[Devils-list] Rising salaries worry NHL
JM2714@aol.com
JM2714@aol.com
Wed, 22 Aug 2001 21:15:46 EDT
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Rising salaries worry NHL
By Kevin Allen, USA TODAY
By Jack Dempsey, AP file
NHL MVP Joe Sakic was believed to be headed for a $10 million contract, but
it didn"t happen.
Related items
While NHL salaries have climbed this summer, tension also has risen sharply
among those debating whether the league can afford a structure where the
average pay is about $1.5 million.
"We aren't as deep into the quicksand as baseball teams, but there is no
question the gap that didn't exist a few years ago is widening rapidly,"
Vancouver Canucks general manager Brian Burke said.
NHL payrolls are believed to be at 60%-70% of league revenue, a figure that
could rise with lucrative signings by a premier class of free agents this
summer.
"About 22 or 23 teams get it, and seven or eight don't," Burke said. "It's
only six teams spending out of control. Maybe some can afford it, but the
ones who can't are taking a business that already has serious problems and
making it worse."
When Marty Lapointe, whose career best was 28 goals, got a $5.5
million-a-season average from the Boston Bruins, it seemed as if rival
general managers began to beat war drums for the expected major confrontation
after the collective-bargaining agreement expires in 2004.
"This is just saber-rattling," agent Bob Murray said. "The people who own
these teams aren't stupid. They didn't get to the business position they are
in by being dumb. If they are willing to pay these salaries, there are
financial reasons why."
Top 10 salaries for 2001-02
Player, team Salary
Peter Forsberg, Col. $11,000,000
Jaromir Jagr, Wash. 10,007,165
Paul Kariya, Ana. 10,000,000
Pavel Bure, Fla. 10,000,000
Joe Sakic, Col. 9,892,727
Chris Pronger, StL 9,500,000
Teemu Selanne, S.J. 9,500,000
Rob Blake, Col. 9,285,194
John LeClair, Phi. 9,000,000
Brian Leetch, NYR 8,680,000
Over the past two seasons, the NHL had turned the tide so revenues finally
were growing faster than salaries, but given this summer's increases and the
anticipation that Alexei Yashin will make $8 million-plus in his new deal
with the New York Islanders, that could change.
Other sports can deal with increases because of lucrative TV deals. But ABC
pays the NHL $600 million over 5 years.
"We don't come close," Florida Panthers President Bill Torrey said. "What are
we going to do? Have a $200 ticket?"
Torrey is troubled that the financial stability of NHL teams can be in the
hands of an arbitrator who might never have seen an NHL game.
"After the ($5.1 million) Bill Guerin award, I read where the arbitrator said
he was one of the top power forwards," Torrey said. "I wondered whether he
really knew what a power forward was."
Torrey wasn't done. "It would be like me going to the ballet and trying to
decide which of the ballerinas is worth $2 million and who is worth $5
million."
Torrey's frustration is symptomatic of the league-wide grousing about the
game's economic process. Not everyone shares his sentiment about arbitration,
but every team official is unhappy with one aspect or another of the game's
economics. The hockey world seems weary about worrying about the game's
future and whether the next collective-bargaining negotiation in 2004 is
going to be the all-out war that everyone expects.
"I think the players know they have to be prepared for a work stoppage,"
agent Jay Fee said. "I think players are all smartly preparing for that."
Management's beef is that the NHL doesn't have revenues to support an average
player salary that is approaching $1.5 million, and that there is a widening
gap between the payrolls of the top-spending teams such as the New York
Rangers, Detroit Red Wings and Dallas Stars and smaller-payroll teams such as
Pittsburgh, Carolina and Calgary.
"Why should the NHL Players Association believe any of this because they got
what they wanted this year in terms of salaries," former NHL coach and
general manager Jacques Demers said.
Demers believes the NHL is heading for a financial breakdown, but his point
is that players aren't going to believe that if some teams continue to spend
freely.
"With the exception of the Toronto Maple Leafs, all of the Canadian teams are
in danger," Demers said. "It's all of those who sign and OK those big
contracts who are to blame."
Burke says blame can be shared. "We as general managers have to take the
blame for some really poor decisons that we've all been guilty of. But when
you are talking $5-plus million, that's ownership. We can't sign checks like
that."
If the financial outlook is poor, why do teams spend? "They just want to win
so bad," Demers said. "You always think if I can just sign one, two or three
players."
Going into the summer, teams had Yanic Perreault slotted as a potential $2
million-a-year player, but he ended up averaging $2.8 million with Montreal.
He made $1.1 million last season.
"It was a natural market for his services," Fee said. " I never set a price.
We just sat back and listened to offers. Those decisions were made by teams
as the bidding escalated."
The irony of this summer's spending spree is that for the past two seasons,
the NHL has kept average salary growth between 5% and 6%. Revenues were ahead
of salary growth for the first time in several seasons.
>From management's perspective, not every contract was bad news this summer.
Amid much speculation that Joe Sakic or Rob Blake would break through the $10
million ceiling, both stayed with Colorado, and neither got $10 million.
