Jeremy Laura: Hurry up and wait, glitches in the return to play

Foist!!!

Foist!!!
- HenryHockey

Nicely done!

I don't understand why the owners would agree to a cap on escrow at all. Isn't escrow the fundamental mechanism to insure players don't earn more than 50% of Hockey Related Revenue?

If there's a 6% cap next season, they could earn 80%+ depending on losses and attendance recovery.

I don't understand why the owners would agree to a cap on escrow at all. Isn't escrow the fundamental mechanism to insure players don't earn more than 50% of Hockey Related Revenue?

If there's a 6% cap next season, they could earn 80%+ depending on losses and attendance recovery.
- charlest

I completely agree. The memorandum of understanding signed in June (before the playoffs) had 20% escrow for 20/21 and 20/22 with a drop to 6% in the years following. They also had players agree to defer 10% salary (post escrow, so 8%) that would be repaid over the following three seasons. Whatever numbers were being considered at the time were WaY off. Now there’s this MOU that locks in these amounts and a revenue model that doesn’t come close to being able to sustain it. In the end, the 50/50 split of the original CBA is still enforceable and could be used in some way to supersede the MOU. No one wants to go down that path and see this mess spelled out in court. The players are saying, “hey, we signed it so it’s all good”, the owners are saying, “we lost way more money than we thought we would”. Stalemate.

Certainly looks like another "delay to play" will be happening. 1 province will not sign off on the NHL procedures for return to play.....not sure which one it is as the video would not play for me....and all these teams coming south would not be anything but a cluster...yeah. CA, NY, MI are in lockdown or mostly locked downed, unless you are a big corporate store or franchise. .....
C'mon man! Give the people some hope!

Why not just vaccinate everyone involved in pro sports? I mean everyone who travels with a NHL, NBA, NFL, or MLS team.

Watching sports gives people a sense of normalcy .. and something to do while being locked down

Certainly looks like another "delay to play" will be happening. 1 province will not sign off on the NHL procedures for return to play.....not sure which one it is as the video would not play for me....and all these teams coming south would not be anything but a cluster...yeah. CA, NY, MI are in lockdown or mostly locked downed, unless you are a big corporate store or franchise. .....
C'mon man! Give the people some hope!
- HenryHockey

I hate this standstill. I really thought we were on the way. I kept waiting for some positive news but it didn’t come

... the owners are saying, “we lost way more money than we thought we would”. Stalemate.
- Jeremy Laura

they're billionaires and can easily borrow money to cover the losses (or they can sell the team to someone who can).

heck, I've made ~50% returns in last 6 months buying stocks. I have no sympathy whatsoever; they signed up for this. I have no doubt they've used the "but you signed the contract" line against people when it benefited them.

they're billionaires and can easily borrow money to cover the losses (or they can sell the team to someone who can).

heck, I've made ~50% returns in last 6 months buying stocks. I have no sympathy whatsoever; they signed up for this. I have no doubt they've used the "but you signed the contract" line against people when it benefited them.
- farooge

Not all the owners have that kind of cash. Go through the Forbes piece and then look up the groups. They’re also not allowed to sell their teams (or relocate) without a vote of approval and permission from the NHL. Remember the Coyotes time with no ownership? The franchises default back to the NHL. It’s way more complicated than just raising the money or selling. The system is set up so that teams that lose money every year still show a profit (in a normal year) by redistributing owner share HRR. There are teams who just can’t make it on their own

they're billionaires and can easily borrow money to cover the losses (or they can sell the team to someone who can).

heck, I've made ~50% returns in last 6 months buying stocks. I have no sympathy whatsoever; they signed up for this. I have no doubt they've used the "but you signed the contract" line against people when it benefited them.
- farooge

The other issue, no way can you get “market value” and some teams have as much debt as their value. Meaning, if they sold it, the debt would transfer and the team would have to be paid for twice. You need to step back and take a look at how these are all run. If a team folds and declares bankruptcy, the NHL has to take ownership. How many can they handle for another season with no revenue?

