Sigwolf wrote:Go in and tell your boss you are only going to work 30 hours a week instead of 40, but want the same pay. How well will that work out? If these prima donnas want to die on that sword, cancel the season and pay them nothing.
The thing is, these players already agreed to two different types of paycuts for the upcoming season, and the owners want more. So, in the scenario as it is, it isn't me telling my boss I am going to only work 30 hours but still get paid for 40 hours, it's more equivalent to your boss telling you you are getting a 50% cut in pay but still need to work 40 hours a week. I don't think that will fly for more people in any job. I've worked for the same company for over 20 years, large company with over 10K in employees at times, and in those 20+ years, I've been through 4-6 rounds of layoffs. I've been lucky enough to survive them all, but, when sitting there wondering if I would have a job tomorrow, thoughts of "I'd gladly take a 5%, maybe even 10% paycut" if it meant we didn't have to have any layoffs. The job market isn't easy, and I know full well that if I left my current job, there is ZERO chance of finding a comparable paying job in my current location. But, at 30, 40, or 50% reduction in pay, you've reached a level of the effort I need to put in for the amount of pay I am getting is no longer worth it, and I know that there are other opportunities out there where I can make more than what I would get with a 30-50% pay reduction
Not going to change some of your minds on this, but, my understanding is the players already agreed to large salary cuts over the summer (applying to this season), and that is the contention:
--From what I have heard, over the summer, players agreed that for this upcoming season, they would take a 20% paycut off the top. Meaning, a 1M player is now an 800K player in 2021 season. Players do not get that money back, and, that paycut was based on the intent of having an 82 game schedule in 2021.
--In addition to the 20% paycut, players also agreed to have 13% of their salaries deferred. I believe the deferment schedule had the owners paying out those deferred payments over 3 years.
So, this is what was agreed to in the summer, before the playoffs, to prepare for a possible 2021 season. Now the owners see that they almost definitely cannot play a full 82 games, they are asking the players to take an additional paycut. My understanding is that players are not willing to lose additional revenue than what they already agreed to (20%), but would likely be willing to accept
--The players already agreed to a 20% paycut over the summer. If you go by number of games, a 65 game season would be a 20% reduction in games played....which is what the owners are already getting from the players according to their summer agreement. There is talk right now of somewhere between 48-68 games next season.
--If we look at the low end, 48 games, that is essentially a 40% reduction in games played. So do you ask the players to take another 20% paycut? Maybe that seems fair....until you then factor in that if the players take a 40% paycut, they've ALSO agreed to have another 13% deferred over 3 years. I can easily see why there needs to be some give and take right now.
If they went to a 48 game schedule, I think the fairest would be for the players to take another 10% paycut, and the owners to put another 10% in deferred payments. 48 game schedule, 30% paycut, 23% of salaries deferred over 3 years. If you were around 60 games, which is a little over 70% of the season, make the players take another 5% paycut and the owners put another 5% into deferral. There must be some give and take from both sides.
To illustrate some of these points using salary, here's a look at a league minimum 700K player, versus a 5M AAV player. For discussion purposes, I am assuming 30% tax rate and 10% agent/account rate.
In a normal NHL season, your 700K player loses 210K to taxes, and 70K to agent/accountant. Take home pay in this scenario is 420K.
--in the summer agreed upon scenario, that 700K player loses 140K to the agreed upon paycut, 168K to taxes, 56K to agent/accountant. His immediate take home pay is 263.2K, and he has to wait 3 years to recover 72.8K of his salary via deferral for a final take home pay of 336K
--in a 48 game season, if there was no extra deferral and all additional salary cut (40% total paycut)
------> 700K player loses 280K off the top topay cut, 126K to taxes, 42K to agent/accountant. Immediate take home pay is 197.4K, and he has to wait 3 years to recover 54.6K for a final take home pay of 252K.
For the 5M AAV player, in a normal season, they lose 1.5M to taxes and 500K to agent/accountant. Take home pay is 3M in this scenario.
--in the summer agreed upon scenario, the 5M player loses 1M to the agreed paycut, 1.2M to taxes, and 400K to agent/accountant. His immediate take home pay 1.88M is and he has to wait 3 years to recover 520K for a final take home pay of 2.4M
--in a 48 game season, if there was no extra deferral and all additional salary cut (40% total paycut)
------> 5M player loses 2M off the top to the agreed paycut, 900K to taxes, and 300K to agent/accountant. His immediate take home pay 1.41M is and he has to wait 3 years to recover 390K for a final take home pay of 1.8M total.