Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post - [News] UPD: Geoff Ward officially named the franchise's 20th head coach (2 year deal)

ricardodw · 09-14-2020, 03:43 PM

My guess is that Ward did not get a raise from what he got paid last season.

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The League in general is in a very tight spot financially.

37 % of league revenue is from ticket sales. I do not know if this includes box seat sales and likely does not include corporate sponsors and arena concession revenue.

That means that the 20-21 revenue projections will be down by 40 %.

Anyone object to this logic so far?

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TV viewership for all sports is down by 15 - 20% (expect golf). Likely because of political activism by players.

Will there be an influx of revenue from increase in TV contracts?

Not likely but say that it breaks even and does not go down at all.

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Simple mathematics say that a 40 % drop in total revenue means that the 50% of revenue that goes to the players salary as stipulated by the CBA should drop by 40% and the owner's potion of the revenue will be down by 40% as well.

Each team was generating 164 M in gross revenue. The Players on the team got around 82 M and the Owners got 82 M to pay for admin and coaching salaries and travel and accommodation and interest payment on their loans.

In 2020-21 gross revenue for each team will be around 98 Million or for purposes of this exercise make it an even 100 M. 50 M to the players and 50M to the owners.

There would be absolutely no escrow being returned to the players from the 2019-20 season.... 12 cancelled regular season games would mess up the projected revenue of 164 M

Now the CBA negotiated salary cap based on projected 20-21 revenue should be 50 M.

The league has made it stay at 81.5 M But holding back 20% in escrow... meaning that the players will actually get paid 65.2 M . No expectations at all of players getting escrow Money back. In fact the players are borrowing against future revenues to tune of 15M per team.

The average ownership group will be taking a 82-50 - 32M loss PLUS an extra 15 M that they are giving to the Players A $47M loss from 2018-19

The year after that escrow will be 14-18%..??? ie the revenue will exceed 2018-2019 revenues. Tell that to any banker when negotiating an interest rate.

It would be basic financial insanity for the owners of the best case break even franchises (2018-19) not to have an internal cap of closer to 63M so that they don't have to take out a loan to pay their players.

The teams that are best case break even based on their 2018-19 revenue generation are the ones that were below 164M

Edmonton Oilers $154M
Minnesota Wild $149M
Tampa Bay Lightning $140M
Calgary Flames $138M
Anaheim Ducks $137M
Nashville Predators $135M
Buffalo Sabres $135M
Colorado Avalanche $130M
Carolina Hurricanes $128M
Ottawa Senators $127M
Winnipeg Jets $127M
Columbus Blue Jackets $119M
New York Islanders $115M
Florida Panthers $105M
Arizona Coyotes $102M

Anything over 62 M of cap salaries will be paid by borrowing.

When you start borrowing money to pay salaries you look to cut back all salaries that you can.

Flames will not be signing Hall to a 7M contract. Every team owner is looking to dump salary for draft picks or prospects.

09-14-2020, 03:43 PM	#563
ricardodw Franchise Player Join Date: Apr 2007 Exp:	My guess is that Ward did not get a raise from what he got paid last season. ---------------------- The League in general is in a very tight spot financially. 37 % of league revenue is from ticket sales. I do not know if this includes box seat sales and likely does not include corporate sponsors and arena concession revenue. That means that the 20-21 revenue projections will be down by 40 %. Anyone object to this logic so far? ---------------------- TV viewership for all sports is down by 15 - 20% (expect golf). Likely because of political activism by players. Will there be an influx of revenue from increase in TV contracts? Not likely but say that it breaks even and does not go down at all. ------------- Simple mathematics say that a 40 % drop in total revenue means that the 50% of revenue that goes to the players salary as stipulated by the CBA should drop by 40% and the owner's potion of the revenue will be down by 40% as well. Each team was generating 164 M in gross revenue. The Players on the team got around 82 M and the Owners got 82 M to pay for admin and coaching salaries and travel and accommodation and interest payment on their loans. In 2020-21 gross revenue for each team will be around 98 Million or for purposes of this exercise make it an even 100 M. 50 M to the players and 50M to the owners. There would be absolutely no escrow being returned to the players from the 2019-20 season.... 12 cancelled regular season games would mess up the projected revenue of 164 M Now the CBA negotiated salary cap based on projected 20-21 revenue should be 50 M. The league has made it stay at 81.5 M But holding back 20% in escrow... meaning that the players will actually get paid 65.2 M . No expectations at all of players getting escrow Money back. In fact the players are borrowing against future revenues to tune of 15M per team. The average ownership group will be taking a 82-50 - 32M loss PLUS an extra 15 M that they are giving to the Players A $47M loss from 2018-19 The year after that escrow will be 14-18%..??? ie the revenue will exceed 2018-2019 revenues. Tell that to any banker when negotiating an interest rate. It would be basic financial insanity for the owners of the best case break even franchises (2018-19) not to have an internal cap of closer to 63M so that they don't have to take out a loan to pay their players. The teams that are best case break even based on their 2018-19 revenue generation are the ones that were below 164M Edmonton Oilers $154M Minnesota Wild $149M Tampa Bay Lightning $140M Calgary Flames $138M Anaheim Ducks $137M Nashville Predators $135M Buffalo Sabres $135M Colorado Avalanche $130M Carolina Hurricanes $128M Ottawa Senators $127M Winnipeg Jets $127M Columbus Blue Jackets $119M New York Islanders $115M Florida Panthers $105M Arizona Coyotes $102M Anything over 62 M of cap salaries will be paid by borrowing. When you start borrowing money to pay salaries you look to cut back all salaries that you can. Flames will not be signing Hall to a 7M contract. Every team owner is looking to dump salary for draft picks or prospects.