Thread: Setting the cap
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12-17-2005, 12:06 PM
Join Date: Mar 2005
Location: Hamilton, Ontario
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Originally Posted by Peter10
The question that still stands for me is, is there a way to calculate the cap for certain revenues? I mean we all know how to figure out how much money is going to the players with certain amounts of revenues. We can calculate whats the average any team can spend to hit the percentage of revenue for the players. What we cant, is to say with a revenue of $2.2B the cap will be set at $X
Yes. The way is to apply the formula.

THe percentage varies slightly according to revenue. 53% at the current level, which goes up to 54 and 55 at certain levels (see the NHL CBA FAQ).

Multiply the revenue by the players' percentage.

Deduct from that figure the players' benefits of about $66 million.

Divide that figure by 30 to find the average payroll per team.

Add $8 million. That is the cap.

Deduct $8 million. That is the floor.

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