Thursday, September 13, 2012
Nitty-gritty details of NHLPA proposal
By Pierre LeBrun
Wednesday's NHLPA offer broken down a little:
FIRST THREE YEARS OF PROPOSED AGREEMENT Total payroll is fixed at $1.91 billion in Year 1, $1.98 billion in Year 2 and $2.10 billion in Year 3; effectively, 2 percent, 4 percent and 6 percent raises.
FINAL TWO YEARS If revenue doesn’t adequately grow: NHL option to extend 2 more years at a payroll of $2.1 billion
If revenue skyrockets: NHLPA option to extend 2 more years at $2.1 billion plus 57 percent of new revenue only in years 4 & 5
If revenue falls between, as is likely, automatically extended 2 more years as follows:
Year 4 = Year 3 share + 54 percent of hockey-related revenue growth in Year 4
Year 5 = Year 4 share + 54 percent of hockey-related revenue growth in Year 5
The players' offer fluctuates based on revenue growth.
Example: based on historical revenue growth of 7.1 percent a year, the players' share would start at 54.3 percent in Year 1 and phase down to 52.3 percent in Year 5.