Anyone understan the HRR split stuff?

[icevenom]

I was trying to google, found a cool cbc article: http://www.cbc.ca/sports/hockey/opin...d-revenue.html

But alas, I still don't understand entirely what is going on... is the hockey related revenue splitting a sort of "Bonus" the players split at the end of the season? or does this count towards their escrow payments...??? how does this all work?

Just trying to understand what the actual "issue" is...

[thatbirdguy]

It's all the income the League takes in from ticket sales, merchandise, concessions, parking, tv deals, etc. It's essentially everything the League earns (before most costs).

HRR is the crux of the entire lockout. Owners want to split HRR evenly - 50% owners, 50% to players (as governed by the salary cap). Players currently earn 57%, so this would cause a reduction in salary cap, or rollback in salaries.

They also apparently want to redefine HRR to include less. So players receive a smaller portion of a smaller pie.

[Dakkster]

Actually, HRR doesn't count ALL the revenue. Luxury boxes is one of the big gray areas. The league wants to revise what counts as HRR too, making the pot even smaller.

This is why I have a hard time believing all the "the majority of the league is losing money" talk. Florida makes money because of the arena deal they have, but since a lot of it isn't hockey related, or a lot of it is hockey related but falls outside of HRR, they can just sweep that under the rug and claim that they're losing money. I've read too many articles about the profitability of the teams to trust the league on this. HRR is financial double speak.

[thatbirdguy]

Originally Posted by Dakkster

Actually, HRR doesn't count ALL the revenue. Luxury boxes is one of the big gray areas. The league wants to revise what counts as HRR too, making the pot even smaller.

This is why I have a hard time believing all the "the majority of the league is losing money" talk. Florida makes money because of the arena deal they have, but since a lot of it isn't hockey related, or a lot of it is hockey related but falls outside of HRR, they can just sweep that under the rug and claim that they're losing money. I've read too many articles about the profitability of the teams to trust the league on this. HRR is financial double speak.

You're right - actually there are a bunch of little grey areas in there.

For example - the Tampa Bay Times Forum just put in a new HD scoreboard, which they want to include solely as a hockey cost. Despite the fact that it will be used during concerts and other events. And revenue from these events does not count towards HRR.

[icevenom]

As the CBC article states... if you have more than one team in a stadium then they are cutting "REvenues" down to 33% or whatever it says when reporting as HRR... even though the team which owns the stadium is often making more money.


So if HRR is 100$ the league makes 43% now and the players make 57%. Where the 57% determines the salary cap of teams? i.e. 57$/30 teams = the max cap? if 100 becomes 200$... then salaries have the potential to double?

In other words, the cap is the max pay out the players make... so it just is partly determined by the total revenue. If the league doesn't make as much money, they don't get paid as much (escrow payments)?