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.
Mar 26, 2015, 11:30 PM EDT
Winnipeg grabbed a big win today, too.
Mar 26, 2015, 10:16 PM EDT
A tough win turned into a bitter OT loss.
Mar 26, 2015, 10:13 PM EDT
Will anyone else join them tonight?
Mar 26, 2015, 9:48 PM EDT
The real winners might be the Edmonton Oilers.
Mar 26, 2015, 9:12 PM EDT
Not a great night for Ottawa.
Mar 26, 2015, 8:58 PM EDT
Update your save of the year highlight packages.
Mar 26, 2015, 8:48 PM EDT
He seems OK after that tough, 2-on-1 check.
Mar 26, 2015, 8:41 PM EDT
Three goals allowed in 20 minutes by Detroit’s embattled starter.
Mar 26, 2015, 8:23 PM EDT
The Rangers forward felt encouraged by this latest step.
Mar 26, 2015, 7:03 PM EDT
He’s lining up with Brad Marchand and Patrice Bergeron to start.
Mar 26, 2015, 6:37 PM EDT
A Vladimir Tarasenko hit shook him up on Tuesday.
Mar 26, 2015, 5:40 PM EDT
Vermont power forward was the club’s third-round pick in 2011.
Mar 26, 2015, 4:56 PM EDT
Featuring Erik Karlsson, Marc Methot and a guest appearance from Curtis Lazar.
Mar 26, 2015, 4:37 PM EDT
The 43-year-old has been a big influence on his young linemates.
Mar 26, 2015, 4:09 PM EDT
Granted, they have to make them first.
Mar 26, 2015, 3:44 PM EDT
Bruce Boudreau continues to “experiment” on defense.
Mar 26, 2015, 3:20 PM EDT
“Hopefully we realize that, come together and allow this group to stay together.”
Mar 26, 2015, 2:44 PM EDT
An interesting comment from his agent.
Mar 26, 2015, 2:14 PM EDT
News and notes from around the crease…
Mar 26, 2015, 1:57 PM EDT
“We are all thinking the same way and going the same direction.”
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