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.
May 22, 2015, 1:30 AM EDT
Ducks trying to make life miserable for Chicago’s goalie.
May 22, 2015, 1:00 AM EDT
Game 4 goes Saturday in Chicago.
May 22, 2015, 12:12 AM EDT
So, what will the coach do for Game 4?
May 21, 2015, 11:17 PM EDT
Chicago’s power play came up empty.
May 21, 2015, 10:36 PM EDT
Talk about timing.
May 21, 2015, 10:26 PM EDT
Quite a sequence.
May 21, 2015, 9:15 PM EDT
‘Showtime’ strikes late in the period.
May 21, 2015, 8:05 PM EDT
Coach Q, shaking it up.
May 21, 2015, 7:49 PM EDT
Pittsburgh GM won’t stand in the way.
May 21, 2015, 6:58 PM EDT
Hit knocked the veteran d-man out of Game 3.
May 21, 2015, 6:10 PM EDT
“To have a guy of his ilk, considered one of the best coaches in the National Hockey League, taking a real good hard look at us in Buffalo after a 30th-place finish — I thought the process was great.”
May 21, 2015, 5:26 PM EDT
Two-way contract for Karpat’s playoff scoring sensation.
May 21, 2015, 5:15 PM EDT
A wide range of topics.
May 21, 2015, 4:15 PM EDT
“It’s something that we’re working on everyday. We’re trying to do it behind closed doors and away from public scrutiny.”
May 21, 2015, 4:02 PM EDT
“Word choice matters, even when attempting to be humorous.”
May 21, 2015, 2:58 PM EDT
Recently represented the United States at the worlds.
May 21, 2015, 2:44 PM EDT
As many as six new head coaches could still be named.
May 21, 2015, 1:54 PM EDT
Coaches be getting paid.
May 21, 2015, 1:46 PM EDT
Some have wondered if he could replace goal-less Bryan Bickell.
May 21, 2015, 12:43 PM EDT
“We need to create a safe environment for the players.”
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