Thread: Salary Cap: Increase in Cap?
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11-04-2010, 07:37 AM
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Originally Posted by RangerBoy View Post
The cap has increased thanks to the Canadian dollar which is still strong at 99 cents and 1/3 or 1/4 of the NHL revenues comes from the Canadian teams. That's the #1 reason why the cap increased last season when it was expected to go down. The players exercise their 5% escalator. Then escrow makes up the difference when the players receive more than their negotiated share.

How much longer is this situation going to last? Escrow is going to be a main topic for the PA. Kovalchuk's contract calls for the first two years to have $6 million in salary per year due to escrow. Then the salaries escalate into the $11 million range in the new CBA when Jay Grossman expects escrow to be less when the cap is less.
For how long can China keep the dollar at such a high level?

The dollar is bound to drop even more.

Last season was in the midst of the worst financial crash in since 1929.

I've asked you before (and maybe I've missed the response?). But -- do you really see situation were 1. the NHLPA and the NHL agrees to cut the escrow by rolling back the cap around 10-20 %, without 2. rolling back the existing contracts with the same amount?

If they cut back the cap and don't roll back the existing contracts -- you get a insane situation. The RFA's/UFA's that year will get screwed tremendously. Like imagine if we last season got 11,4m less to resign our players with??? All teams got 20% less? It would be a circus, nothing else.

The NHLPA have been in this situation before, and the only reasonable thing to do is to rollback the existing contracts. The NHL don't care.

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