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Lockout season's revenue lower than projected


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#1 poetica

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Posted 13 March 2013 - 09:39 AM

Sources: Escrow rate to 20 percent

The NHL and NHL Players' Association have agreed to change this season's escrow rate to 20 percent, sources confirmed to ESPN.com.

That's up from the 10 percent rate both sides had agreed upon in late January shortly after the season began.

The change comes as a result of lower than originally projected NHL revenues for the lockout-shortened season.

That means players, as of this week, will fork over 20 percent of every paycheck into an escrow fund until both the league and NHLPA figure out the final numbers next summer or next fall in terms of hockey-related revenue.

If players' compensation does not go higher than their 50 percent HRR allotment for the season, they will be refunded the escrow payments with interest.

However, if the players' compensation exceeds the 50 percent share, the owners will be paid the escrow money.

The NHLPA has another option if its executive board wishes to dip into the $300 million "make whole" fund, which owners are paying out to players as per the new CBA over the next three years.

The players negotiated the make whole fund as a protection against high escrow eroding their salaries.

Normally in an 82-game season, the two sides review the escrow rate each quarter. But with the shortened, 48-game season, both sides agreed before the season to review revenues and revenue projections throughout the season to determine whether the escrow percentage coming off player checks needs to be changed.

Most years, the players get some of the escrow money back, and sometimes all of it. Here's how the escrow worked out once the final HRR numbers were finalized each season:

2005-06: The net result was that each player earned 104.64 percent of his 2005-06 contract (includes the shortfall and interest). Players' share was 54 percent of HRR.

2006-07: The net result was that each player earned 97.51 percent of his 2006-07 contract. Players' share was 55.6 percent of HRR.

2007-08: The net result was that each player earned 100.66 percent of his 2007-08 contract. Players' share was 56.7 percent of HRR.

2008-09: The net result was that each player earned 87.12 percent of his 2008-09 contract. Players' share was 56.73 percent of HRR.

2009-10: The net result was that each player earned 90.59 percent of his 2009-10 contract. Players' share was 57 percent of HRR.

2010-11: The net result was that each player earned 97.7 percent of his 2010-11 contract. Players' share was 57 percent of HRR.

2011-12: The net result was that each player earned 99.48 percent of his 2011-12 contract. They got back just under 8 percent of the 8.5 percent they paid in escrow during the year. Players' share was 57 percent of HRR.



I for one am happy to hear that, despite the NHL's crowing about revenues and viewership earlier this season, that their bottom line is being more effected than they thought it would be by the lockout. I know in my house we have still not spend a single penny on anything NHL related and will not for this entire season, nor will we accept anything NHL related as gifts. I'm glad to see others are obviously of a similar mindset because it's only by hurting their bottom line that we can truly hope to avoid future work stoppages.
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#2 Scott Hartnell's Mane

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Posted 13 March 2013 - 09:51 AM

This should surprise no one really...I haven't spent a dime on the NHL this season, not even for Center Ice, which I have bought every season since 2001. The casual fans that the NHL won over during the Kings magical Cup run and the growing number (at least it was) of American fans are the ones who they need to be concerned about losing revenue from. Canadian markets will always support their teams...but small market American squads...Columbus, Florida, Phoenix...who weren't doing all that great BEFORE the lockout..are going to be hit hardest by the lack of revenue from this season.
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#3 Stefan

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Posted 13 March 2013 - 09:54 AM

If someone offered you free playoff tickets and you said no. The only person that would be getting punished is yourself.

Edited by Stefan, 13 March 2013 - 10:15 AM.

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#4 BuretoMogilny

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Posted 13 March 2013 - 09:59 AM

Sources: Escrow rate to 20 percent




I for one am happy to hear that, despite the NHL's crowing about revenues and viewership earlier this season, that their bottom line is being more effected than they thought it would be by the lockout. I know in my house we have still not spend a single penny on anything NHL related and will not for this entire season, nor will we accept anything NHL related as gifts. I'm glad to see others are obviously of a similar mindset because it's only by hurting their bottom line that we can truly hope to avoid future work stoppages.



Yup I'm happy to hear it as well. I am pleased to see many fans have stayed away, not as many as hoped but it definitely sends a signal back to the league and players, and question is will the recognize it.

I used to get 1/2 a season of leafs tickets with buddies (don't flame me, i get them to see the OTHER teams, and to ensure I had prime seats for the Nucks, Penguins, Washington, and Montreal). This year I said no and I really started to think about how much money I was wasting on hockey tickets given the prices in Toronto (and I had good seats, so they were damn expensive).

Well I took a look at Vancouver ticket prices this year, and in past years it was nice to come home and pay still alot, but less then Toronto for a lower bowl seat. Well to my amazement, tickets to the Nucks are now pretty close to the leafs at least for the lower bowl.

