How will NHL labor deal affect NsHL?

[coloradogm]

Now that the NHL has a new labor deal in place and a salary cap, how will this affect the NsHL?

Does the BOD have a plan in place and if so maybe you guys should be running the real thing,LOL

[Anaheim GM]

All things being considered, we functioned rather well this season and had NO problems negotiating a new contract between the players and the owners. (Our players aren't complaining, and quite frankly, neither are our owners)

If the financial climate of the NsHL changes, then perhaps changing the fiscal system would be an appropriate step to take. For example, if salaries get out of control and the team's balance sheets begin to glow bright red, then perhaps we can look at a salary cap. However, at this time, 99% of the GMs in the NsHL exercise good fiscal sense, and have a pretty good grasp on the importance of remaining economically viable.

There are teams that are in better financial shape than some of the other franchises, that is apparent. However, these teams that have limited resources simply have to exercise tighter fiscal responsibilities.

If it ain't broke, don't fix it, right Rob?

Of course, I do not speak for the entire BOD and the Commissioner(s).

[coloradogm]

Definately ain't broke, I think we do a better job than the "real" guys do, LOL! I was just hoping for a 25% rollback of all player salaries and smaller contracts for the players if possible so we don't get "out of control"

[formerBostonGM]

Wait, Mark. Who is the other 1%?

[Anaheim GM]

24% rollback, HAHA!!! NEEEEEEEEEEEVER!!!!

Unfortunately for our clients the salary climate is already softening to meet the demand. Most teams aren't after the $10 million player anymore, it just doesn't reap the rewards in comparison to what you can get for a lot less than half the price. That is a direct result from 1)cash reserves declining amongst certain teams 2)having highly intelligent, conservative, and cost-conscience GMs at the helm. (Time to pat yourselves on the back).

Salaries are coming into line nicely in comparison to realistic revenue amounts, I think. I suspected at the creation of the league that the financial climate would drive salaries to levels that would flatline, even decrease profits. I surmised that contracts would be high initially and would plateau, even decrease after year 4 or 5. The only glitch are those teams who have been able to stock pile millions of dollars, lay in the weeds, or even make it a round or two in the playoffs. With rather large cash reserves, these teams could be in a position to inflate salaries somewhat artificially.

However, franchises with large reserves who overpay for their players will eventually contribute to the cycle of teams limited in their financial resources. With these teams running out of cash to burn, new teams, in theory, would emerge as players in the open markets with stockpiled cash. Hence, the business cycle continues....it is capitalism at its best!

So, for now, there is no rollback. However, I am all in favor of a mandatory 25% increase in ALL players salaries to combat teams that have too much money laying around in reserves. Our players deserve more!!!

[Anaheim GM]

coloradogm said:

Definately ain't broke, I think we do a better job than the "real" guys do, LOL!

I was thinking about that as I read your post. I think you are right!

[Anaheim GM]

bostongm said:

Wait, Mark. Who is the other 1%?

The two owners from Detroit are spendthrifts.



I won't mention any names (whistling).

Seriously, most of the fiscally irresponsibile GMs have found their way to the refuse bin, actually. I can't name one at the moment. If a team has been financially strapped they have done (or are doing) what it takes to remain solvent. The BOD keeps a close eye on such things, too. For the most part we just haven't had to...and it is because we are lucky to have serious FHLers who treat there team like IT IS THEIR OWN.

This league is proof positive that money is NOT the best form of motivation to promote success, people. I think pride comes in first amongst this group.

[NashvilleGM]

speaking of money .. did a report come out and I just miss it?

Richard
NSH

[LAKingsGM]

Yes,


I sent a historical financial cash report about a month ago showing the financial climate of the NsHL. All in all, we have just over $1,000,000 more dollars collectively (all 30 teams) now then we had at the start of the league. Although that is not a lot of money, it is a safe indicator that salaries are not out of whack. Actually, that statistic would lead one to believe that the salary structure of our league is rather realistic and very close to accurate.

I can email that database again to show cash reports for the last 3 years. It is interesting to see who has the cash and who doesn't. That report will dictate the credit ratings of your team, as a matter of fact. That will be published before the UFA period begins. Basically, the more cash you have, the better.

Nathan Kopsack
NsHL Commissioner

[NashvilleGM]

Cool .. I am sure I saw the e-mail .. I must just be getting old.

Richard
NSH