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Old 07-08-2011, 10:12 PM   #6
JoeRedskin
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Join Date: Mar 2004
Location: Second Star On The Right
Age: 62
Posts: 10,401
Re: ESPN: Teams that are helped/hurt by the new salary cap proposal

Quote:
Originally Posted by Giantone View Post
I apologize if I did that to anyone ,it was not my intent.
Let me try it another way ......all of you are 1000% right ...just answer me this how much revenue do the teams generate if the players don't play...just a simple question ?
For all intents and purposes - 0. Nada. Zilch. We are all in 1000% agreement with you on this point. No players = no revenue. No one. Absolutely not a soul is disagreeing with you on this point.

Quote:
Originally Posted by Giantone View Post
Quote:
Originally Posted by JoeRedskin View Post
And I guess I am just not sure what Giantone's take on that is. Is he saying:

(1) "Sure pay based on profit because player generated revenues are just part of the equation that leads to profit." or

(2) "B/c the owners wouldn't have any profit w/out the player generated revenue, the players should be paid based on the revenue they generate".
Not trying to be a smart ass but why can't it be both?
<sigh> All right, one last time, but this is my last shot at it G1 - if you get it, great. If not, c'est le vie:

The Basic Equation: [Revenue Generated By Players] - [Owners' Expenses] = [Owners' Profit/Loss].

Although the players salaries are an expense, the size of that expense will be determined based on the percentage of some number under the new CBA. The question is - What number should be used to define the Players' Percentage?

(1) Should the Players' Percentage be determined based on the Revenue Generated By Players before owners deduct their Non-Player Expenses? OR

(2) Should the Players' Percentage be determined based on the Revenue Generated By Players after owners deduct their Non-Player Expenses?

Using theory (1) the final equation looks like this: [Revenue Generated By Players] - [Players' Salaries (Percentage of Revenue)] - [Owners' Non-Player Expenses] = [Owner's Profit/Loss].

Using theory (2) the final equation looks like this: [Revenue Generated By Players] - [Owners' Non-Player Expenses] = [Owners' Preliminary Profit/Loss] - [Players' Salaries (Percentage of Preliminary Profit/Loss)] = [Owner's Final Profit/Loss].


and .... Ruhskins, I am sorry for once again boring the crap out of you.
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