The take was that if anyone was going to establish a new salary frontier, it
would be league MVP Sakic. There's hope that $10 million-a-year deals will be
the ceiling for premium players, but Jaromir Jagr will look for more if he
gets an extension from Washington.
Although the average salary is at almost $1.5 million, the median salary
(half make more, half less) might be in the $700,000-$800,000 range.
GMs also point out that most teams are trying to hold the line on salaries.
"There was a lot of money spent on Group III (unrestricted free agents),"
Buffalo's Darcy Regier said, "but that money was spent by a handful of teams.
I don't think the other 22 general managers feel like we can't compete."
He says the key to Buffalo's survival is simply to use whatever it has to
combat payroll increases, proven last year when it didn't give in on captain
Mike Peca's demands and he sat out the season.
"I think both sides are using the CBA as it was designed to be used," said
Murray, Guerin's agent. "Clearly, the good Group III free agents are
benefiting from being unrestricted. That's what the system was designed to
do. When people don't have specific leverages, such as arbitration or
unrestricted free agents, then the club does have the upper hand. Players
know that."
Frustration isn't confined to management. Outspoken player agent Rich Winter
has been lobbying for negotiations to begin today, rather than waiting until
everyone is armed for battle.
"I'm sick of people talking about Armageddon and the game will be destroyed
and no one doing a darn thing about it," Winter said. "The Players
Association is just telling us to save our money, and if the NHL is having
the economic difficulty that they say they are, why haven't we got a single
proposal out of Commissioner Gary Bettman?"
He says both sides should pressure Bettman and NHLPA executive director Bob
Goodenow to start a dialogue.
"If they can't sit down because they don't get along, then let's deal with
that first," Winter said.
Can the NHLPA and NHL get together? Winter seems pessimistic.
"The PA and NHL," he said, "have trouble deciding how to split up the revenue
if Mats Sundin's name is on a jersey along with a Maple Leafs logo."
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<HTML><FONT FACE=arial,helvetica><FONT COLOR="#0000a0" SIZE=3>Rising salaries worry NHL
<BR>By Kevin Allen, USA TODAY
<BR>
<BR>By Jack Dempsey, AP file
<BR>NHL MVP Joe Sakic was believed to be headed for a $10 million contract, but
<BR>it didn"t happen.
<BR>
<BR>
<BR> Related items
<BR>
<BR>
<BR>
<BR>While NHL salaries have climbed this summer, tension also has risen sharply
<BR>among those debating whether the league can afford a structure where the
<BR>average pay is about $1.5 million.
<BR>"We aren't as deep into the quicksand as baseball teams, but there is no
<BR>question the gap that didn't exist a few years ago is widening rapidly,"
<BR>Vancouver Canucks general manager Brian Burke said.
<BR>NHL payrolls are believed to be at 60%-70% of league revenue, a figure that
<BR>could rise with lucrative signings by a premier class of free agents this
<BR>summer.
<BR>"About 22 or 23 teams get it, and seven or eight don't," Burke said. "It's
<BR>only six teams spending out of control. Maybe some can afford it, but the
<BR>ones who can't are taking a business that already has serious problems and
<BR>making it worse."
<BR>When Marty Lapointe, whose career best was 28 goals, got a $5.5
<BR>million-a-season average from the Boston Bruins, it seemed as if rival
<BR>general managers began to beat war drums for the expected major confrontation
<BR>after the collective-bargaining agreement expires in 2004.
<BR>"This is just saber-rattling," agent Bob Murray said. "The people who own
<BR>these teams aren't stupid. They didn't get to the business position they are
<BR>in by being dumb. If they are willing to pay these salaries, there are
<BR>financial reasons why."
<BR> Top 10 salaries for 2001-02
<BR>
<BR><B>Player, team</B> <B>Salary</B>
<BR>Peter Forsberg, Col. $11,000,000
<BR>Jaromir Jagr, Wash. 10,007,165
<BR>Paul Kariya, Ana. 10,000,000
<BR>Pavel Bure, Fla. 10,000,000
<BR>Joe Sakic, Col. 9,892,727
<BR>Chris Pronger, StL 9,500,000
<BR>Teemu Selanne, S.J. 9,500,000
<BR>Rob Blake, Col. 9,285,194
<BR>John LeClair, Phi. 9,000,000
<BR>Brian Leetch, NYR 8,680,000
<BR>
<BR>
<BR>
<BR>Over the past two seasons, the NHL had turned the tide so revenues finally
<BR>were growing faster than salaries, but given this summer's increases and the
<BR>anticipation that Alexei Yashin will make $8 million-plus in his new deal
<BR>with the New York Islanders, that could change.
<BR>Other sports can deal with increases because of lucrative TV deals. But ABC
<BR>pays the NHL $600 million over 5 years.
<BR>"We don't come close," Florida Panthers President Bill Torrey said. "What are
<BR>we going to do? Have a $200 ticket?"
<BR>Torrey is troubled that the financial stability of NHL teams can be in the
<BR>hands of an arbitrator who might never have seen an NHL game.
<BR>"After the ($5.1 million) Bill Guerin award, I read where the arbitrator said
<BR>he was one of the top power forwards," Torrey said. "I wondered whether he
<BR>really knew what a power forward was."
