Operating in the Era of a Falling Salary Cap
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06-22-2009, 03:53 PM
Join Date: Jun 2003
Location: Gardnerville, NV
Originally Posted by
I know you have read it in detail. If you can provide some examples of the impact of the 5% inflator, I would appeciate it.
Say the cap falls to $54M this season, and then again to $50M in 2010-2011. What does the 5% inflator do, and how often can it be implemented by the NHLPA?
When the NHL reports the revenue for the year the NHLPA has an option to implement the 5% inflator.....the league then would add 5% of the revenue to the total before calculating the cap. As an example this past season's cap would have been only $54 million as opposed to $56.7 million if the NHLPA decided to not implement the 5% inflator.
Here is an article that discusses it a bit.
The advantage of the 5% inflator is it keeps the cap number high...in order to have more money for free agents....but this would also increase the amount of money that players pay into the escrow account....so basically implementing the 5% inflator benefits players looking for a new contract at the expense of players on existing contracts....not implementing the 5% inflator would have the reverse effect.
Oh and in case it was not mentioned the NHLPA decude whether or not to implement the inflator every year.
Last edited by Captain Ron: 06-22-2009 at
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