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Fred65

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I've just read an article in the THN regarding a KHL team withdrawing form the league period. The reason that the writer speculated on was the sponsor of the team would likely suffer severe financial problems next season with the economy likely to fail post corona virus. It's a good point. Business will likely take years to get back to normal and many paying customers will neither have jobs or capital al to buy tickets. That leads me to wonder how secure the Aqualini family is and beyond them a number of the other NHL franchises. In Vcr the real estate market will suffer, many will be unable to pay their mortgages and that market is  a primary part of the Aqualini's  portfolio. We talk flippantly about buy outs but is it practical. I guess the question is will the NHL be on it's heels next season. A number of teams are owned by financial stock investors ie new money. Will they be able to weather this storm or will the NHL need to address the problem in a new era

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One of the many reasons why NHL implemented revenue sharing years ago.  

There will be markets/owners that are unaffected (or less affected anyway) and they will prop up the others if necessary like has been happening for many years. 

Don't forget there will be expansion money coming from Seattle and typically,  when expansion happens, theres a bit of a spike in league revenue.

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Aquilini will be fine. He bought the Canucks for 60 million and its worth 10x that now. As a developer he's not going to lose money on things he already sold, if someones mortgage is in trouble it doesn't matter to him, he's already sold the property. He's probably vulnerable on commercial properties, but its a long term game for them. 

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7 hours ago, Jimmy McGill said:

Aquilini will be fine. He bought the Canucks for 60 million and its worth 10x that now. As a developer he's not going to lose money on things he already sold, if someones mortgage is in trouble it doesn't matter to him, he's already sold the property. He's probably vulnerable on commercial properties, but its a long term game for them. 

I'm not as confident as you, there's going to be a lot of bankruptcies, people will just walk from commitments. This is recession  baby, the world as we know it is going to chnage. This is 2008 squared. I'll be surprised if tickets sales don't  drop. Corporate tickets and private people just ain't going to have discretionary money. There's a lot of folks being laid off and corporation digging in rather than expansion. World wide spending, commodity sales, the price of oil is that low Alberta for instance is getting $3.75/bbl for bitumen, shale oil in the US needs a oil price of $25 to break even it's down at $20 now. This will effect production and maybe drop a couple of banks. I see Trump is meeting with all the major energy players this Friday, every one is scared. The Dow is way down as is the TSX.

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9 hours ago, Fred65 said:

I'm not as confident as you, there's going to be a lot of bankruptcies, people will just walk from commitments. This is recession  baby, the world as we know it is going to chnage. This is 2008 squared. I'll be surprised if tickets sales don't  drop. Corporate tickets and private people just ain't going to have discretionary money. There's a lot of folks being laid off and corporation digging in rather than expansion. World wide spending, commodity sales, the price of oil is that low Alberta for instance is getting $3.75/bbl for bitumen, shale oil in the US needs a oil price of $25 to break even it's down at $20 now. This will effect production and maybe drop a couple of banks. I see Trump is meeting with all the major energy players this Friday, every one is scared. The Dow is way down as is the TSX.

I'm a firm believer in not panicking before you need to. There are many ways all of this could break. The NHL has lasted through things like this and will do so again. 

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2 hours ago, Jimmy McGill said:

I'm a firm believer in not panicking before you need to. There are many ways all of this could break. The NHL has lasted through things like this and will do so again. 

I'm not one to panick either. But I do like to plan and look ahead. I have like most a home and family to care about, are hockey tickets important. The only time some thing of this nature has happened is WW2. But professional sports paid peanuts then, expectations were low. This last month 6 million workers applied for unemployment in the US, and it's just begun. Think, that's greater than the population of BC. Imagine a BC government with all it's services shut down …. no income, no services. Unemployment will only get worse. Food banks are running out of food, in the thirties there  were soup kitchens, during the war and post war there was rationing, every one went hungry and we're worried about hockey. Vaccines are a long way off and the business has to start from the bottom and reinvent it's self. Let's hope the NHLPA is in a helpful mood rather than obstructive mood :rolleyes: Folks need to read more Financial Post and less THN :lol:

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5 minutes ago, Fred65 said:

I'm not one to panick either. But I do like to plan and look ahead. I have like most a home and family to care about, are hockey tickets important. The only time some thing of this nature has happened is WW2. But professional sports paid peanuts then, expectations were low. This last month 6 million workers applied for unemployment in the US, and it's just begun. Think, that's greater than the population of BC. Imagine a BC government with all it's services shut down …. no income, no services. Unemployment will only get worse. Food banks are running out of food, in the thirties there  were soup kitchens, during the war and post war there was rationing, every one went hungry and we're worried about hockey. Vaccines are a long way off and the business has to start from the bottom and reinvent it's self. Let's hope the NHLPA is in a helpful mood rather than obstructive mood :rolleyes: Folks need to read more Financial Post and less THN :lol:

Financially, analysts are comparing the present situation more with the global recession of 08-09 than they are with any war.  The only economic down-turn comparable for most analysts would be the great depression.  As it happens, we made it out and came back much, much stronger than the recession of '08.  Things are going to get worse before they get better, there's no doubt in my mind about that - nor is there doubt that eventually, society will make it through and be stronger in the long-run, as there will be mechanisms and experience in place if/when something like this ever happens again. 

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22 hours ago, Fred65 said:

I've just read an article in the THN regarding a KHL team withdrawing form the league period. The reason that the writer speculated on was the sponsor of the team would likely suffer severe financial problems next season with the economy likely to fail post corona virus. It's a good point. Business will likely take years to get back to normal and many paying customers will neither have jobs or capital al to buy tickets. That leads me to wonder how secure the Aqualini family is and beyond them a number of the other NHL franchises. In Vcr the real estate market will suffer, many will be unable to pay their mortgages and that market is  a primary part of the Aqualini's  portfolio. We talk flippantly about buy outs but is it practical. I guess the question is will the NHL be on it's heels next season. A number of teams are owned by financial stock investors ie new money. Will they be able to weather this storm or will the NHL need to address the problem in a new era

The KHL Is restructuring, for the past 2 seasons they have been dropping teams that are financially unstabble . 
The team you are referring to would not have made the requirements to stay in the KHL next season.

The KHL is also implementing a salary cap for teams and changes needs for the game to be played o the N/A size ice rink for the 20/21 season.

i beleive 12 teams made that adjustment last season.

sorry my phone would not copy/ paste the link.

bit if you google “KHL cap implemented” , it should show up as an article from mid December.

i do agree , this is a hardship for everyone, everywhere.

...  Let’s hope a time like this that is affecting the entire World ,.  Brings us all closer together for generations to come.

A War - less world ,  managing the Earth,  and how we survive on it.

 

 

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47 minutes ago, Fanuck said:

Financially, analysts are comparing the present situation more with the global recession of 08-09 than they are with any war.  The only economic down-turn comparable for most analysts would be the great depression.  As it happens, we made it out and came back much, much stronger than the recession of '08.  Things are going to get worse before they get better, there's no doubt in my mind about that - nor is there doubt that eventually, society will make it through and be stronger in the long-run, as there will be mechanisms and experience in place if/when something like this ever happens again. 

I guess it depends on your choice  of news providers, I've heard many economist make the WW2 comparison. I was shocked to hear that in the last couple of weeks there has been 6 million apply for unemployment in the US …. and more to come for sure. When you think many many live pay cheque to pay cheque that's a lot of poverty. When I'm travelling in the US I'm always saddened to see the volume of workers who are on minimum. FYG waitreses in Minnesota their minimum wage is $2.00/hr. The future economically is not good in the Western world. Countries that are run autocratically stand the best chnace  IMO

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51 minutes ago, SilentSam said:

The KHL Is restructuring, for the past 2 seasons they have been dropping teams that are financially unstabble . 
The team you are referring to would not have made the requirements to stay in the KHL next season.