<BR>Torrey wasn't done. "It would be like me going to the ballet and trying to
<BR>decide which of the ballerinas is worth $2 million and who is worth $5
<BR>million."
<BR>Torrey's frustration is symptomatic of the league-wide grousing about the
<BR>game's economic process. Not everyone shares his sentiment about arbitration,
<BR>but every team official is unhappy with one aspect or another of the game's
<BR>economics. The hockey world seems weary about worrying about the game's
<BR>future and whether the next collective-bargaining negotiation in 2004 is
<BR>going to be the all-out war that everyone expects.
<BR>"I think the players know they have to be prepared for a work stoppage,"
<BR>agent Jay Fee said. "I think players are all smartly preparing for that."
<BR>Management's beef is that the NHL doesn't have revenues to support an average
<BR>player salary that is approaching $1.5 million, and that there is a widening
<BR>gap between the payrolls of the top-spending teams such as the New York
<BR>Rangers, Detroit Red Wings and Dallas Stars and smaller-payroll teams such as
<BR>Pittsburgh, Carolina and Calgary.
<BR>"Why should the NHL Players Association believe any of this because they got
<BR>what they wanted this year in terms of salaries," former NHL coach and
<BR>general manager Jacques Demers said.
<BR>Demers believes the NHL is heading for a financial breakdown, but his point
<BR>is that players aren't going to believe that if some teams continue to spend
<BR>freely.
<BR>"With the exception of the Toronto Maple Leafs, all of the Canadian teams are
<BR>in danger," Demers said. "It's all of those who sign and OK those big
<BR>contracts who are to blame."
<BR>Burke says blame can be shared. "We as general managers have to take the
<BR>blame for some really poor decisons that we've all been guilty of. But when
<BR>you are talking $5-plus million, that's ownership. We can't sign checks like
<BR>that."
<BR>If the financial outlook is poor, why do teams spend? "They just want to win
<BR>so bad," Demers said. "You always think if I can just sign one, two or three
<BR>players."
<BR>Going into the summer, teams had Yanic Perreault slotted as a potential $2
<BR>million-a-year player, but he ended up averaging $2.8 million with Montreal.
<BR>He made $1.1 million last season.
<BR>"It was a natural market for his services," Fee said. " I never set a price.
<BR>We just sat back and listened to offers. Those decisions were made by teams
<BR>as the bidding escalated."
<BR>The irony of this summer's spending spree is that for the past two seasons,
<BR>the NHL has kept average salary growth between 5% and 6%. Revenues were ahead
<BR>of salary growth for the first time in several seasons.
<BR>From management's perspective, not every contract was bad news this summer.
<BR>Amid much speculation that Joe Sakic or Rob Blake would break through the $10
<BR>million ceiling, both stayed with Colorado, and neither got $10 million.
<BR>The take was that if anyone was going to establish a new salary frontier, it
<BR>would be league MVP Sakic. There's hope that $10 million-a-year deals will be
<BR>the ceiling for premium players, but Jaromir Jagr will look for more if he
<BR>gets an extension from Washington.
<BR>Although the average salary is at almost $1.5 million, the median salary
<BR>(half make more, half less) might be in the $700,000-$800,000 range.
<BR>GMs also point out that most teams are trying to hold the line on salaries.
<BR>"There was a lot of money spent on Group III (unrestricted free agents),"
<BR>Buffalo's Darcy Regier said, "but that money was spent by a handful of teams.
<BR>I don't think the other 22 general managers feel like we can't compete."
<BR>He says the key to Buffalo's survival is simply to use whatever it has to
<BR>combat payroll increases, proven last year when it didn't give in on captain
<BR>Mike Peca's demands and he sat out the season.
<BR>"I think both sides are using the CBA as it was designed to be used," said
<BR>Murray, Guerin's agent. "Clearly, the good Group III free agents are
<BR>benefiting from being unrestricted. That's what the system was designed to
<BR>do. When people don't have specific leverages, such as arbitration or
<BR>unrestricted free agents, then the club does have the upper hand. Players
<BR>know that."
<BR>Frustration isn't confined to management. Outspoken player agent Rich Winter
<BR>has been lobbying for negotiations to begin today, rather than waiting until
<BR>everyone is armed for battle.
<BR>"I'm sick of people talking about Armageddon and the game will be destroyed
<BR>and no one doing a darn thing about it," Winter said. "The Players
<BR>Association is just telling us to save our money, and if the NHL is having
<BR>the economic difficulty that they say they are, why haven't we got a single
<BR>proposal out of Commissioner Gary Bettman?"
<BR>He says both sides should pressure Bettman and NHLPA executive director Bob
<BR>Goodenow to start a dialogue.
<BR>"If they can't sit down because they don't get along, then let's deal with
<BR>that first," Winter said.
<BR>Can the NHLPA and NHL get together? Winter seems pessimistic.
<BR>"The PA and NHL," he said, "have trouble deciding how to split up the revenue
<BR>if Mats Sundin's name is on a jersey along with a Maple Leafs logo."
<BR>
<BR>
<BR>
<BR></FONT></HTML>
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