By analyzing criteria including player satisfaction, financial stability of the league, the NHLPA’s relationship with the NHL and general public, and maintaining the integrity of the sport, the NHLPA’s best option is to agree to the NHL’s terms to end the lockout. The NHL’s demands specifically include restructuring the 24% salary rollback to take more money away from high-end players and none from lower-paid players, slightly improving the league payroll tax, eliminating salary arbitration, and instituting a $42.5 million salary cap. This solution is the best alternative because the player’s counter-offer to these demands consisted of each of these elements, with the primary difference being a $46 million salary cap rather than $42.5 million. This agreement will immediately improve the financial stability of the NHL, where players’ salaries took up 76% of …show more content…
Although it may be perceived or even feel like the players “lost” these negotiations, the $3.5 million difference in salary cost is insignificant. By accepting this lower offer, the NHLPA avoids the costs of continuing to negotiate, improves their relationship with the league, and gets to end the lockout and return to the ice. Finally, this alternative benefits the game of hockey as a whole. If the NHL and NHLPA were to continue negotiations, there would be more time spent in deliberation rather than on the ice, all while relationships between the two associations worsened. Alternatively, dissolving the league altogether would create a void and, given the numerous international players in the NHL, foreign players would simply return to their home countries to compete professionally. This action would significantly dilute the talent of hockey players from one league, the NHL, into numerous eastern European, Canadian, and Russian leagues instead. In this scenario, the game would be less competitive overall, and fan satisfaction would be
Fortunately for the NHL, they had/ have the Chicago Blackhawks, the Franchise to bring hockey back. The Chicago Blackhawks started the 2012-2013 series with a 24 point streak, meaning that they went 24 games with at least 1 point gained in each game. As many people don’t pay attention until the season has hit 20 or so games, the Hawks, had come to break the lockout of that particular attention span causing more attention towards not only the NHL , but for the Blackhawks themselves. As fans joined the progressing bandwagon, the NHL was gratefully coming out of the “drought” with numourus sponsorships with companies, and gaining profit from their
Overall, compelling points exist supporting or not supporting a salary cap in baseball. Teams have the benefit of a salary cap existing, and out of that, a balance in free agency forms and a sense of championship parity develops too. On the other side of the spectrum, teams can use the Moneyball method of recruiting and signing players, along with tax implications and revenue sharing to balance out payrolls. The main factor in deciding if a salary cap is appropriate is the factor of fairness among the teams. Therefore, based off the support the research provides, the implementation of a salary cap is necessary.
Cutting two leagues would save clubs over $600,000 per year in player expenses alone (See Figure 3). And while there are many benefits to adopting the NHL model in regards to draft rights retention, having more players in college would decrease the amount of players in the lower minors and decrease the amount of competition. Having college baseball in effect replace the lower minor league levels will remove the need for these levels as well as giving MLB a way to balance out the costs of increasing salaries.
Labor market theory is one of the most integral economic theories needed to dissect the inefficiencies in professional sports. Looking first at the type of market these leagues function in, one can see that they do not necessarily meet all the criteria that a competitive market requires. The big four sports leagues in the US have a set number of teams which creates barriers for entry. Only when an expansion is agreed upon by the league, such as NHL has done for the upcoming season, are teams allowed to enter, and even then, it is limited to a maximum of a few teams in recent history. Additionally, the league makes it virtually impossible to exit, as selling of a team is the closest they come to exiting the market. Through
A salary cap gives all the teams an equal chance to sign players. It also keeps teams with a lot of money not able to acquire every all-star they want , or any player who is a free agent. Some Major League Baseball teams like the Anahiem Angels and the Atlanta Braves are owned by very wealthy people and companies. The Anaheim Angels are owned by Disney.(Worisnop, 128) So with no surprise the Angels can produce a team which can be very competitive, and have several all-star players. Just recently they exercised this advantage by signing Mo Vaughn for ninety million dollars over seven years.(Antonen, 2) There were at least four other teams that wanted to sign this all-star, but the Angels easily had the money, and outbid everyone who wanted to sign him. If there was a salary cap in Major League Baseball then the Angels would have thought twice about giving that much money to one player. With the its roster for one year. So giving one player 12.8 million dollars for one year does not really make sense if the salary cap is fifty million dollars a year. That would leave only 37.2 million dollars for the twenty-four other players, which equals each player getting on average a little less than one and a half million dollars a year.