they're billionaires and can easily borrow money to cover the losses (or they can sell the team to someone who can).

heck, I've made ~50% returns in last 6 months buying stocks. I have no sympathy whatsoever; they signed up for this. I have no doubt they've used the "but you signed the contract" line against people when it benefited them.
- farooge

Final point - the owners “signed up for” a 50/50 revenue split. They could sue the NHLPA for the shortfall of last year. Thats why a MOU was signed. To keep things going while the debts were still racking up. Technically, they should drop the salary cap down to last season’s revenue of 3.5 billion. It would destroy the teams. Make sure you understand the bigger picture

Update! A 56 game schedule has been tentatively approved. Still needs to be voted on, ratified and schedules implemented. An all Canadian division looks to be included in the details

It would destroy the teams. Make sure you understand the bigger picture
- Jeremy Laura

Nothing like having your cake and eating it too (I guess)

For example - take "my team". Our ownership group also gets to "run" the arena and keeps all of the revenue from doing so. None of the money made from anything but "Preds hockey" is considered "HRR" but they would never have gotten the opportunity to make it without owning the hockey team in the first place.

Same story with Little Caesars Arena, starting with $324m public funds (+++).

I could keep going. I may understand more than you assume and simply have a different opinion. I'm almost always going to be on the players (workers) side.

I'll say it again: "they can borrow the money or sell the team"

Nothing like having your cake and eating it too (I guess)

For example - take "my team". Our ownership group also gets to "run" the arena and keeps all of the revenue from doing so. None of the money made from anything but "Preds hockey" is considered "HRR" but they would never have gotten the opportunity to make it without owning the hockey team in the first place.

Same story with Little Caesars Arena, starting with $324m public funds (+++).

I could keep going. I may understand more than you assume and simply have a different opinion. I'm almost always going to be on the players (workers) side.

I'll say it again: "they can borrow the money or sell the team"
- farooge

They can’t sell the team without approval. HRR includes concessions and souvenirs. There’s no point borrowing to increase your debt. Remember the 50/50? The players are on the hook for that billion dollar loss. I see both sides. Right now, the workers are getting paid and not working. They don’t have jobs without owners. It’s pretty stupid to minimize the losses that could shut a team down. There aren’t lines of people wanting to buy a team and take over the debts. Some of the owners used to be regular workers too. They made their own fortunes and provide the teams we watch. You’re fine to disagree, but some of your premises are just completely untrue. The players owe over a billion dollars to the owners. At some point, it has to be remedied.

Nothing like having your cake and eating it too (I guess)

For example - take "my team". Our ownership group also gets to "run" the arena and keeps all of the revenue from doing so. None of the money made from anything but "Preds hockey" is considered "HRR" but they would never have gotten the opportunity to make it without owning the hockey team in the first place.

Same story with Little Caesars Arena, starting with $324m public funds (+++).

I could keep going. I may understand more than you assume and simply have a different opinion. I'm almost always going to be on the players (workers) side.

I'll say it again: "they can borrow the money or sell the team"
- farooge

The other issue, most teams haven’t made any revenue since last March. 9 months of no income and still paying for leases, office staff and player salaries. The hole keeps getting deeper

They can’t sell the team without approval. HRR includes concessions and souvenirs.
- Jeremy Laura

Which are sold during a hockey game. Do the Pistons get to play at Little Caesars for free? What about concerts?

Which are sold during a hockey game. Do the Pistons get to play at Little Caesars for free? What about concerts?
- farooge

Of course the Pistons pay to play (different ownership) and concerts. That does lend itself nicely to exactly how much additional revenue is being lost for all of these buildings. Now these buildings are sitting empty, but the bills continue to mount up.

