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08-28-2012, 07:23 PM
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Originally Posted by vcv View Post
AFAIK, the floor is fixed at $16M below the ceiling, so that would mean its REVENUE * 0.57 / 30 + 8,000,000.

2011-2012 season: 2,900,000,000 * 0.57 = 1,653,000,000 / 30 = 55,100,000 + 8,000,000 = 63,100,000
The formula is currently:
Preliminary HRR for the prior League Year multiplied by [x] the Applicable Percentage (as defined in Section 50.4(b) of this Agreement), minus [-] Preliminary Benefits, divided [/] by the number of Clubs then playing in the NHL (e.g., 30), shall equal [=] the Midpoint of the Payroll Range, which shall be adjusted upward by a factor of five (5) percent in each League Year (yielding the Adjusted Midpoint) until League-wide Actual HRR equals or exceeds $2.1 billion, at which point the five (5) percent growth factor shall continue unless or until either party to this Agreement proposes a different growth factor based on actual revenue experience and/or projections, in which case the parties shall discuss and agree upon a new factor.
So, basically:
(((Preliminary HRR * Player's Share) - Preliminary Benefits) / 30) * 105% = midpoint
Ceiling = midpoint + $8m
Floor = midpoint - $8m

So, 2011-12 would look like this:
((($2,980,000,000 * 57%) - $90,000,000) / 30) * 105% = $56,301,000 + $8,000,000 = $64,301,000 (a bit off, but the ceiling was $64.3m last year).

Originally Posted by Beechsack View Post
The players also had an option on a 5% escalator to increase the cap, which I think was a one time deal under the current CBA. They exercised that option for 12-13.
As stated in the excerpt above, the escalator has existed every year in which revenues were ≥$2.1b.
It was kept at 5% every time after that and the PA simply had to okay it.
They've done so every year, I believe.

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