Weber on the verge of signing 2-year deal
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06-18-2011, 11:28 AM
Join Date: Jun 2007
Location: Hockey Mecca
Originally Posted by
I wouldn't bet on that. It's not assured to happen. There is still a lot of question marks regarding the global economy and hockey being a sport (thus entertainment) is one of the first things people will put on the chopping block of expenses if things get tough. I'm not saying it's going to happen, odds are it probably won't, but you can't just assume it's going to keep going up and especially by the amount it's going up this season.
Yeah, I've been debunking this type of myth for awhile now. There's no cap going down ever, unless stipulated by a new CBA which will have adaptation rules (global -%).
For the cap to go up each year, they only need a 5% increase in revenue (or close to that). Since the new CBA, there has been a constant rise in attendance and revenue. Even in the face of financial crisis, the league didn't score any losses.
The cap IS going up in the foreseeable future, as for now there is no lowering of the CND in sight, and the move of financially stricken markets to better markets (Atlanta-Phoenix) will only increase the % of increasing revenue, which might even be hard to keep up with, with only a yearly 5% increase of the cap. What we should expect is the cap rising a steady yearly 5% for at least another 5 season, or more.
The argument about entertainment being the first victim of economic crisis, is something that happened in the 20s and 30s, and somewhat in the 80s. The entertainment industry wasn't that much affected by the economic crisis of 2008. It's been more affected by technological factors, like the internet, and torrent sharing, than anything else in the last decade.
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