Jan Levine: Larry Brooks makes an out of the box suggestion to resolve revenue issue Option worth considering...

After reading Brooks' article this morning my first reaction was that this was a great idea. But the more I thought about it, I'm not really sure if the Owners see it that way.

I am thinking that all the Owners were counting on their entire cut from the Kraken Expansion money to help bail them out from all the money they have, and will be losing because of the virus.

Wouldn't be shocked if the Owners give a "hard no" to Brooks' idea.

Brooks' proposal is ludicous. Why would the 32nd NHL team float the other 31? If anything, the NHL should be fearful that the Krakken renege on their expansion fee, as future revenue is in serious danger.

Even though Seattle is being fronted by billionaires, Larry seems to think that these investors just have $300+ million sitting around to just give the NHL. I appreciate the creativity, but in the real world ( during a pandemic ) this is just unrealistic...

Brooks' proposal is ludicous. Why would the 32nd NHL team float the other 31? If anything, the NHL should be fearful that the Krakken renege on their expansion fee, as future revenue is in serious danger.

Even though Seattle is being fronted by billionaires, Larry seems to think that these investors just have $300+ million sitting around to just give the NHL. I appreciate the creativity, but in the real world ( during a pandemic ) this is just unrealistic...
- TommyGTrain

It's accelerating 1/2 the payment. They would be paying $650 in 2021, so the proposal is to move up half the payment a few months early. Clearly an out of the box solution, which might be declined by the owners and/or Seattle.

It's accelerating 1/2 the payment. They would be paying $650 in 2021, so the proposal is to move up half the payment a few months early. Clearly an out of the box solution, which might be declined by the owners and/or Seattle.
- airjan23

I get it Jan. Its just crazy that Larry thinks these guys can produce $325 million months early, its not like going to your piggy bank and smashing it with a hammer for a few bucks.

Out of the box is ask for $300m now & discount the $650m entry fee or pay interest

Out of the box is ask for $300m now & discount the $650m entry fee or pay interest
- Nighthawk

Exactly. You have to offer an incentive if they’re going to prepay $300M. Both sides need to receive a benefit in any negotiation

Franchise fees are not revenue shared income. It goes directly to the owners. So, it is asking each owner to cough up $20m from anticipated earnings. Nobody should think, for even a second, that any owner is going to cough up the money that comes from expansion.

Franchise fees are not revenue shared income. It goes directly to the owners. So, it is asking each owner to cough up $20m from anticipated earnings. Nobody should think, for even a second, that any owner is going to cough up the money that comes from expansion.
- spatso

Which shows the inequity with what is truly Hockey Related Revenue. In this case, the owners get the fee and the players are asked to pony up more of their salary.

I just can't wait to see Alexis Lafreniere playing in a Rangers jersey

just figure it out

Meh. The Expansion Fee is not Revenue.

When a business takes on a Partner who pays the existing Owner a Fee, it is called Owners Equity, not Revenue. The Business in this case is the NHL, and the new Partner is The Kraken. Let's not go down that path because it is just erroneous to think it is revenue.

Even if the Owners plotted in June/July to s reward the players and comeback to ask for more, they are somewhat justified in that Not One Person saw the extent to which the Pandemic's 3rd Wave has increased...it is exponential not linear...therefore the financial impact is far worse. I'm sure the projections used at that point included some level of Gate Receipts that clearly are not going to happen now. poop changed.

That said, the level of additional concessions which the Owners are asking for seems very high. I have to believe they will be negotiated down and center more around the Deferral increase rather than the Escrow increase...since, Players will recoup the Deferral amount over time, but would be subject to a full loss of Escrow if Revenues come in at 40% of 2018-2019 revenues.

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