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 A good question here - Player Salaries

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umteman Posted - 07/29/2013 : 10:29:54
Are player salaries out of hand?

Sometimes it does seem that businessmen who buy a sports franchise suddenly lose all the business sense that made them someone who could buy a sports franchise.

Did you hear about the retired proctologist? He spent 40 years saying "what's a place like this doing in a girl like you?"
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irvine Posted - 08/03/2013 : 18:08:43
With the cap going down for the first time since it was created, perhaps we will see teams learn and plan accordingly going forward.

What I mean by this is, we may start to see players who would 'normally' be offered $6M per, start getting $5M per on a global basis (NHL wide.) to help prepare for caps going down.

slozo Posted - 07/31/2013 : 04:52:56
Sometimes, when there are market changes, the factors inside that market need a bit of "lag time" to catch up to it. I think that's what is happening now . . . as within the current cap, many of the salaries are probably too high.

It's the nature of the beast and a fluctuating cap system that went down for the first time ever. It will correct itself.

"Take off, eh?" - Bob and Doug
The Duke Posted - 07/30/2013 : 19:40:06
I try not to concentrate or dwell too much on things that are out of my control.......and..........theres no strike this season.....

Lets just heave back......enjoy a beer and watch some hockey...
umteman Posted - 07/30/2013 : 11:35:11
Originally posted by OILINONTARIO

Before somebody else brings it up, it's called supply and demand. What the market will bear. Checks and balances. Blah blah blah.

The Oil WILL make the playoffs in 2014.

And that is the question I intended - does the market warrant the salaries players are being paid? I am sure the employees in those other businesses the owners run must justify their salaries by sending something out the door each day that is worth more than they are paid for the day. I don't mind professional athleats making good salaries, but should it be even more than the team brings in?

Did you hear about the retired proctologist? He spent 40 years saying "what's a place like this doing in a girl like you?"
OILINONTARIO Posted - 07/30/2013 : 10:33:12
Before somebody else brings it up, it's called supply and demand. What the market will bear. Checks and balances. Blah blah blah.

The Oil WILL make the playoffs in 2014.
The Duke Posted - 07/29/2013 : 19:12:04
Its hard to say Umteman.......

I guess to the common person, all pro sports players are over-paid. When you make millions playing a game ( which most of them love ) it sure is a fine way to make a living.

When it comes to hockey, i guess the highest paid players receive roughly close to 10 million per season.....i really can`t think of any1 who makes over 10 mill per year on a consistent basis....maybe there is.....but roughly 10 mill per is the going star rate i suppose.....whats Crosby and Ovie ?...9 - 10 maybe ??

When you look at other sports, ( football - baseball - Basketball ) i can think of a couple of mind blowing salaries per season compared to hockey.

What does A - Rod get per season ??....25 million i think.....over 10 years....something like 250 million.

I remember when Air Jord. came out of retirement, ( i believe ) he signed a 1 year contract with the bulls for 30 million.....

I guess when you look at hockey and the physical element of the game, ( compared to baseball and basketball ).....maybe they`re not over-paid at all.

Football players take a huge pounding but what do they play ??....16 games total per season ??.....and only 1 game per week ?? least they always have a full week to heal their that to hockey players who i guess average 3 games per week and a lot of travel time, seems like they ( hockey players ) have to up with much more physical stress and fatigue.
JOSHUACANADA Posted - 07/29/2013 : 12:59:24
I have no sympathy for the Wild. They locked up 2 of the biggest free agent fish in 2012 with ridiculous contracts in length and cost. They offered them huge signing bonuses, which would have made it mandatory for them to play a full season and qualify for the playoffs to make a profit. Then they pleaded poor at CBA negotiations. I don't hear other teams with internal caps who spent to the floor complaining this year. I wonder how the NYI and Ottawa did by spending at the cap floor and not near the ceiling. They created this situation and are one of the best examples of how the last CBA was flawed.

"I now realise that the Toronto Maple Leafs, Canada's finest hockey team, is better than the Ottawa Senators - and always will be. PS - LOVE that Dion Phaneuf! "
Beans15 Posted - 07/29/2013 : 12:31:37
With the cap going each team will pocket another $10 million per season next year so that will resolve many issues.

One thing people need to appreciate is that very few sports teams in NA are annual profit generators. In most cases the value of the franchise is increased valuations year over year. The bet is that a team that can run close to break even will value over time and if the team is a money loser the hope is the annual losses are less than the year over year valuation changes.

There are very few teams that are actual profit drivers year over year in any pro sport with the exception of NFL football. The business people who buy sports teams are making a business bet no differently than they do if they are buying stocks, bonds, or whole companies. There are risks in all of them. The risk in pro sports is does the gain found in the annual valuation change make the annual operating profit/loss maintain a positive long term investment??

The other way to look at it is that virtually every pro sports owner has various other revenue streams. Pro sports teams are more like super duper expensive toys for uber rich people. They don't care if they lose a bit of money if they can brag at the country club on the weekends. They don't want to lose a lot but I'm pretty sure that Craig Leipold and Phillip Falcone are not too worried about money when their net worth is listed at $2.8 billion.

Ottawa, the best coached team in the NHL, with MVP like players such as Chris Neil, will win the Cup in 2013!

nuxfan Posted - 07/29/2013 : 12:18:00
part of the problem is the bonus situation combined with a lockout season. Bonuses are paid regardless of whether or not hockey is played, as opposed to player salaries. According to the article the Wild paid 20M in bonuses to Parise and Suter, but only had half a season of revenue to make up for it.

Regardless, the Wild would probably still be money losing over the course of a season. But I don't think 30M per year is accurate going forward.

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