Tuesday, September 18, 2012

The NHL and NHLPA are at odds over a very small difference in overall revenue. Worse yet, neither side seems to be telling the truth about the potential growth that is inherent in all these revenues. We've heard that 7% has been the annualized growth in revenues over the past several years. Assuming a drop to 6% growth this year and 5% growth in each of the next three years with a possible rebound to similar levels down the road, the pile of money these people are arguing about is absurd. I take you to my simple chart below. Year 0 is today, $3.3 Billion split between the players at 57% and the owners at 43%. I've arbitrarily set growth in year 1 at 6%, year 2 at 5% etc, all the way to year 6, the hopeful length of this next CBA. Next I chose a players percentage that while less than the 57% they get now but more than the 50% (or so) the owners are asking for. Notice that when the growth of 6% is factored in, the players get the SAME share as they did last season. In year 2 the players share drops to 52% yet given a growth rate of 5% they get MORE than they got last year. Then in year's 3 and greater, the players share is 50%. And by the end of year 6, the players share is 420 Million more than they got last year. All these numbers come form a spreadsheet I am happy to send to anyone that sends me a request via Twitter @solutionsRDB

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