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How Close Are The Numbers?

from James Mirtle of the Globe and Mail,

It is all in the numbers.

As ridiculous and unnecessary as the NHL lockout seems even at a casual glance, the closer and harder you look at the numbers involved, the less this costly stalemate makes sense.

Here we have two parties that made a combined four proposals last week and moved some $600-million or so closer together over the next five or six years.

continued

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J.J. from Kansas's avatar

And like I said, the way you figure ‘cut’ is the way a government figures ‘cuts’.

That example you used was garbage.

Like your goal scoring analogy.

Posted by J.J. from Kansas on 10/26/12 at 09:06 PM ET

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As in, less of an increase.

No. 

57% equals 57%.  That is a 0% increase.

50% equals 50%.

50% is a CUT from 57%.  There is no way to argue that 50% equals 57%, because it is not.  50 and 57 are clearly not the same, and 50 is and will always be less than 57.  It’s simply math.  57-50=7.  See how that works?

Whether there is 0% growth or 124393034034% growth, when the PA makes 50% of it, that is less than if they were making 57% of it.

That, dear sir, is a cut.  And it does not disappear, because with the NHL’s proposal, the PA would be getting the same percentage, and that percentage is less than they currently get.

Another way of saying that would be to say that the PA’s percentage has bee “cut” from 57 to 50.

That difference doesn’t “disappear”.

57>50

Get it?

The NHL took in $3.3B this year with a 57/43 split, and the PA got $1.881B, right?

Well if, at the end of the new CBA with a 50/50 split, the NHL takes in $3.762B then the PA will get $1.881B, right?

Well guess what?  That is a cut from what the percentage they are currently getting.  57% of $3.762B is $2.144B.

Do you see how the cut doesn’t disappear?  Do you see how the PA would be making less at a 50/50 split than they would at a 57/43 split?

Do you see how that is a cut?  Do you understand that 1.881 is less than 2.144?

DO YOU UNDERSTAND THAT 50 IS LESS THAN 57?

Posted by Garth on 10/26/12 at 09:07 PM ET

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That example you used was garbage.

It is precisely on point.

50% is a CUT from 57%.  There is no way to argue that 50% equals 57%, because it is not.

Which number results in less money for the players:

1) 50% of 4 B.

2) 57% of 3.5 B.

That’s the portion of this math you aren’t quite getting, Garth.  50% of a larger number most certainly does equal or exceed 57% of a smaller number.

This is why I say a pay cut ‘disappears’ over time.  In raw dollars it does.  Are NHL players making less now than they were before the last lockout?  Of course not.

But… how could this be?  Wasn’t their pay viciously cut 24%?

That is the benefit of being in a sport that usually grows at a fairly consistent rate.  Over time in terms of real dollars a cut in percentage can be washed out by a growth in the amount being split because there is never any increase in the number of players on the receiving end of their split.

 

Posted by HockeyinHD on 10/27/12 at 02:57 AM ET

J.J. from Kansas's avatar

It is precisely on point.

So…. when you used an expected pay RAISE and then hypothetically lowered that RAISE and called it a cut, it’s analogous to anything in this entire conversation how? That example was garbage.

Player salaries aren’t based on raw figures, they’re based on a percentage.  If you lower that percentage, you have cut their pay. If the percentage does not raise back to where it was prior to that cut, the cut has not disappeared.

Everybody understands what you’re saying and how when you switch back-and-forth between how you’re counting money you get to your conclusion. It’s just using a less-honest explanation to define a term than is needed.

...much like how when the league defines HRR as a net of direct costs and then compares their percentage favorably to leagues which do not use those same definitions.

Posted by J.J. from Kansas on 10/27/12 at 08:55 AM ET

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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.

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