You didn't do much to justify flushing 25% of ticket revenues down the toilet. I like the idea of the tournament, but it makes no sense from the owners' perspective to lose 330 regular season games per season. Since the players' salaries are tied to HRR, they wouldn't want that either. Travel savings would recoup a negligible amount compared to what's lost, not only in ticket sales but also TV revenue which for many markets, is pretty big. Regionalizing the schedule is a separate issue so any savings on that front have nothing to do with a shortened season.
I think a more reasonable option to reimburse the players for the additional games they'd have to play would be to give them a cut of the ticket revenue from those games. Makes a lot more sense to give up partial revenue to a handful of games than 100% of revenue from 25% of games. I think it's all moot because these two groups can't even agree on the basic stuff, so throwing this wrench into it would screw things up even more.