just about unheard of.

So what scenario do you think is more likely if Manchester City and Chelsea decided to lock their players out and present their woeful balance sheets as proof of their need to cut wages?

Do you think soccer players would sit down and say "Man, that Sheikh of Abu Dhabi sure does have it tough. We can't just sit here and expect to operate Man City like it were a charity organization. We should give him back some money."

Or would they say "Eff it. I'm going to go play for Barcelona."

That is leverage.
 
Tigger said:
Omallley said:
A cap hit of 58M would be interesting for next year - 16 teams are over that number, according to cap geek. Even if folks were traded, and every single team carried 58M, there's 33M more in signed contracts as of today than could be traded/distributed amongst all teams.

So - there would need to be some mechanism to help teams bring that number down - either through one-time don't count buyouts or what have you. I suppose teams could also waive players, but still - look at a team like the Wild - they would have some tough decisions to make...

Rollback? Perhaps a combination of that and buyouts, like they did last time, IIRC.

The Wild are a team I was hoping the Leafs could exploit somehow, there aren't a lot of players on their roster that would be useful and expendable from Minny's pov, but there are a couple.

The league's proposal did not include an across-the-board reduction (or "rollback") to existing contract values. Necessary adjustments would be financed entirely from a combination of modified contracting practices, increases in league-wide revenue and from the players' Escrow contributions.

http://www.tsn.ca/nhl/story/?id=404044
 
Potvin29 said:
The league's proposal did not include an across-the-board reduction (or "rollback") to existing contract values. Necessary adjustments would be financed entirely from a combination of modified contracting practices, increases in league-wide revenue and from the players' Escrow contributions.

http://www.tsn.ca/nhl/story/?id=404044

Thanks Potvin, I realize the cap ceiling isn't really an issue for the league in terms of how teams will adjust ( compared to the % of revenue at least ) but it seems odd not to include that. Maybe that's just because of the team I cheer for...
 
Tigger said:
Potvin29 said:
The league's proposal did not include an across-the-board reduction (or "rollback") to existing contract values. Necessary adjustments would be financed entirely from a combination of modified contracting practices, increases in league-wide revenue and from the players' Escrow contributions.

http://www.tsn.ca/nhl/story/?id=404044

Thanks Potvin, I realize the cap ceiling isn't really an issue for the league in terms of how teams will adjust ( compared to the % of revenue at least ) but it seems odd not to include that. Maybe that's just because of the team I cheer for...

Possibly an amnesty clause like the NBA put in their deal, ability to demote to the AHL would probably have to continue and then they could allow Burke`s pet idea of being able to trade a player and pay a portion of the salary vs. the whole thing having to be paid by the receiving team.

The Leafs would be ok under these scenarios since we have at least two contracts nobody would miss if they were jettisoned via the above methods, but a few teams would have some hard choices. 
 
Potvin29 said:
The league's proposal did not include an across-the-board reduction (or "rollback") to existing contract values. Necessary adjustments would be financed entirely from a combination of modified contracting practices, increases in league-wide revenue and from the players' Escrow contributions.

http://www.tsn.ca/nhl/story/?id=404044

I wonder how that would effect a guy like Weber who would then in effect be earning more than 20% of his team's cap limit in year 1.
 
I'm sure not all the details have emerged but in the league's latest proposal is there anything with regards to the maximum length of contracts?  Or did they just do away with that fight already?
 
Erndog said:
I'm sure not all the details have emerged but in the league's latest proposal is there anything with regards to the maximum length of contracts?  Or did they just do away with that fight already?

* BUMP *

Sgt said:
Interesting;

Chris Botta ‏@ChrisBottaNHL

Bettman says revenue sharing "will not break or break this deal" and sides are close enough on that issue. Big issue is contracts.
Retweeted by Spector's Hockey

Seems the owners are really pushing to save themselves from themselves.
 
Corn Flake said:
Tigger said:
Potvin29 said:
The league's proposal did not include an across-the-board reduction (or "rollback") to existing contract values. Necessary adjustments would be financed entirely from a combination of modified contracting practices, increases in league-wide revenue and from the players' Escrow contributions.

http://www.tsn.ca/nhl/story/?id=404044

Thanks Potvin, I realize the cap ceiling isn't really an issue for the league in terms of how teams will adjust ( compared to the % of revenue at least ) but it seems odd not to include that. Maybe that's just because of the team I cheer for...

Possibly an amnesty clause like the NBA put in their deal, ability to demote to the AHL would probably have to continue and then they could allow Burke`s pet idea of being able to trade a player and pay a portion of the salary vs. the whole thing having to be paid by the receiving team.

The Leafs would be ok under these scenarios since we have at least two contracts nobody would miss if they were jettisoned via the above methods, but a few teams would have some hard choices.

One free buyout would be great, a la the NBA amnesty ( which they did back in 04/05 in their own way, right? ). How does Burke's idea work in terms of cap commitments, does the team trading for the player get the whole hit? That could be interesting for some cap floor teams if so.
 
I am not very well read on these negotiations. I have been so busy at work that I can barely keep up at all.

For people that are keeping up with these negotations are they more optomistic or pessimistic right now about the season starting on time.
 
Fanatic said:
I am not very well read on these negotiations. I have been so busy at work that I can barely keep up at all.

For people that are keeping up with these negotations are they more optomistic or pessimistic right now about the season starting on time.

Hard to say from what's coming out in the media, posturing and such, personally I hope the season starts on time but I wouldn't be surprised if it doesn't.
 
Ihope they make ajustments with revenue sharing so that teams that are losing money with little hope of ever being profitable are not using revenues to sign players. Players that teams that make money are in essence paying there salaries. Ie losing money and still paying up to the cap limit. Say they have a lower cap limit.
 
The owners deals strike me as have their cake now, and have their cake again later.  They cut down on the sharing percentage of revenue, but also have the cap inflate to a point that will continue to make the bottom feeding teams not profitable so they can claim poor again next contract negotiation.

To me, the best way to have a system, would be a two-way soft cap with hard cap ceilings.

Say each team must spend at least 35M on salary.  But if you spend less, you sacrifice draft pick compensation or something like that.
Then on the high end put a soft figure at say 50+ million and then a hard limit at 60M and have a luxury tax for the 50+ million salary.  That money would then go to teams that have an operating loss AND have spent less than the 50+ million dollar level in salary so you aren't just offsetting the losses for a team being stupid with their spending budget.

Of course a plan like that wouldn't happen though because it would rely on a team being realistic about their operating budget and actually trying to work around the financial realities of their current location.
 
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