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 23, 2014, 10:23 AM EDT
The 23-year-old can now become an unrestricted free agent in the summer of 2016.
Jul 23, 2014, 9:56 AM EDT
Derick Brassard and John Moore to go.
Jul 23, 2014, 9:00 AM EDT
Barry Trotz continues Adam Oates’ alteration, at least for now.
Jul 23, 2014, 9:00 AM EDT
Wednesday’s delectable spread of links.
Jul 22, 2014, 11:00 PM EDT
They locked him up to a four-year deal on Tuesday.
Jul 22, 2014, 10:15 PM EDT
He spent last season playing in Switzerland.
Jul 22, 2014, 9:01 PM EDT
The Cuban-American could help market the sport.
Jul 22, 2014, 7:38 PM EDT
Turning over a new leaf?
Jul 22, 2014, 6:13 PM EDT
That’s $1 million less than his reported asking price.
Jul 22, 2014, 5:15 PM EDT
It’s believed to be worth $2.55 million overall.
Jul 22, 2014, 3:52 PM EDT
Another buy-low bargain like Mason Raymond?
Jul 22, 2014, 2:30 PM EDT
Jul 22, 2014, 1:42 PM EDT
Also went to bat for Jumbo Joe.
Jul 22, 2014, 12:27 PM EDT
Coming off an impressive rookie season.
Jul 22, 2014, 12:15 PM EDT
How ’bout that headline for some alliteration.
Jul 22, 2014, 10:57 AM EDT
His name is Kyle Dubas.
Jul 22, 2014, 10:40 AM EDT
Click for the full schedule of games on NBC and NBCSN.
Jul 22, 2014, 10:19 AM EDT
Had 14 goals and 15 assists, with 209 PIM, in 2013-14.
Jul 22, 2014, 10:01 AM EDT
Excited to join “the toughest team” the Leafs played last season,
Jul 22, 2014, 9:00 AM EDT
They didn’t make any big splashes this summer.
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