1997 expansion approval
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12-27-2012, 01:35 PM
Join Date: Dec 2011
Originally Posted by
Here's an interesting thought... if you contracted a rich team like Toronto ($200 million/year revenue according to Forbes), the salary cap would drop by $200 million * 0.57 / 31 = $3.68 million per team. This move would push 3 teams that are currently losing money (Capitals, Sharks, Predators) into the black.
If you also contracted the Rangers & Canadiens ($368 million/year in revenue), the cap would drop another $368 million * 0.57 / 29 = $7.23 million per team. This would make the Wild, Ducks, Sabres, Hurricanes & Blues profitable.
So we've basically saved 8 franchises by eliminating the 3 richest franchises. That's kind of messed up when you think about it.
Forbes NHL valuations:
This happens when you have a cap that's based on total league economics that include the outliers. Those three teams account for something like 18% of league revenues.
I've been looking for trouble... but trouble hasn't been cooperating!
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