: Salary Cap:
Contracts and Salary Cap (Contract Info in Posts #1 & #2)
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11-27-2013, 11:25 AM
Join Date: Mar 2002
Location: New York
Originally Posted by
There's a better article in Sports Business Daily but I'm sure not many have a subscription to that.
The sporting news article believes the cap could increase $3 million based on the tv deal alone. So maybe it will increase a little more than expected.
The NHL will receive $350 million annually, to be divided up amongst the 30 teams. This was a huge deal for the NHL.
The TV deal wasn't a surprise. The new money comes into play for 15-16 cap. The NHL projected $1B increase in revenue in 3 years during the summer. The Rogers deal is worth $4.9B in US dollars. The cap is determined in US dollars. The first year is worth $300M. It escalates over the 12 years. Its $500M plus at the end. The NHL gets $150M as an upfront payment spread out over the first 2 years. $375M in the first year.
Rogers will pay the NHL $300 million in the first year and will gradually increase to approximately mid-$500 million in the final year. The deal also includes an upfront payment of $150 million spread over the first two years of the contract.
The NHL told teams the cap for 14-15 could be $67M. It could be $70M depending upon which teams advance in the playoffs.
The Canadian teams will get a greater % than the US teams.
Invasion fees are designed to compensate the Canadian teams for the local inventory lost to the national TV deals.
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