Archived

This topic is now archived and is closed to further replies.

poetica

Lockout season's revenue lower than projected

16 posts in this topic

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.

0

Share this post


Link to post
Share on other sites

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.

1

Share this post


Link to post
Share on other sites

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

0

Share this post


Link to post
Share on other sites

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.

0

Share this post


Link to post
Share on other sites

Yep, I haven't bought any merchandise this year...

0

Share this post


Link to post
Share on other sites

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

0

Share this post


Link to post
Share on other sites

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.

0

Share this post


Link to post
Share on other sites

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

0

Share this post


Link to post
Share on other sites

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.

0

Share this post


Link to post
Share on other sites

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.

....

0

Share this post


Link to post
Share on other sites

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

0

Share this post


Link to post
Share on other sites

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.

0

Share this post


Link to post
Share on other sites

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

0

Share this post


Link to post
Share on other sites

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.

0

Share this post


Link to post
Share on other sites

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...

0

Share this post


Link to post
Share on other sites

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!

0

Share this post


Link to post
Share on other sites

  • Recently Browsing   0 members

    No registered users viewing this page.