A Look at How the Salary Cap Works and Which Revenue Qualifies to be Split 50-50
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- Опубликовано: 20 июн 2023
- Hey all. Here's another video on the NHL's financial picture. Come for the cats. Stay for the economics talk.
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Shannon makes everything so simple.
For real. I was watching the officiating video he made a couple of days ago with my boyfriend who knows around nothing about hockey, and he told me that he was able to tag along and understand almost everything. In another life, I think Shannon could've been a teacher.
@@user-mr4uo5mw9n wow.
Btw, thats his full-time job
@@user-mr4uo5mw9n so you’re the guy that calls him stupid hockey guy and hates on all the videos?? Damn.
@@user-mr4uo5mw9nleast obvious troll
It's those damned whiteboards I swear
This man should be awarded a PhD in hockey and the workings of the NHL. Incredible detail. Thank you for the education on this!
Interesting Coyotes fact: they made more in ticket sales at the Mullett Arena than they did the previous year at Gila River Arena in Glendale.
That's just part of the Mullet Magic
In the smaller rink, the tickets were so expensive due to limited seating. :(
I went to an Yotes vs Avs game, bought the seats 2 months in advance, secondary market...nearly $300 a seat...before the game they were going for $70 and the place was 1/2 full...someone bought seats and trying to flip em' then it's a empty house.
The gambling cycle you describe in this video pretty much destroyed a family member's life and created years of financial burden and grief for the people around this individual. I can't believe we've just decided that it's fine to let this crap slide uncontested into every aspect of sports presentations now. It's a pox.
Gambling is seriously horrible. If there are regulations on drinking, and other drug use, there should also be significant regulations on gambling.
You know you can gamble responsibly right
@@simoncohen9323You know you can drink responsibly, right?
Still some people get addicted to that and alcoholism destroys life. So, regulations have been implemented.
Guess what? It's the same thing, if not with worse consequences, with gambling.
It really is unbelievable how pervasive it has become. It should go back underground.
@@sebastiencarrieres8825thats a small number of people that get addicted. Its not that big of a problem. Just be smart about it. If someone goes to far its their own fault
Totally agree with you on sports betting. Makes me cringe every time. Must be hell for addicts getting reminded every ad break.
As a recovering gambling addict I am strongly against and sickened by the bombardment of gambling ads on tv being shown as just your average Milk Commercial.
It does stirr up demons and tests me each time I see one. In a way it stengthens my fight, but also seems like an endless battle where I'd much rather benefit of the bliss of ignorance.
I'm very much so considering starting a petition to limit or rid the gambling ads in Canada like in the UK. Who here would sign it?
Alcoholics go through this as well
On the topic of money THG, I'm so thankful that you don't do in video sponsorships/advertisements! I'm sure you've had plenty of offers from gambling sites and the like, but I appreciate not having to skip over a 90 second pitch when watching.
This is why I love watching you, Shannon. I love hockey, but I am no historian of hockey, or understand the business side. That being said, I know I can come to you and I will always learn something new about hockey and the NHL
I am so glad you mentioned the gambling ads. Here in the UK English football clubs have to stop having gambling companies as a teams main title sponsor by 2026. Gambling ads are still everywhere but they are slowly reducing them. Only horse racing is exempt from reducing in sponsorship.
I love these informational videos I just got into hockey in 2021 so relatively new amd always trying to learn stuff about the game thank you Shannon for your hard work to this channel I literally watch every video no matter what the subject is
I vote for Shannon as NHL commissioner.
On the UK gambling ad situation, yes there are strict regulations on paper, but in reality they’re not enforced or worthwhile. There’s recently been a situation with a footballer Ivan Toney. He’s been banned for betting (footballers aren’t allowed to gamble) but his club are sponsored by a major betting company. Every game has almost more gambling adverts than actual sport and many stadiums are sponsored in some way by gambling companies. Although our regulations appear to be much tighter, in reality our sport is even worse than the NHL when it comes to gambling ads
Thanks for touching on this. I was wondering if expansion fees would impact the salary cap. But it looks like it doesn't.
Love all of your content on TEG and THG
Not sure why you think TEG and THG are the same, they are obviously two completely different people and not the same guy at all. They don't even like each other.
