View Single Post
Old
08-31-2009, 09:57 PM
  #131
Ernie
Registered User
 
Ernie's Avatar
 
Join Date: Aug 2004
Posts: 10,859
vCash: 500
Quote:
Originally Posted by guyincognito View Post
I don't think they negotiated the cap level up that much at all. wasn't the difference between the offer made public before 9/15 and the final offer $4M? the biggest mistake was the placement of the floor. it was set too close/high to the cap, and when the cap exploded, the floor exploded too.

in 03/04, 15 teams spent under the current floor, 1 basically spent even to it.

teams that would probably maintain a $25-30M payroll are essentially forced to take losses by the floor. but the floor is also necessary to make linkage work. they're going to have to find a way in the next negotiation to lower the floor and find another way to give money to the players (maybe something in the form of a mid-level exemption, or a change to the definition of HRR)
Well, the main point of the cap was supposed to be that all teams could field competitive rosters and still turn a buck. Since players are guaranteed a percentage of league revenues, where the floor and ceiling stand aren't really THAT much of a concern. If either is too low, the players just make that difference up at the end of the year.

Where the cap and floor IS important is keeping all the teams competitive and thereby growing revenues in small markets. If the floor drops and the Coyotes only have a $15m payroll, chances are they'll end up in the basement of the standings. They won't sell season tickets and won't win over fans to the game, and won't deliver much in the way of revenues to be ultimately split with the players.

Of course, big revenue teams don't care much about that as long as their guaranteed profits remain in place.

If the league's goal is stability and growing revenues across the board, then they need to increase the cap floor and allow teams the ability to get there with increased revenue sharing.

As in all competitive systems, when there is a big difference between the strong and the weak, the strong tend to get stronger, and the weak tend to get weaker. The further the divide grows the more it accelerates.

In the league's situation, it's better for everyone to have franchises reaching into as many markets as possible. Bettman, to his credit, gets this. However, what he hasn't been able to do is maintain a base level of financial support to make this vision viable.

Ernie is offline   Reply With Quote