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Report: Why salary rollback is inevitable

Posted by Landon Ewaniuk on August 21, 2012 at 3:35 PM

When the NHL, in its initial proposal to the union, requested that the percentage of revenue due to the players be slashed from the existing 57 percent to 46 -- a figure that would move closer to 43 percent once the owners narrow the definition of "hockey-releated" income -- the NHLPA was predictably outraged. So it wasn't surprising when Players' Association chief Donald Fehr responded with a plan that would allow his constituents to keep most of the money due to them in their existing contracts.


But the truth is, the players will be lucky to get 50 percent of league revenues whenever the new CBA is eventually hammered out, not after NBA and NFL players agreed to reduce their share of income to 50 and 47-percent, respectively, in their own labor disputes last fall.

 


"There is NO WAY the players remain above 50-percent of revenues given that (1) over half the leagues teams (according to Forbes NHL Valuations for 2011-12) were losing money, and (2) much wealthier, popular leagues such as the NFL and NBA have severely reduced their players share of league revenues," writes Patrick Rishe on Forbes.com. "Hockey owners and Commissioner Gary Bettman dont want to lose another season and risk alienating their fan base once again. But I suspect that they have the intestinal fortitude to lock players out for a significant length of time unless the players accept a revenue model that mirrors the NFL and NBA."

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There is no doubt in my mind, the National Hockey League is looking at the numbers outlined in reports like this one and thinking this is what we need.  If hockey does not follow a similar model sadly, this would lead to a lockout. I completely agree with Patrick.

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