The KHL is also implementing a salary cap for teams and changes needs for the game to be played o the N/A size ice rink for the 20/21 season.

i beleive 12 teams made that adjustment last season.

sorry my phone would not copy/ paste the link.

bit if you google “KHL cap implemented” , it should show up as an article from mid December.

i do agree , this is a hardship for everyone, everywhere.

...  Let’s hope a time like this that is affecting the entire World ,.  Brings us all closer together for generations to come.

A War - less world ,  managing the Earth,  and how we survive on it.

 

 

I have to say of all the posters you offer the best factual commentary and as a rule look forward to reading your posts. I might be wrong but ticket prices in the KHL are substantially less than the NHL, as are the EU leagues in general???  Many team are the love child of oligarchs and when they fade so do the teams?? Are KHL players paid in rubles or $'s I visited the USSR in the sixties/early seventies so it's difficult to understand how things have changed. Thankfully it looks like Putin and Saudi are going to kiss and make up which should help Russia quite a bit although it's kicking the crap out of the US shale sands and AB bitumen  ::D

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1 hour ago, Fred65 said:

I have to say of all the posters you offer the best factual commentary and as a rule look forward to reading your posts. I might be wrong but ticket prices in the KHL are substantially less than the NHL, as are the EU leagues in general???  Many team are the love child of oligarchs and when they fade so do the teams?? Are KHL players paid in rubles or $'s I visited the USSR in the sixties/early seventies so it's difficult to understand how things have changed. Thankfully it looks like Putin and Saudi are going to kiss and make up which should help Russia quite a bit although it's kicking the crap out of the US shale sands and AB bitumen  ::D

Thank you Fred! 

I read something a year ago that it costs the avg. Fan approximately 2 weeks wage or more to see a game live..

i will look further into that as it is all relevant..  if I remember, the soft cap implemented this year converts to roughly 13m usd per team.

.. the KHL is also looking at creating a good working relationship with the NHL,  imagine the KHL teams with NHL prospects on their roster being able to appear in NHL games as part of their development?!

The AHL is only so big,  and not the Center of the Universe for Prospect hockey.

 

 Below is the article I referred to earlier,.  It is an easy read and refreshing to hear for the KHL..

 

 

exclusive for khl.ru
 

 

On December 11, KHL President Dmitry Chernyshenko had his annual meeting with the directors of the KHL’s clubs. During the discussions, various amendments to the KHL’s regulations were reviewed. The most significant changes concern the implementation of a hard salary cap, which will be introduced next season. Here’s a run-down of how the new rules affecting players’ salaries will operate.

 

 

How it works now

 

In the 2019-20 season, clubs are operating under a ‘soft’ cap. The total permitted playing budget is 800 million rubles and any club exceeding that limit is obliged to pay 30% of that excess in the KHL Stabilization fund.

 

Next season

 

The salaries of all players listed as part of the roster of the KHL team – including those sent to any farm club in the VHL – will be included in the cap calculations. This applies even to players who do not play in a single game.

The types of income included in the salary cap are as follows: 

 

- Salary;

- Individual bonuses worth more than 20% of the player’s salary;

- Team bonuses worth more than 20% of the combined team wage bill;

- Other material benefits for players and their immediate families, including travel, accommodation, education services etc.

The full list is available in Art.51 of KHL Legal Regulations.

Not included in the salary cap: 

 

- Individual bonuses worth less than 20% of the player’s salary;

- Team bonuses worth less than 20% of the combined wage bill;

- Prizes for teams finishing in the top four positions after the playoffs;

- Prizes for the top three players in the League;

- Salaries of players on two-way contracts with the Junior Hockey League, or playing for the KHL team while aged 21 or under;

- Salaries of any player who listed as injured with an expected return date no earlier than May 1;

- Sports equipment, meals for players.

 

Enforcing the cap

 

There are two key mechanisms to enforce the salary cap in the KHL:

- When applying to compete in the upcoming KHL season, any teams exceeding the cap must redraw their budget to come under the limit;

- Teams overspending during the course of the season will be prevented from signing new players until the playing budget is back under the salary cap.

