Lockout Discussion Thread 4.0
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12-11-2012, 10:31 PM
Join Date: May 2011
Location: Canberra, Australia
Right now, a 57% cap is enough to support a 30-team league. 17 of 30 teams are profitable (median of 3 million per year) and 26 of 30 teams have increasing franchise valuations (median 13 million per year). Those are fantastic odds that would be attractive to any investor.
Once the player share drops to 50%, the NHL will become an even more attractive business. I wonder if an aggressive round of expansion will be announced.
If a 30-team league can work at 57%, why not a 36-team league at 50?%? With a lower salary cap, we could see expansion into Houston, Seattle, Hartford, Southern Ontario, Quebec City, and Cleveland, as examples.
Existing owners would benefit from collecting over a billion dollars in expansion fees, and from the fact that the salary cap would immediately drop drastically if there was aggressive expansion into weaker markets.
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