NHLPA fires Paul Kelly (UPD: player review of firing completed)
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08-31-2009, 10:13 PM
Join Date: Mar 2007
Originally Posted by
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.
I don't mean a drastic drop in the floor, but I think a $5M downtick would be helpful.
If a team is losing roughly $5M or less and were given an opportunity to spend $5M
less, in theory they could break even... it wouldn't effect performance that much because in alot of these instances, the teams spend money because they have to spend money... that doesn't lead to the best acquisitions.
the problem is, say if 10 teams take up this option, that's a $50M shortfall... how do you make it up?
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