On the flip side, players do endorsements and other enterprises. Their fame is due to the NHL (as your comment regarding Preds ownership) but that money (rightfully) doesn’t go toward HRR. Keeping in mind, with ownership, all those events have massive overhead for event workers and security. Along with that, part of the public funds used are repaid with ticket fees/percentages. Again, those bills come due for a lot of teams who aren’t selling tickets. As for employees, before the NHL players got their last checks, hundreds of staff were let go across the league. Ownership is so important for the health of any league. The system that was set up is insane. Every single year escrow is paid because player salaries are more than 50%. Every single year, 5 to 10 teams are losing money and have to get floated by the top revenue earners.

I honestly respect where you’re coming from, and I am so grateful that you’re taking time to lend your voice. It’s an absolute privilege for me (and a blessing) to see a Preds fan taking time to not only read but react. What I’m hoping for is some balanced understanding. There are ownership groups that can throw money at their issues and be fine. There are also some who (in my opinion) shouldn’t be able to function year after year posting deficits. The relationship of owners and players is symbiotic. They need each other, and as fans, we need them both. We can’t keep tearing into owners and imagining that they all have endless cash flow.

Please know that, first and foremost, I truly appreciate your voice on this. I want to make sure I’m hearing you out and I hope that I’ve at least given you some tidbits to think about. Keep coming back, I love your passion.

Thanks Jeremy, for being able to state the facts w/o resorting to a strictly opinionated piece.

Thanks Jeremy, for being able to state the facts w/o resorting to a strictly opinionated piece.
- HenryHockey

I appreciate that H2! I also want to make sure I can listen. I’ve learned so much from all of you and it’s been a huge blessing

On the flip side, players do endorsements and other enterprises. Their fame is due to the NHL (as your comment regarding Preds ownership) but that money (rightfully) doesn’t go toward HRR.
- Jeremy Laura

Most players have short careers and 99% of them don't get to endorse anything. Any fame they do have is related to possessing a unique still set people are willing to pay to see.

The skill owners bring to the table is "sitting on an absurdly large pile of money ... so big that it actually allows them to acquire one of the most extreme vanity purchases available to a human"

How much value should be assigned to being able to say "I own a NHL hockey team"?

I'd bet most (if not all) owners were either born rich or into very fortuitous conditions at the very least.

I honestly respect where you’re coming from, and I am so grateful that you’re taking time to lend your voice. It’s an absolute privilege for me (and a blessing) to see a Preds fan taking time to not only read but react.
- Jeremy Laura

Having been born in Ohio, and with family that now lives in Michigan, I think I can read between the lines here.

[sigh]

Having been born in Ohio, and with family that now lives in Michigan, I think I can read between the lines here.


- farooge[sigh]

There’s no “in between the lines”. I am sincerely grateful that you’re taking time to spell out your thoughts and hang with us here. Whether we agree or not, your voice is a valuable part of this post and I appreciate it.

Most players have short careers and 99% of them don't get to endorse anything. Any fame they do have is related to possessing a unique still set people are willing to pay to see.

The skill owners bring to the table is "sitting on an absurdly large pile of money ... so big that it actually allows them to acquire one of the most extreme vanity purchases available to a human"

How much value should be assigned to being able to say "I own a NHL hockey team"?

I'd bet most (if not all) owners were either born rich or into very fortuitous conditions at the very least.
- farooge

Mike Illich went from broke to owner. He bought a losing team and poured himself into it. He loved the city and wanted to bring a championship to the Wings. Owners are human beings. Some had an easier road than others. Some players were born to rich families and because of that had opportunities no one else did. There are silver spoons on both sides of this, and there are also self made people on both sides. By dismissing an entire group of people, you’re missing out on some amazing stories and shorting yourself the experience of appreciating the individual

Financial details and my own impatience aside being the last league to start up is probably for the best.

The NFL hasn’t been perfect and they do only play one game a week but they seem to have a bit of a handle on it now.

The NBA will probably be the ultimate test run for us, while their rosters are smaller the way that league operates is similar to what the NHL will likely be doing.

Long story short the NHL will be able to see what does and doesn’t work for the other leagues and can adjust accordingly.

Another food for thought considering things should be better by the time a playoff roles around I would be curious if the NHL will look to relocate the Playoffs to a hub that will be allowing fans at games.