Brad Richards News Part II
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05-10-2011, 08:36 PM
Join Date: Sep 2007
Originally Posted by
Drury and Gomez were signed one year prior to the one of the biggest recessions in U.S. history. Even worse, Redden was signed literally a few months before the market tanked. Had the cap kept increasing like it had been prior to the crash, those contracts would be much easier to swallow today.
The 2005-2006 NHL salary cap was $39m. Three years later, when Redden was signed and right before the economy tanked, the cap had already risen to $56.7m! If the salary cap had continued going up at that rate (~6m per year), the Gomez, Drury, and Redden contracts would be much easier to swallow today (we'd be looking at about $70m in cap space for next season).
One can claim that Sather should've foreseen economic trouble prior to handing out those big time contracts, but let's not ignore the many more qualified, professional economists who also dropped the ball.
Even if the economy hadn't tanked, there was NO way the cap was going to continue to increase at that same percentage every year. Everyone knew that after the lockout the cap would rise. The strong Canadian dollar helped during the recession as well as the 6 Canadian teams account for a pretty significant portion of the leagues revenue.
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