Bettman's at home, tuning in THG. "Pop-up beer ads! That's a great idea!!"
THG: “the NHL is doing really well”
This quote was brought to you by Gary Bettman
Thank you for the information. Shannon. Understand NHL numbers
Thank you for everything that you post! I found your channel a week ago and I have learned so much more about the game because of you! Love you buddy!
The NHL needs to forget advertising and charge us virtual tickets. 60,000 people watching at $10-15 a person for a single game would give fans the ability to watch the games they want, and I'll bet they sell more tickets...
Excellent video as always!
When it comes to revenue from TV contracts, at least the NHL hasn't gone down the route that MLS has with Apple where 95% of the games are behind the paywall. As a result, MLS has become very reliant on ticket sales, concessions, merchandise, parking, club seat sales & sideline ads.
Despite what people want to say about MLS being on the up and up and the absurd amount of money with a handful of clubs, they are by far have the weakest coverage of the national sports leagues, right there with National Lacrosse League.
Gross, soccer
This is complete misinformation.
(1) 40% of MLS games are in front of the paywall with Apple.
(2) EVERY league (other than NFL) puts their games behind the ginormous and highly expensive paywall called cable TV.
In terms of affordability, what’s cheaper for fans: watching every one of your team’s MLS games, or every one of your team’s NHL games?
By my math, the full MLS season package on Apple costs far less than one *MONTH* of ESPN, ESPN+, TNT, NHL Network, and your local RSN. That deal with Apple will hurt MLS’ finances, but it is absolutely a home run in terms of availability and affordability for fans and anyone who tries to argue otherwise isn’t dealing with the reality of what the traditional cable bundle costs and the associated blackouts that really screw fans.
I dont even notice the board ads. Im too busy following the play.
ca.sports.yahoo.com/news/nhl-fans-are-already-fed-up-with-the-new-digital-board-ads-153359581.html
fantastic content
Love our work
Love that jersey. Wish the Wings would do black.
''Fans of those 3 teams want the salary cap to go away, they want it gone'' no i absolutely do not, i despise the Yankees model of buying championships and i think the salary cap was one of the best thing ever implemented in the NHL that sets us apart from other sports
Other sports have a salary cap too
@@macgobhann8712besides the NFL which has a lot of loopholes it's very different MLB has a luxury tax not a salary cap and NBA has a cap but you can go over and pay luxury tax
It’s funny how euros talk trash about the American way of sport with salary caps yet their top soccer league just had the same rich team buy 6 of the last 7 championships hahah
It’s funny how euros talk trash about the American way of sport with salary caps yet their top soccer league just had the same rich team buy 6 of the last 7 championships hahah
These types of videos are why I keep coming back.
THANKS!!!
Shannon's position on gambling is spot on.
There's at least one or two of the gambling sites that says in the small print... "You must be present in NJ, OH, VA (and there's one other state ...?)" Can you imagine how much they will make when it expands to 50 states?
I think sports gambling is legal in every state. Just different companies might not have licenses to operate in every state.
@csolivais1979 as of early 2023, sports gambling in some form was legal in 33 states. Some allow online gambling and some allow in-person gambling.... That is according to a 'Forbes' Magazine article.
@The Hockey Guy: That was very interesting, thank you. I share your sentiments regarding the gambling aspect.
League in the green? Nice. Things on the up and up for the show
so this is what it’s like to have notifications turned on
Welcome back
Big thanks for gambling rant
I'm not sure if you mention the revenue percentage between Canadian and American teams. I've heard Canada is by far and a way caring the league. True?
i wouldn't mind digital ads, if they used their brains, and some of that six billion to do it right. they need to stop with the motion ads, because they detract from the game itself, and perfect the tech so that players, sticks, and pucks don't disappear. i have no problem with the boards changing ads off screen. i hope they lowered the cost of the actual stationary board ads though. seems unfair to pay an exorbitant amount for a board ad, only to have someone else pay to cover it up on tv. might work better if they eliminated the stationary board ads completely, so the surface of the boards is less confusing for the program to cover. the way it is now might make them more money, but it seriously distracts from the sport, which is what old gary has been saying he is trying to grow. the game is confusing enough without a whole bunch of fireworks and cars driving around the boards on tv.
