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.
Aug 27, 2014, 10:49 PM EDT
Of course, neither will be wearing a Sabres’ uniform – not yet at least.
Aug 27, 2014, 9:40 PM EDT
They’ve also appointed Don Sweeney as the AHL team’s new general manager.
Aug 27, 2014, 8:28 PM EDT
It matters given that they will start next season with a largely unchanged roster.
Aug 27, 2014, 7:20 PM EDT
Ken Holland hasn’t been in contact with him lately, but that will change soon.
Aug 27, 2014, 6:10 PM EDT
He hasn’t played for them since 2007.
Aug 27, 2014, 4:55 PM EDT
It’s a two-way deal.
Aug 27, 2014, 3:47 PM EDT
Mr. Hockey still reigns supreme in Detroit.
Aug 27, 2014, 2:24 PM EDT
“I haven’t heard that.”
Aug 27, 2014, 1:28 PM EDT
“We haven’t defined a process and certainly no decisions have been made.”
Aug 27, 2014, 1:11 PM EDT
Needs to bounce back after last year’s disappointing campaign.
Aug 27, 2014, 12:31 PM EDT
Finished second in the NHL among forwards last year, with 87.
Aug 27, 2014, 11:39 AM EDT
Former Quebec league sniper is gunning for a gig in Detroit.
Aug 27, 2014, 10:57 AM EDT
Former Tampa Bay forward was bought out of his contract earlier this summer, following legal troubles.
Aug 27, 2014, 10:04 AM EDT
The Red Wings are rebuilding on the fly, but are they assembling a future Cup contender?
Aug 27, 2014, 9:00 AM EDT
He’ll enter the second season of his seven-year, $36.75 million contract.
Aug 27, 2014, 8:00 AM EDT
They have made it to the playoffs for 23 straight seasons.
Aug 26, 2014, 10:51 PM EDT
He’s the former face of the franchise.
Aug 26, 2014, 9:57 PM EDT
A recent report has added new fuel to the speculation on that subject.
Aug 26, 2014, 8:30 PM EDT
Dupuis and Hornqvist are two of the main options.
Aug 26, 2014, 7:23 PM EDT
Will they go another season without one?
- Gomez goes full circle by rejoining Devils on tryout basis 7
- Under Pressure: Jimmy Howard 6
- Looking to make the leap: Anthony Mantha 17
- It’s Detroit Red Wings day on PHT 24
- Under Pressure: Nathan Horton 8
- Will Johansen be the latest Overhardt holdout? 25
- It’s Columbus Blue Jackets day on PHT 16
- Shanahan tasked with ending years of collapses 9
- Looking to make the leap: Peter Holland 1
- Under Pressure: Randy Carlyle 5
- NHL-to-Vegas talks gaining steam (68)
- Report: Bruins need to make a trade (61)
- Sounds like San Jose handled stripping Thornton’s captaincy really well (43)
- Fanspeak: Mats Sundin voted greatest Maple Leaf in franchise history (43)
- Fanspeak: Lemieux (stunner!) voted greatest Penguin in franchise history (41)