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09-27-2004, 01:17 PM
Join Date: Jun 2002
Location: http://nhl.degroat.n
Posts: 8,108
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Proposal: Soft cap + Luxury Tax + Revenue Sharing

NOTE: This is a similar proposal to what I mentioned in GoCoyote's thread, but it is quite different...

Part 1: Soft Cap set at 55% of Revenue

Using $2B in revenue (which is obviously an estimate), the cap would be $36,666,667.

The exemption to the cap would be that a player's cap hit decreases as his tenure with a team increases.

1st & 2nd year - 100% cap hit
3rd year - 98%
4th year - 95%
5th year - 90%
6th year - 85%
7th year - 80%
8+ years - 75%

A player’s first year with an organization would be determined by the first regular season game played by the organization after said player becomes part of the organization.

So, for players drafted by the team, his first year with the organization would be the year following his draft.

Part 2: 100% Luxury Tax set at 65% of Revenue

Using $2B in revenue, the threshold would be $43,333,333. Full player salaries are used for this, not the cap hits that were listed in Part 1.

What this means is that even though the soft cap allows them to go over the cap, they will have to pay luxury tax for having player salaries over the threshold.

Teams must match, dollar for dollar, any money paid to players over the threshold and that money goes into the "Sharing Pool".

Part 3: Revenue Sharing
The following items will be paid into the "Sharing Pool"

50% of local TV revenue
25% of gate revenue

The sharing pool will then be divided evenly among all 30 teams, even those that paid a luxury tax.

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