Salary cap will never be based on team valuations because that is a mostly speculative concept, whereas revenues are tangible in the sense that financial records can be audited. An example that those of us who aren't billionaires can relate to is a car. Let's say you own a 1993 Mustang. Let's say someone thousands of miles away sells their 1993 Mustang at Barrett Jackson Auto Auction for $300,000. Basing the salary cap on franchise values would be like your local auto repair shop now charging you 10x the price because you "might" make a profit if you sold your 1993 Mustang like that other guy.
Exactly, it is like owning a home. You don't realize the increased value until you sell it. It doesn't magically generate income because the mythical valuation is going up over time.
3:01 might neutral zone puck possession attract more fans?
These videos are great for new fans. Remember Nashville! (And their early fans cheering for penalties against their own team).
Hard agree on the sports betting ads. Its getting so out of hand that even the TV stations themselves have been paid to include live betting segments into their live shows. Its definitely not going down a healthy road.
I will say tho that the hard cap system isn't really that healthy for the league either. There should be a way for teams that draft and develop their own stars to keep them without counting towards the cap. Even if its only 1 or 2 slots per team for in team drafted players. At least this way teams would have a little bit more flexibility and wouldnt have to give up on a player that they developed.
When were those valuations released?
Ducks owner is building a huge 95 acre master planned area around the Honda Center. I suppose the owner will make money for the hotels from visiting teams. Really looks like a great area.
I’ve never had a problem with the digital ads honestly. I understand the money they bring in and I honestly don’t find them distracting.
Larger problem with gambling is that gambling operations want to make money so ALWAYS game the system. You don't have that much money changing hands without the gambling companies wanting to ensure/increase their profits. Seen it in every sport that gambling gets big in, and nowadays nobody cares if the "fix is in" as long as it looks like it isn't. Heard a gambler give an insight into his operation and he made it clear he won't give away all his secrets but knowing who is "pliable" is key.
Anyone else need a beer right now? I could go for a beer right now.
So, does revenue from the individual team On-Jersey advertisements go towards the "NHL Revenue" (IE, "MILK" from Toronto)? I was thinking no?
Sorry if you cover this and I haven’t reached that part of the video yet.
Do we know why the salary cap doesn’t count in the playoffs? Do other leagues do this?
Before can be write off. You must have spent the money. And is usually money you already taxed on previously.
Love the vids Shannon
you say the money is split between the players and the owners, but does that count towards the salary cap/their paychecks? Or is that bonus on top of it?
would it help teams for NHLPA to favor 20% of hockey revenues being retained by teams before salary cap to pay for future player contracts in resignings and maybe retirement?
Soon we will be able to flash gamble on a coaches challenge
How much do you think the salary cup will go up next year?
In a perfect world as a Knights fan. Hopefully it jumps like, 5M at least.
Gambling is an absolute disease on our society. Unfortunately, people's lives need to be seriously affected before anything is done about it.
I pretty much quit going to Oilers games because of the greed a the concessions stands. After the tickets went up almost 100% in the last 15 years, they still want $16 for a tall can of beer... and $18 for a double mixed drink?
Dasher board ads are already tuned out by me. It doesn't affect the live game at all, so let them get some money.
I don't know how it doesn't affect you when players disappear. But other than that and the moving ads, it's not terrible.
@@csolivais1979 I've never that issue. What team do you follow and what is their jersey color?
We see very little gambling ads in the states it not an issue. Not sorry
maybe distribute 50% evenly to players on a team, with the other 50% to pay for larger contracts? as a simple example, if team has $80 million salaries and 20 players; $40 million split evenly between 20 players for $2 million to each player (pro rated for number of games played, but not going below minimum salary); with the remaining $40 million going to contracts above $2 million for the year?
That sounds like an indirect or round about way of making the minimum salary 2 million.
3:46 build up AHL / minor league hockey to grow fan base for hockey / NHL?
If the NHL didn't have a playoffs and the 2021 season it would have lost even more money trying to bring the game back
We cannot read the green writing. Thanks for listening.
So Covid is the reason I have to watch advertising with hockey going on in the background now.
