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View Full Version : Luxury Tax vs. Salary Cap - or why the players are right.



ken_valyi
08-18-2004, 08:06 AM
Most recent BS (http://tsn.ca/nhl/news_story.asp?ID=95233&hubName=nhl)

Choice bits from the story-


The NHL feels it pressed the issue in a bargaining session July 21 by introducing six new ideas for a new system but the NHLPA translated all six as salary cap mechanisms - something the union says it will never accept.

``The union today formally rejected the six concept proposals we had made,'' Daly said.


The NHLPA did propose a system back on Oct. 1 that included a luxury tax, revenue sharing, a one-time five per cent rollback in salaries and some changes to the entry-level system.

The union's luxury tax proposal would have seen more than half of the league's 30 clubs pay up in 2003-04, the threshold being a $40-million US payroll.

It's a luxury tax that would have more teeth than Major League Baseball's, where only the New York Yankees paid up in 2003.

``I still think that's a framework that addresses the issues but at this point they've shown no interest in that,'' said Saskin.

League commissioner Gary Bettman said Aug. 4 he had absolutely no interest in a luxury tax.

So in a free market society such as ours, which of these groups are at all in touch with reality. The owners who want to set an maximum limit on what teams can pay out in salaries, or the players who set no limits but charge a tax on free-spending owners that gets distributed amongst the teams that stay within the proposed untaxable limit.

The salary cap can be worked around by even the not-so savy owner, with a personal services contract that isn't related to the sport and/or salary deferal, which leaves no course of action or compensation for the poorer teams. A salary tax does that, teams that want to open the bank will pay the price to everyone... and that's why it's not going to happen, no team wants to pay the price.

Unless they resolve this before the end of the World Cup, this season, and possibly the NHL is a bust. C'est la vie.

Richard Cabeza
08-19-2004, 08:19 PM
The way I see it, the owners are the dumb***es who were willing to shell out big bucks (read-FAR more than what they're worth) for guys like Marty Lapointe and Luke Richardson. No one held a gun to their head to offer these guys rediculous amonts of money. (and don't even try to blame a player for accepting one of these inflated offers-anyone,hockey player,doctor,garbageman, in the same boat would sign the dotted line in a heartbeat)Then they cry foul when the franchise type players catch on and want WAY more than their fair worth too. The owners brought this apon themselves IMO.

ChrisFrez
08-21-2004, 08:49 AM
The way I see it, the owners are the dumb***es who were willing to shell out big bucks (read-FAR more than what they're worth) for guys like Marty Lapointe and Luke Richardson. No one held a gun to their head to offer these guys rediculous amonts of money. (and don't even try to blame a player for accepting one of these inflated offers-anyone,hockey player,doctor,garbageman, in the same boat would sign the dotted line in a heartbeat)Then they cry foul when the franchise type players catch on and want WAY more than their fair worth too. The owners brought this apon themselves IMO.


100% Agree with you!!!!

I think they just need to lock these two sides in a room and not let them out until they hash out a deal! I want Hockey in 2004 / 2005!!!!!

ken_valyi
08-21-2004, 09:06 PM
100% Agree with you!!!!

I think they just need to lock these two sides in a room and not let them out until they hash out a deal! I want Hockey in 2004 / 2005!!!!!

Throw in a couple of bottles of wine, some candles and soft music and Gary and Bob may have a little announcement of their own.

NjDevilsFan
08-21-2004, 09:38 PM
comon guys 3 mil just isn't enough to feed ur families now a days. A salary cap kills the players and there families

ken_valyi
08-22-2004, 08:05 AM
comon guys 3 mil just isn't enough to feed ur families now a days. A salary cap kills the players and there families

LOL! I remember Don Cherry trying to claim the Kirk Muller was actually losing money when he signed with Dallas several years ago for like $900,000. It was a noble effort on Grapes part, but yeah, they live in a different world than we working stiffs.

Still the economics of the game are totally within the control of the owners... even in a free market like the players are advocating. There is no reason to believe that if the players agreed to salary cap that owners would do anything more with that money than line their own pockets. I think both sides should be arguing over how they should split the bill to reduce ticket prices $10 across the board, and set up programs that allow underpriviledged kids seats to games (especially in arenas where they're not selling out).... but that's just delusional on my part.

NjDevilsFan
08-22-2004, 08:33 AM
I fully agree, I really wish either side wern't as money hungry and would do something like that.