Thread: Speculation: Should the habs buy anyone out?
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06-19-2011, 12:33 PM
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Originally Posted by Ozymandias View Post
That will never happen IMO. Rich teams have too much weight at the board of governors, and higher revenue sharing/cap floor lowering will probably not be what the players ask for the most. Also, there is the logic of the cap itself to consider. The halfway margin (between floor and ceiling) of the cap represents the 57% of revenues that players are supposed to get. If you bring the floor down, this brings down the halfway margin, which brings down the players percentage (57%). When you bring down the floor, you have to take the ceiling up to compensate for the halfway margin. If owners ever agree to a lower floor, it will be to get a higher ceiling. There's no other way for it to work in the present cap system.

Habs will continue to spend on a high cap ceiling, I don't see any problems concerning that, unless they want to nix the system to instore a new one.
Thanks Ozy I meant to write that you bring down the ceiling as well but you're right in the players wanting to maintain their 57% of revenue and that any cap movements wouldn't work in the way that I laid out.

Given what's going on in the NFL and NBA with the owners wanting to have a lower percentage of revenue go to the players (I think i've read 50%) it wouldn't surprise me if the NHL pushes for a lower % again. Even though in general sports is a terrible way to make earn a return on your investment (except for the appreciation of your capital investment) I think all the owners wouldn't mind a lower percentage - it's been very good for teams like Toronto and the Rangers.

I've kind of got us down the CBA rabbit hole, but I think that the NHL has a revenue distribution problem rather than a revenue or cost problem. The simplest solution in terms of bargaining with the players would be to just increase revenue sharing but the rich owners won't go for that. I expect that they'll try to bargain for a lower percentage of revenue going to the players.

Frankly though, the owners and their management teams will find some way to screw things up. They had almost a blank slate with the NHLPA last season and still managed to have their "cost certainty" grow out of the reach of a fair number of teams.

If there are compliance buy-outs it means the players will be receiving a lower percentage of league revenues (and thus the cap goes down), which isn't necessarily a good thing for the Habs from a competitive advantage standpoint.

Thanks again Ozy.

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