Business deals happen every day; Contracts expire, renew, and are negotiated without the public knowing for many large corporations and even sporting leagues. However, some contract changes cannot escape the media’s attention. The National Football League (NFL) is facing an expiration of its Collective Bargaining Agreement (CBA) (NFL Lockout Now One Month Old). Currently, the agreement has expired and NFL team owners have selfishly chosen to “lock” the players out. The term lockout means that the players are essentially not allowed to participate in any team activities or duties until the owner’s rescind this lockout. While many believe this is simply a battle between team owners and a player union, it can only appear to most as a selfish act of the NFL owners trying to rich, greedy men in expensive suits, and the only people they are hurting, are the fans of football.
After comparing and contrasting the National Hockey League rules and USA Hockey league rules, I think I prefer USA Hockey rules because the game focuses more on the development part of the game where NHL games focus more on pleasing the crowd, and politics are not involved in USA Hockey...to a point. Hockey is a great game that can be played almost anywhere there is ice, and it gives people many lessons in life. So next time you watch a NHL game, think about how it is only to please the crowd and a USA game is to have fun and learn the game more thoroughly.
Global BC, "The NHL in Winnipeg: the economic impact." Last modified May 31, 2011. Accessed January 8, 2012. http://www.globaltvbc.com/the+nhl+in+winnipeg+the+economic
The problem with this is the inflation of players' salaries. When players are drafted young, they demand to be paid what they want; teams pay them millions right out of college.
...know" (The Canadian Press, 2013). Hockey is one of the most difficult sports out there, and dropping the gloves and looking another fighter straight in the face is one of the most challenging parts of it. Getting rid of fighting will not necessarily make the game safer, and it could potentially cause a decrease in the number of fan viewership. The players and leagues understand what they are getting themselves into and they are aware of the culture of the sport, which is rich with fighting history. They respect that aspect of the game, and they respect their opponents as players and fighters. There will never be a time when everybody is happy about the state of fighting in hockey, but for now, the NHL is taking the right steps toward maintaining this historically important part of the game, while also making adjustments to keep the players as safe as possible.
Poplawski, Wade, and Michael O'hara. 2014. The Feasibility of Potential NHL Markets under the New Collective Bargaining Agreement. Journal of Sports Economics. (1): 64-77.
Abstract: Collegiate athletes participating in the two revenue sports (football, men's basketball) sacrifice their time, education, and risk physical harm for their respected programs. The players are controlled by a governing body (NCAA) that dictates when they can show up to work, and when they cannot show up for work. They are restricted from making any substantial financial gains outside of their sports arena. These athletes receive no compensation for their efforts, while others prosper from their abilities. The athletes participating in the two revenue sports of college athletics, football and men's basketball should be compensated for their time, dedication, and work put forth in their respected sports.
In 1970, a hotdog costs fifty cents, a pop costs one dollar, a ticket to a NFL game costs fifteen dollars and the average football player made between nine and ten thousand dollars. Jump ahead almost 40 years and a hotdog that cost 25 cents now costs on average five dollars and fifty cents, a pop costs six dollars, a ticket to an NFL game costs 100 dollars and the average player gets paid over two million dollars! Times have changed. Because of all of those price changes, and insignificantly the salary of players, in 1994 the National Football League introduced the first salary cap that allowed owners to spend a certain amount of money on players. The Players Union and the National Football League did this because for one, they were tired of players getting thrown from club to club just being a price and two to make things more equal between the teams. Today, money and fame have made players and owners very greedy and cocky people. Players ask for negotiations when they are making well over a million dollars a year and there are people in the United States that are homeless? That it the biggest reason that the salary cap needs to stay in effect. If the salary cap goes out the window, just like it did this past season, a sports fan can kiss NFL goodbye in ten years from now because there will not be enough money to pay all of the players. There should be a salary cap in the National Football League because it allows organizations to be equal and have a better chance of competing with each other and it may put players in their shoes so they know they can’t have everything they want.
...ecks and be treated as a farm system for the NFL, NBA, or MLB. If these athletes started getting paid now, at the college level, then the major leagues of these sports would suffer tremendously and lose marketability and money. A final solution to not having players get paid or receive certain benefits is maybe these head coaches of certain universities should not be getting the average 2 million dollars a year to be a coach, in some cases more than the presidents of these universities.(Chicago Tribune) There could be major strides made by simply merging that athletes shouldn’t get paid in whole dollars, but should receive paid benefits in which they would not have to worry about starving, losing scholarships due to injury or sub-par play. That I think would make the world for college athletes a better place, where both the schools benefit and the players benefit.
...to settle for less, and in compensation a possible retirement plan or some form of benefits should be assembled. The only athletes that I truly disagree with are the ones that can’t differentiate between “needs” and “wants”. Luxuries are wants, and necessities are needs; if they could settle for less (yet still reasonable) money they would avoid lockouts and holdouts, and continue to entertain our society, which is their whole purpose.