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Originally Posted by Big Cat Davo
The biggest reason that I see the home grown talent having merrit is that it does not penalize teams for developing and using a good minor league and scouting system. It could of course be a little more liberal, like if the player has played less then 100 games for another franchise then he qualifies for the home grown player thing . . . what this could do is allow for team like the Edmonton Oilers or the Vancouver Canucks to retain their high end talent without penalty . . . When the Rangers go and sign Bobby Holik to a 9 mill a year contract pushing them well over the cap, the teams that are in the cap get a portion of the Cap penalty. This re-alocated wealth allows the Pengiuns, Preds, Habs, and Oilers to sign the Mike Comrie's and David Legwands without encrouching on the cap.
Dave
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Charging a 'cap penalty' is simply a luxury tax... which I have been very vocal against because I feel it gives the Rangers more power.
Let's assume we have a $40M limit in place and any $ above that would be taxed 100%. We'll also assume the Wings can be profitable with a $60M payroll while the Rangers can be profitable with a $80M payroll.
With that luxury tax system, the Rangers can still have a $60M payroll and the Wings could only afford a $50M payroll. Many other teams wouldn't even consider going over it because it's not worth it. The point is that it simply gives the richer teams more power because they are the only ones that can afford to go over the cap.