Kukla's Korner Hockey
by Paul on 07/25/05 at 10:03 AM ET
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.
Be the first to comment.
Add a Comment
Please limit embedded image or media size to 575 pixels wide.
Most Recent Blog Posts
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 email@example.com