It doesn't surprise me that you can get tickets from the gate game day now. The NHL has failed to realize, the economy is still in the dumps, they are overcharging their customers, and they just pissed their customers off, who 8 months ago would have been lining up like lemmings to buy tickets.

Good for the fans!
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#5 Starfruits

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Posted 13 March 2013 - 11:16 AM

Yep, I haven't bought any merchandise this year...
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#6 Apple Juice

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Posted 13 March 2013 - 11:18 AM

Wish I had the same strength as you guys :( I totally bit on the 50% merchandise sale and bought two jerseys and I hope I can snag a Millionaires jersey and snapback
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#7 TOMapleLaughs

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Posted 13 March 2013 - 12:18 PM

Zero tickets, zero merch, zero center ice, sportsnet or tsn package.

And frankly, zero interest in returning to my free-spending ways. If i return, it'll be because of my wife, who misses tv coverage far more than I.

And with the way the team is playing lately, i ain't missing much anyway.
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#8 ajhockey

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Posted 13 March 2013 - 01:04 PM

No crap it's gonna be lower. Fans are peeved and many made "oaths" not to support the NHL.
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#9 VancouverStyle

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Posted 13 March 2013 - 01:16 PM

I'm with many of you, i have not spent a dime on any merchandise at all this season.
Many of my co-workers feel the same way, they are die hard Canuck fans and also
refuse to purchase any hockey merchandise.
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#10 poetica

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Posted 13 March 2013 - 01:26 PM

Yup I'm happy to hear it as well. I am pleased to see many fans have stayed away, not as many as hoped but it definitely sends a signal back to the league and players, and question is will the recognize it.
....


It's not that people have stayed away. They haven't. It's been widely reported that the NHL's attendance numbers are actually up this season: "Average attendance at Lightning games is up a tad over last season, and overall league attendance is up over two percent, despite the lockout, which ended less than two months ago." [Source]

Another story put the attendance numbers up by 3.4%.

And the NHL told us during the lockout they didn't expect to lose much as the result of the lockout and actually expected revenue to grow next season over what it was last season. They absolutely took it for granted that we would be back with our wallets open.

But, even if attendance is high if overall revenue is down that would seem to indicate that people are at least forgoing buying merchandise, which is a huge source of profit for the league. It's a good way to make them pay without forcing us to miss out on any more hockey than the lockout already cost us. If the NHL/players never face consequences from unhappy customers, they will continue to take our dollars for granted whenever they want to do another work stoppage. Every successful business has to consider their customers and the NHL has taken its for granted for too long!
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Go, Canucks, Go!
Every single one of them.

Thanks for the memories, Luo! :'(

#11 J.R.

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Posted 13 March 2013 - 01:45 PM

If someone offered you free playoff tickets and you said no. The only person that would be getting punished is yourself.


If someone gave me FREE tickets I still wouldn't be paying anything would I? ;) The league is still making zero additional revenue from my wallet.
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#12 Boudrias

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Posted 13 March 2013 - 02:08 PM

I highly doubt revenue is down because fans are conciously boycotting NHL tickets or products. I am more inclined to think that fans made other choices, particularly in the USA, for their entertainment $s. Hopefully they took up active sports themselves.
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#13 Coconuts

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Posted 13 March 2013 - 02:32 PM

I haven't spent a dime on the NHL, nor do I intend to for a while. They brought this upon themselves.
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#14 Stefan

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Posted 13 March 2013 - 03:01 PM

If someone gave me FREE tickets I still wouldn't be paying anything would I? ;) The league is still making zero additional revenue from my wallet.

Op said he wouldn't accept a gift that's nhl related.
That'll show the nhl!! Decline tickets that were paid for!!! Way to stick it to em!
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Slaves, be subject to your masters with all reverence, not only to those who are good and equitable but also to those who are perverse.



 

#15 c00kies

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Posted 13 March 2013 - 03:21 PM

It's too hard to avoid supporting the NHL. If you go to certain Restaurants, you support them, certain bathrooms, same thing. Just live your normal lifestyle, otherwise the NHL is owning more than your money...
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#16 poetica

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Posted 13 March 2013 - 04:30 PM

Op said he wouldn't accept a gift that's nhl related.
That'll show the nhl!! Decline tickets that were paid for!!! Way to stick it to em!


I'm a she actually, but what I meant is we've told everyone to not buy us Canucks stuff, even though it's a frequent go-to gift idea for Christmas and birthdays. So, no one would buy us tickets because they were told in advance that we don't want any Canucks stuff. It's really just a matter of taking a stand and sticking to it, and having people around us who respect that.

Plus, you must have richer relatives and/or friends than me if you think playoff tickets are a gift possibility.
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Go, Canucks, Go!
Every single one of them.

Thanks for the memories, Luo! :'(




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