I mean they would have done it eventually, but man the increased ads do diminish the enjoyment for me
...so why don't Toronto, Florida, Winnipeg, Columbus 6 Arizona win the Stanley Cup?
Poor management and bad luck.
@@TheHockeyGuy With Detroit I think it is more bad luck.
Thanks for the reply
Black jet 70')
It is ludicrous to say that the franchise values should be included in cap calculations. The owners put up real capital, in Ottawa's case over $900 million, to buy these teams which means that capital cannot be used in other investments or businesses. The players have $0 invested in the teams so why should they participate in any capital gains without any investment?
as a stonemason, i believe that i am NOT entitled to have any ownership of the building i am working on. the house belongs to my clients. i am paid very well to do work on their house, but i don't think it would be reasonable for me to demand a share in their property for work i did on their house. the relationship between the players and the owners is at least attempting to reflect real world working relationships. not perfectly, but it's an attempt.
The gambling revenue in the States is that high while it's still illegal* in many states, including the two largest states (California and Texas), so it could really explode much more.
*while it is illegal here in California, if you want to bet, you can find a way. The people I know who do it just have a friend in another state place bets, or use some offshore crypto-based bookie.
Shannon and his gambling chatter so true
6b divided by 32 teams
Good to see nhl doing well financially, I just hope they don't get too greedy and do something stupid, like move to no salary cap era or try to add more expansion teams just to make more money.
they should get rid of the cap.....
@bclmax Wouldn't that create what NBA and MLB has now where rich teams get loaded with superstars and the other teams have little chance of winning? Maybe I'm wrong.
@@biglebowski3961 well as a leaf fan i have no problem with that. we print money
@@biglebowski3961 i dont think money buys trophies..yankess have not won in a long time...denver nuggets are not an expensive team....
@bclmax Yeah, sorry about your leafs. Hope you are right. Just want teams to be fairly even, plus I don't see salaries being equal to those of baseball or basketball.
The NHL generating more revenue is more about inflation than their product
Thanks for the gambling advertising discussion. So annoyed to constantly hear the odds from the analysts. There was an open letter posted to social media on May 16 asking Gretzky, McDavid and Matthews to not promote iGaming any further. It will be interesting to see who is in the ad's this fall.
When you die you need to donate your brain to science because you, my friend, are wired in such a perfect way. The world left will need to know how you manage just spit reality in such a way the lowest common denominator will get it.... Also, the correlation with income and gambling has been proven in many peer reviewed studies.
I just wanted to let you know that there is no way you're wired like the rest of us "normies." Respect.
What do the taxpayers get for subsidizing the owners/players?
The fact that the NBA salary cap jumped up from ~80mil in the mid 2010s to ~130mil now compared to the NHL really says something about league management as a whole.
I love this sport, but the parts that entertain me - high skill, clean hockey that has any rules ever enforced - just doesn't seem to be on the radar for a league run and reffed by ex enforces and presided over by a completely out of touch commissioner.
Well the nba also sold its soul to china. Their revenue skyrocketed thanks to china helping them out.
Unforch.
Forgot about video game licensing Shannon, which I assume would be quite expensive or a cut of each video game sold. Not sure how it works. Other than that. Great video as always
It may not count as revenue in the context of revenue split between owners and players since the games are NHLPA licensed and may have their own fee.
In any case the NHL games don't sell very well. Something like 500k at full price (when actual money is made), and about the same on sale last I saw figures. Which obviously also limits the money made on ultimate team sales. But it's not nothing of course.
@@Eminar5 First i think you underestimate the money made from microtranactions in ultimate teams etc. as well as the NHLPA is not the only licenser of the game. The NHL is as well. So it has to be split between NHL and NHLPA because the NHLPA has no rights to IIHF teams, NHL teams names and logos etc. I would assume they pay a flat fee, someone in the 15-30 million dollar range per year for all the rights from IIHF Players associations, women's leagues, NHL rights etc
@@bingboone9474 My point about the NHLPA was that licensing fees for the video game are probably already split and therefore not part of the salary cap conversation.