 

Salary floor

 

In September, the KHL Board of Directors agreed to implement a salary floor starting from the 2020-21 season.

This will form part of the requirements for all teams in the league and will be reviewed each year when approving the competitors for the upcoming campaign. Each team will have to demonstrate a forecast budget that includes a minimum level of funding to pay its players. It will also need to provide proof of funds from the club’s sponsors or owners. Next season, the minimum will be 35% of the salary cap, i.e. 315 million rubles. The level will increase step-by-step until 2023-24, when it will be 55% of the cap (495 million rubles).

The floor that will be 270 million rubles includes players’ basic salaries, individual bonuses and team bonuses.

The league will adopt a ‘three strikes’ policy to deal with breaches of the rule: 

 

- First offense – a fine of 50% of the difference between the official ‘floor’ and the club’s actual expenditure;

- Second offense – a fine equivalent to 100% of the difference between the official ‘floor’ and the club’s actual expenditure;

- Third offense – expulsion of the club from the KHL.

 

Also on the agenda

 

The meeting also dealt with several other issues ranging from the size of the ice in KHL games to a review of the smart puck technology deployed for the first time this season:

 

KHL-NHL Memorandum

 

A revised memorandum of understanding between the NHL and the KHL provides more detailed rules on the mutual enforcement of arbitration arrangements between the two leagues.

 

Rink sizes

 

This season, teams in the KHL are using three different sizes of ice in their arenas. Following a poll of all 24 clubs, it became clear than an absolute majority (16 out of 24) favors a uniform playing surface of 60x28m.

In response the league has decided that all teams should move to a smaller rink size by the start of the 2021-22 season allowing playing both 60x28 and 60x26 surfaces. Before the start of next season, five teams (Jokerit, Lokomotiv, Salavat Yulaev, Traktor, Torpedo) will reduce the width of their rinks from 30m to 28m. Dinamo Riga and Kunlun Red Star will follow suit before the start of the 2021-22 season. Next season, 22 out of the 24 clubs in the KHL will play on a allowable size of ice pad.

 

Medicine and anti-doping

 

The KHL reiterates is zero tolerance stance on doping in sport. As in previous seasons, there is a memorandum of direct cooperation between the KHL and the International Ice Hockey Federation for the 2019-20 season. From September to November 2019, 112 doping tests were conducted jointly with the IIHF. A total of 440 tests are planned for the current season.

The KHL is constantly enforcing stricter requirements for the anti-doping awareness of medical staff and the players themselves. The league implements an anti-doping program developed jointly with RUSADA. Every player in the KHL, Junior Hockey League and Women’s Hockey is obliged to complete an online testing program. Without that certificate, they are not permitted to compete in the championship.

 

Smart pucks and big data

 

This season saw the launch of two ambitious projects designed to bring fans even closer to their favorite teams and to the league.

The ‘smart pucks’ rolled out from the start of the season are part of a world-leading set-up which delivers the highest level of data tracking for players and pucks in every KHL game. This sports telematics system offers a wealth of new statistical data, to the benefit of clubs and fans alike.

The league is in regular discussion with the coaching teams at all clubs, explaining what the system can offer and getting feedback. The telematics are gradually forming a part of the day-to-day life of every club in the league and as we work together to refine it, the system will become even more informative.

Fans also benefit from the opportunity to access smart stats, generated in real time.

The second project is more directly linked to fan experience. In March of this year the KHL signed a contract with IT company SAP. The data specialist will use its technologies to establish a detailed database of all interactions between fans, the KHL and individual clubs. A pilot project is already underway, involving Ak Bars, Metallurg and Spartak, and has compiled more than 867,000 individual fan profiles based on over 4.5 million transactions.

The long-term aim is to create a single database that records the full history of each fan’s interaction with the KHL. This information can then be used to enable the league and its clubs to communicate directly with each individual supporter, tailoring the message to their individual needs.

