Kukla's Korner Hockey
Get Out Your Calculator
by Paul on 07/25/05 at 10:03 AM ET
Comments (0)
Jed Ortmeyer, the winger who will earn $501,600 with the Rangers this year, is almost certainly going to be obligated to subsidize the $4.9M salary of Washington goaltender Olaf Kolzig under terms of the NHL's revenue-sharing formula contained in the CBA, The Post has learned. Actually, the term "revenue-sharing" does not appear in the CBA. Rather, the 19-page Article 49 of the CBA defines what is commonly understood as revenue-sharing as, "Player Compensation Cost Redistribution System." It's a complex system under which the league's top 10 revenue-producing clubs will be responsible for redistributing a defined sum to the NHL's bottom 15 revenue-producers, with certain limited exceptions. But here's the kicker. Not only will the top 10 revenue-producing clubs have that responsibility, players who play on those teams will also have to pay into the system through use of their escrow deductions if the total league compensation exceeds 54 percent of the gross revenues. The objective of this, uh, revenue-sharing program is to provide the bottom half of the league with the means to hit a targeted compensation level that will be unilaterally established by the league at between $4-8M (plus $2.2M in team benefits) over the team compensation floor. The formula for payouts will be determined by figuring 54 percent of a team's individual hockey-related revenue (HRR) and measuring that against both the minimum and target compensation levels.
Filed in: | KK Hockey | Permalink
Comments
Be the first to comment.
Add a Comment
Please limit embedded image or media size to 575 pixels wide.
Add your own avatar by joining Kukla's Korner, or logging in and uploading one in your member control panel.
Captchas bug you? Join KK or log in and you won't have to bother.
Most Recent Blog Posts
Video- Quite The Conversation Between Tortorella And A Linesman
Video- Rangers Win In OT To Force Game 5 In Boston
Video- Bad Goal Of The Night Candidate
Six Teams In Playoff Action Tonight
“Kane Comes To Play Every Night”
TiqIQ Ticket Preview: Senators vs. Penguins
Patrick Roy Returns To Denver As Head Coach
Diving Talk Heats Up In The LA/SJ Series
Video- Dalton Thrower Suspended For The Remaining Games Of The Memorial Cup
About Kukla's Korner Hockey
Paul Kukla founded Kukla’s Korner in 2005 and the site has since become the must-read site on the ‘net for all the latest happenings around the NHL.
From breaking news to in-depth stories around the league, KK Hockey is updated with fresh stories all day long and will bring you the latest news as quickly as possible.
Email Paul anytime at pk@kuklaskorner.com