As for the microtransactions we can only speculate. But if a 100 000 players spend money on mtx at an average of $10 after taxes and transaction costs that's $1M. The estimate may be off but we're not talking double digit millions, the player base is quite small. With EA probably making in the vicinity of $20M on game sales (roughly half of what the consumer pays at full price is usually estimated, the rest is store profit margin, taxes, console licensing fees and such). And this needs to cover development costs and overhead, as well as hockey licensing fees and profit.
While talking about addiction can get derailed by the political-moral debate of 'failure of willpower and your fault' vs 'passive disease victims' views, gambling ads are a bit like regularly taunting a former drug addict with drug paraphernalia; if you're not directly causing them to relapse, you're increasing the probability it happens. not the most ethical of revenue models.
Thank you Shannon for calling out the ridiculous gambling ads that are making games harder to watch and seem wildly irresponsible by everyone involved. And now, it's not just the league and big networks doing it, but now your fellow RUclipsrs and content creators. Really sad to see guys like Steve Dangle and Spittin' Chiclets get lured in as well and start selling gambling to their listeners.
I never understood why people want the CAP to go up. Your team isn't getting better players, they'll just pay more to the same ones. And many teams already spent a good chunk of the increase even before it goes up by signing bigger contracts, "because the CAP is going up, so we'll be OK".
And more important, YOU'RE PAYING FOR IT. Why would you like to pay more for the same product? The money comes out of you.
Plus, for every million the CAP increases, another one goes to the owners pockets. Why would you help billioners get wealthier at your expense?
This CBA is kind of not logical: the owner is an entrepreneur who sells a product and hires staff (aka players, etc.). He / she takes a business risk based on his / her business plan. So this whole escrow doesn’t make sense: the company hires people with individual compensation packages. As the player is not a shareholder but only an employee, it is not his problem if the organization loses money or not. The entrepreneur operates well he/she/it will make more profit or if not well we know. Covid is a business risk that an entrepreneur takes and has to deal with. To say my staff owes money to the organization, is not logical. That staff organizes themselves in unions is an employee right. Doesn’t mean they become a shareholder.
Would it be more logical if you considered that the owners, instead of taking those huge losses, shut down for two seasons and left all of the players unemployed? The CBA is a contract between the owners and the unionized players. The players agreed to the escrow clause because 95% of their salary is better than 0%.
I love your comments about gambling in the game. I believe it is terrible for the game.
Now I'm probably a little biased as a Leafs fan; but teams that make more money should be allowed to spend a little more too. It definitely shouldn't be loads more, but the odd % point or two seems reasonable enough.
That and I don't know if it does already, but there needs to be a smarter cap that takes into consideration the weaker Canadian $ & states with extremely low tax rates. It's hardly a coincidence teams in the lowest tax states are making finals & winning cups on the regs
not sure why the top 10 teams have to supplement the rest... so a team that does well gets punished and teams that do nothing get rewarded...NHL is crooked as heck and the fans are the big losers....
Because otherwise you end up with a sport like baseball where it’s the same teams winning every year and anytime a small market team drafts or develops a player the big teams throw huge contracts at them. This keep parity in the league and NHL arguably has the best parity out of any of the big 4 North American leagues right now.
32 healthy teams make for a stronger league.
I'd hate to be a hockey fan if only the rangers and leafs were competitive every year and you had to choose between only 4 different teams every season to root for because only that many have a chance to win the cup.
If the NHL never implemented revenue sharing, Canada would have lost all their teams except Toronto and Montréal. Everybody likes to conveniently forget that and complain about Arizona.
The problem is the NHL pushing to keep teams in markets that will never make money and leaving out markets like Quebec that would bring in a ton of money
Could not agree more about the annoying gambling ads. Totally degrades the experience of being a hockey fan to be encouraged to gamble.
Hockey fans are still gonna act like a team losing $30 million is the reason the cap doesn't go up.
Only problem I have with you saying the players agree with everything just cuz they had to sign the contract. Dont want to miss a full season or more just cuz everyone doesnt get what they agree too.
Same is true for owners and the league.
I don't like the salary cap because this is professional sports, not a children's game. If your team goes bankrupt because you overpaid your players, that's on your owner/gm, you can't blame the system.
Tampa would've made money if they weren't 8 figures over the cap in 2020 2021