Nov 4, 2013, 3:31 PM EDT
Under the current CBA, NHL players are supposed to receive 50 percent of hockey-related revenues, with the owners getting the other half. Occasionally, however, the two sides can’t agree how to add up the revenue. Such is the case, apparently, when it comes to the New York Islanders and their cable TV deal.
When Charles Wang bought the Islanders in 2000 for $187 million, $30 million of the purchase price was allocated to the team’s lucrative cable television contract, which belongs to MSG. The disagreement between the Islanders and the NHLPA is how the amortization (non-cash expense) should be treated when counting the team’s revenue for purposes of calculating the league’s salary cap. This season players are entitled to 50% of hockey-related revenue, according to the collective bargaining agreement between the players and owners that took effect last season.
Based the CBA, the Islanders claim they should be allowed to reduce their annual revenue by the amount of the annual amortization of the cable contract (a few million dollars a year). The NHLPA believes the Islanders should not be able to lower their revenue–and thus the amount of revenue that the players are entitled to–with a paper expense because the team is getting the full amount of the cable fee (over $20 million this season).
Again, this happens from time to time. For example, with the $25 million payment the Phoenix Coyotes received from the City of Glendale during the 2010-11 season. The union wanted that counted as HRR; the NHL didn’t. That dispute went to arbitration, according to the Globe and Mail.
As for this case, sources tell Forbes the Isles are likely to prevail.
We’re sure you can’t wait to find out for real.
Jul 30, 2015, 10:27 PM EDT
Former NHL stars are among the list of likely candidates.
Jul 30, 2015, 9:00 PM EDT
Has Buffalo set itself up for an era of long playoff runs?
Jul 30, 2015, 7:52 PM EDT
The deal is reportedly worth $5.6 million.
Jul 30, 2015, 7:11 PM EDT
At one point he was listed as the top European skater in the 2015 draft.
Jul 30, 2015, 5:52 PM EDT
The Flyers also have forwards Claude Giroux and Sean Couturier locked up.
Jul 30, 2015, 4:22 PM EDT
The 37-year-old still wants to continue his career.
Jul 30, 2015, 3:00 PM EDT
Along with Yao Ming.
Jul 30, 2015, 2:01 PM EDT
“Nobody benefits from a short-term deal like this, in particular, our hockey department.”
Jul 30, 2015, 1:15 PM EDT
Vancouver wasting little time locking up the target of Tuesday’s trade.
Jul 30, 2015, 12:50 PM EDT
Boston could use some depth on its back end.
Jul 30, 2015, 11:50 AM EDT
Hearing is scheduled for Friday at 9 a.m. ET.
Jul 30, 2015, 10:50 AM EDT
Alleged incident involved a female victim.
Jul 30, 2015, 9:50 AM EDT
As opposed to just his skill.
Jul 30, 2015, 9:00 AM EDT
The former general manager “wasn’t prepared to make the changes that needed to be made.”
Jul 30, 2015, 8:00 AM EDT
Thursday’s collection of links.
Jul 29, 2015, 10:40 PM EDT
He played in 502 games, primarily with the Toronto Maple Leafs.
Jul 29, 2015, 9:12 PM EDT
The 24-year-old gives agreed to an entry-level deal.
Jul 29, 2015, 7:49 PM EDT
Will he live up to his next contract?
Jul 29, 2015, 6:27 PM EDT
“It really wasn’t about Dainius himself.”
Jul 29, 2015, 4:57 PM EDT
His collection can be had for $5.7 million.
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- Trade: Penguins send Sutter to Canucks for Bonino, Clendening (54)
- Voynov serving sentence at jail that once advertised it had flat screen TVs (45)