Revenue sharing, officially dubbed by the NHL and NHLPA as the "Player Compensation Cost Redistribution System," is a complicated system, but not one whose basic idea is beyond grasp. The idea is take money from higher earning clubs and the league and distribute it to lower earning clubs in an effort to spur economic development in the lower earning clubs. Under the 2005 CBA, the first to contain a revenue sharing regime for the NHL, rigid rules were established in terms of qualifications and amounts transferred from the league and higher earning clubs.
As a result of the hard-line formulaic approach, some teams that did not meet qualification standards (such as the New York Islanders and Dallas Stars) were left with no money, while others were left underfunded. This further led to arguments during the most recent lockout over the allocation of money not only between clubs themselves, but it bled into the larger issue of the division of hockey-related revenue between players and owners.
The 2013 CBA brings with it a proposed solution to the harsh dictates of the 2005 revenue sharing system: the Revenue Sharing Oversight Committee (RSOC). The Revenue Sharing Oversight Committee now takes a deeper look at each club's financial requirements and their diligence in growing their own revenue vis-a-vis the previous regime. By setting up built-in flexibility in the 2013 CBA, the NHL and NHLPA are giving themselves a better chance to succeed.
2013 CBA's Revenue Sharing Oversight Committee Provides Needed Flexibility
Die By The Blade | Jan 22