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Star gazing under the NHLPA plan

Friday, December 10, 2004

When the NHLPA released its latest proposal Thursday, it provided "case studies" on how its plan would affect each of the league's 30 teams. Here's what the union had to say about the Dallas Stars.

The NHLPA said its 24 percent salary rollback, which would apply to players who were on NHL rosters for at least 90 days in 2003-04, would have saved the Stars $12.8 million in payroll costs had the 2004-05 season been played in its entirety.

Eighteen players under contract to the Stars would be affected by the rollback. Here's an individual breakdown according to the NHLPA proposal.

Player 2004-05 Compensation 24% Savings Adjusted Compensation
Mike Modano $9,000,000 $2,160,000 $6,840,000
Bill Guerin $8,866,445 $2,127,947 $6,738,498
Pierre Turgeon $7,000,000 $1,680,000 $5,320,000
Sergei Zubov $6,000,000 $1,440,000 $4,560,000
Marty Turco $4,154,092 $996,982 $3,157,110
Jason Arnott $3,850,000 $924,000 $2,926,000
Jere Lehtinen $3,650,000 $876,000 $2,774,000
Philippe Boucher $2,100,000 $504,000 $1,596,000
Stu Barnes $2,000,000 $480,000 $1,520,000
Brenden Morrow $1,600,000 $384,000 $1,216,000
Jon Klemm $1,472,249 $353,340 $1,118,909
John Erskine $726,000 $174,240 $551,760
Steve Ott $697,320 $167,357 $529,963
Rob DiMaio $550,000 $132,000 $418,000
Don Sweeney $550,000 $132,000 $418,000
Niko Kapanen $500,000 $120,000 $380,000
Jaroslav Svoboda $500,000 $120,000 $380,000
Aaron Downey $425,000 $102,000 $323,000
Totals $53,641,106 $12,873,866 $40,767,241

The NHLPA figures do not take in to account, nor does the proposal mention, players such as Trevor Daley and Antti Miettinen, who would made $750,000 and $700,000 at the NHL level in 2004-05 respectively. There is also a backup goalie (either Dan Ellis or Mike Smith) and probably a few other players.

Overall, the Stars would probably stay under the $45 million luxury tax threshold according to the NHLPA's estimates on comparable teams.

Revenue sharing

Although the NHLPA proposal doesn't go into a lot of details about the formula, there would be revenue sharing among the teams that would fall outside any redistribution that comes from the luxury tax system.

Under the union plan there would be about $65 million distributed from high revenue teams to low revenue teams. These figures were based on 2003-04 revenues, which were not revealed in the proposal.

The Stars would be the second biggest net losers in revenue sharing, giving up $9.9 million according to the NHLPA proposal. Only Toronto ($10.9 million) would give up more in revenue sharing.

Qualifying offers

Under the previous system qualifying offers for restricted free agents were handled one of two ways. If the player made less than the average league salary he was qualified at 110 percent of his previous season's salary. If he made more than the average league salary he was qualified at 100 percent.

Under the NHLPA's proposal that would be altered. Players making less than $660,000 would be qualified at 110 percent. Players making between $660,000 and $1 million would be qualified at 105 percent. Players making more than a $1 million would be qualified at 100 percent.

Under this proposal this proposal the NHLPA says the Stars would save just under $2.1 million in qualifying offers in the summer of 2005. The Stars would have six restricted free agents based on their current roster. Here's how the NHLPA breaks it down factoring in the adjusted compensation based on the 24 percent salary rollback.

Player 2004-05 Compensation Old Qualifying Offer Adjusted Compensation New Qualifying Offer Savings
Jason Arnott $3,850,000 $3,850,000 $2,926,000 $2,926,000 $924,000
Brenden Morrow $1,600,000 $1,760,000 $1,216,000 $1,216,000 $544,000
John Erskine $726,000 $798,600 $551,760 $606,936 $191,664
Steve Ott $697,320 $767,052 $529,963 $582,960 $184,902
Niko Kapanen $500,000 $550,000 $380,000 $418,000 $132,000
Aaron Downey $425,000 $467,500 $323,000 $355,300 $112,200
Totals $7,798,320 $8,193,152 $5,926,723 $6,105,196 $2,087,956

A majority of the savings here is due to rollback and not the change in the qualifying offer changes. Brenden Morrow would be the only player would see his qualifying offer change as far as percent. Under the old system his QA would have come at 110 percent, but under this proposal it now comes in at 100 percent.

Looking ahead

The NHLPA proposal said the Stars would save another $7.1 million in player salaries in 2005-06 due to the rollback. Here's the individual player background. Again, this is for players who spent at least 90 days on the roster in 2003-04.

Player 2005-06 Compensation 24% Savings Adjusted Compensation
Bill Guerin $8,866,445 $2,127,947 $6,738,498
Pierre Turgeon $6,000,000 $1,440,000 $4,560,000
Jere Lehtinen $4,700,000 $1,128,000 $3,572,000
Marty Turco $4,160,256 $998,461 $3,161,795
Philippe Boucher $2,400,000 $576,000 $1,824,000
Stu Barnes $1,500,000 $360,000 $1,140,000
Jon Klemm $1,472,249 $353,340 $1,118,909
Jaroslav Svoboda $600,000 $144,000 $456,000
Totals $29,698,950 $7,127,748 $22,571,202

In 2006-07, the union says the Stars would have $3.6 million due to the rollback. Four players currently under contract with the Stars would be affected by the 24 percent rollback.


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