Re: negotiations new offer and counter offer
posted at 9/16/2012 10:58 AM EDT
In response to kelvana33's comment:
I'm not on the owners side by any means. they want 5 year limits on contracts but continue to hand out deals that exceed 5 years. That makes sense.
the players have no costs. the owners pay all the bills. So how can the players justify 50% of revenue? Do they pay the insurance, rink maintenence, other employees, travel costs?
Although 50-50 sounds more fair than 55-45, that's really as deep as it goes. In actuality, the argument that the owners deserve more because they pay all the bills makes no sense on that merit alone. There are many examples in business where employees are paid more than 50%.
That percentage is usually defined by how big gross profits are, coupled with the impact on gross profits of the emplyee. An example being the car business. There are many factors that dictate the value of a new Ford. Employees, electronics, fabrics, mechanics, metal, rubber etc. you add them all up, and you've got a car. In the hockey business, those additional, components on top of salaries are virtually non existent to complete the product.(uniforms, skates, sticks). In hockey, your whole product is simply the strength of your players. 10 guys quit the assembly line at Ford(or 10 key managers), the product doesn't miss a beat. Take 10 core guys from the B's right now...replace em with what's kickin around that can be had today, and the team plunges. Attendance plunges, and so do profits.
As far as "how big" the profits are, usually people are paid a higher percentage of revenues on a business that does 1 million a year, vs one that does 100 million, and that's simply because regardless of how big you are, you must pay competitive wages, and the percentages are higher for the little guy.
I know of several businesses, where the owner would dream of keeping 10% for themselves.
Good lawyers get way more than 57% of the firms billing.
Good consultants may get up to 75%, and that's because those commanding that price can bring in a ton of new business the company didn't have, plus they do all the work. Lets say that's 500 k a year...the employer just picked up 125 grand for basically doing not much of anything. Good deal
The little antique shop. It takes in 200 grand a year gross profit. It's staffed by the owner and 2 employees. If one of those is really good, and honest and trustworthy, the owner may give him a big raise, change in title, so he can pursue other things. Currently, the 3 take out 120(employee a 25, b 35 and the owner 60). The new deal is emplyee a 20, b 25, c 45, and 35 for the owner whose determined to achieve a 6 handicap, and only drop in once a week for updates.
These type of arrangements are as common as rain. The belief that owners are entitled to have more than 50, merely because they're owners, doesn't fly.