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1 hour ago, Fred65 said:

Thks that should impact as you said the NHL and frankly maybe the AHL to if NHL teams can put players in the KHL

Better ice time for all prospects when they’re spread out through the world and skating on the same ice..  The game grows as well, better for all.

Perhaps loosen the waiver rights for a good flow of prospects to show in the Bigs as part of their development.

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21 hours ago, Fred65 said:

 FYG waitreses in Minnesota their minimum wage is $2.00/hr. 

No it isn't Fred. You don't need to spread misinformation to try and make an argument,  it's just a conversation here.

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2 hours ago, Fanuck said:

No it isn't Fred. You don't need to spread misinformation to try and make an argument,  it's just a conversation here.

Well I based that number on talking to a waitress in Madison Wisconsin at an Applebees   I never checked but did today at your insistence and found this. Sorry I may have mislayed you with the Minnesota reference but truly unintentional

 

Quote

Wisconsin's current minimum wage is $7.25 per hour. Wisconsin's minimum wage is tied to the Federal Minimum Wage rate. A special minimum wage of $5.90 per hour ($2.13 per hour for tipped employees)

 

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23 hours ago, Fred65 said:

Thks that should impact as you said the NHL and frankly maybe the AHL to if NHL teams can put players in the KHL

Seem like the trend is to have players develop in their home regions instead of putting all of them into the ahl. Essentially all major oversee leagues is to act as the minor or feeder league to nhl affiliated teams with prospects required to play in their home regions and other nhl cuts having the option to play in other leagues instead of the ahl. Actually make sense for all in the long run. Oversea leagues gets a boost in talent and competition which in turn help them both financially and develop the game in their country and the nhl teams being able to give more ice time to their prospects and make their minor leaguers more happy as they can now play at their home.

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19 hours ago, Googlie said:

Is actually $7.25 an hour.  Lowest in the US is Georgia and Wyoming at $5.15

I got the State wrong and  mixed up Madison for Minnesota but the wage is correct

 

Quote

Wisconsin's current minimum wage is $7.25 per hour. Wisconsin's minimum wage is tied to the Federal Minimum Wage rate. A special minimum wage of $5.90 per hour ($2.13 per hour for tipped employees)

I don't mind telling you I was shocked when the lady told me. I was travelling and didn't bother to check but here's the confirmation that she wasn't joking.

 

Quote

Federal law[edit]

The United States of America federal government requires a wage of at least $2.13 per hour be paid to employees who receive at least $30 per month in tips.[4] If wages and tips do not equal the federal minimum wage of $7.25 per hour during any week, the employer is required to increase cash wages to compensate.[5]

 

Apparently this is how it works. If a waiter/waitress average less than $30 / month in tips then the employer must make the salary up to the $7.25 However which waiter or waitress makes less than $30/month there for the salary remains at $2.13 Funny enough the waitress in question who explained this to us on what was an extremely quiet night when tips would be few and far between. She actually sat at our table and chatted for some time. She also quickly added that she didn't want to pressure us. She seemed like a nice and genuine lady, both my wife and I were concerned. The lady wasn't a youngster living with a bunch of other similar minded youngster. 

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On 4/1/2020 at 1:06 PM, Fred65 said:

I've just read an article in the THN regarding a KHL team withdrawing form the league period. The reason that the writer speculated on was the sponsor of the team would likely suffer severe financial problems next season with the economy likely to fail post corona virus. It's a good point. Business will likely take years to get back to normal and many paying customers will neither have jobs or capital al to buy tickets. That leads me to wonder how secure the Aqualini family is and beyond them a number of the other NHL franchises. In Vcr the real estate market will suffer, many will be unable to pay their mortgages and that market is  a primary part of the Aqualini's  portfolio. We talk flippantly about buy outs but is it practical. I guess the question is will the NHL be on it's heels next season. A number of teams are owned by financial stock investors ie new money. Will they be able to weather this storm or will the NHL need to address the problem in a new era

Well if a part of a portfolio fails then it just becomes a tax write off.. 

 

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