Kukla's Korner Hockey
by Paul on 09/24/12 at 03:15 PM ET
from James Mirtle of the Globe and Mail,
... And the answer to how to settle this thing is with a new agreement neither side is going to like all that much.
Step 1: Let the players keep the $1.87-billion they earned last season – and not a penny more.
The union’s offer comes with a 2 per cent raise in Year 1, but it’s become clear in negotiations that that’s just not going to fly.
And the league wants players to take a big pay cut via escrow next season that won’t work either.
The players have dug in on this one, and it’s really not too much to ask in Year 1 of the deal. If NHL revenues grow at 6.3 per cent (which is roughly what they’ve averaged the last eight years minus the effects of the Canadian dollar), that $1.87-billion will drop the players’ share to 53.6 per cent.
And it’ll slowly trail down from there.
Step 2: Allow the players small raises of 3 per cent annually between Years 2 and 5. That’s salary growth that should easily be outstripped by revenue growth.
Basically what that means is that if revenues grow at 6.3 per cent a year, the players’ share would decline from 53.6 per cent to 52.0, 50.4, 48.8 and 47.3 over the first five years of the agreement.
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 firstname.lastname@example.org