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.
Apr 20, 2014, 9:58 AM EDT
With a two-goal lead, Pittsburgh had four forwards on during a power play, which proved to be the turning point of this game.
Apr 20, 2014, 9:06 AM EDT
Meanwhile the Lightning are in a dangerous position.
Apr 20, 2014, 1:15 AM EDT
“You can’t defend on your heels,” Ryan Suter said.
Apr 20, 2014, 12:35 AM EDT
Colorado overcomes some strange officiating late in Game 2.
Apr 19, 2014, 11:56 PM EDT
Colorado’s rookie sensation is inspiring some bold words.
Apr 19, 2014, 11:19 PM EDT
Colorado might want to keep Gabriel Landeskog and Nathan MacKinnon together.
Apr 19, 2014, 10:54 PM EDT
Special teams factored in.
Apr 19, 2014, 10:37 PM EDT
Apr 19, 2014, 10:33 PM EDT
The defenseman last played in the first period.
Apr 19, 2014, 10:18 PM EDT
He’s clearly not wilting in the postseason spotlight.
Apr 19, 2014, 9:55 PM EDT
Columbus has been in the NHL since the 2000-01 season.
Apr 19, 2014, 8:52 PM EDT
More magic from Paul Stastny?
Apr 19, 2014, 8:36 PM EDT
Quite a busy 2:26 of ice time.
Apr 19, 2014, 7:57 PM EDT
“I have to be better.”
Apr 19, 2014, 7:22 PM EDT
The Blues coach mostly pleads the fifth.
Apr 19, 2014, 6:52 PM EDT
His play may wind up costing him a suspension.
Apr 19, 2014, 6:30 PM EDT
Pittsburgh carries a 1-0 series lead into Saturday.
Apr 19, 2014, 6:29 PM EDT
Things changed fast late in the third period.
Apr 19, 2014, 6:11 PM EDT
His penalty got things going in the wrong direction for Chicago.
Apr 19, 2014, 5:34 PM EDT
Memo to players: wear a cup.
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