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The Business of Hockey Discuss the financial and business aspects of the NHL. Topics may include the CBA, work stoppages, broadcast contracts, franchise sales, NHL revenues, relocation and expansion.

How much can the salary cap grow?

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07-10-2017, 10:53 AM
  #51
Jets4Life
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If anything, it should have been capped at $70 million. It's badly outperformed inflation, and the fact that the Canadian Dollar has dropped to 0.75 US is a recipe for disaster, and when the CBA is up, another half season will be lost.

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07-10-2017, 11:12 AM
  #52
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I don't really get why they need to drag the CBA stuff for so long that it causes lockouts. Why not just have the deadline to get a new deal done early enough? I'm sure that'd save everyone a lot of money.

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07-10-2017, 03:51 PM
  #53
Fugu
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Quote:
Originally Posted by Noldo View Post
Do you believe that the League and the NHLPA could change the cap formula (for example from midpoint to two thirds) in an attempt to limit the escrow or would such a change be (i) too technical, (ii) affect the current UFA class too much, and (iii) affect the big market teams proportionally more and thus never be accepted?

The NHL and PA could agree to change it, but yes, it's usually a fairly drawn out process and each side something it really wants from the other, so they seem okay with waiting until the CBA expires.

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07-10-2017, 04:13 PM
  #54
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Quote:
Originally Posted by Noldo View Post
Do you believe that the League and the NHLPA could change the cap formula (for example from midpoint to two thirds) in an attempt to limit the escrow or would such a change be (i) too technical, (ii) affect the current UFA class too much, and (iii) affect the big market teams proportionally more and thus never be accepted?
I don't think it would be too hard to do... it would just be a matter of everyone being willing to do it. High spending teams (aka cap teams - most of whom also have high revenues) are not going to want to lower the cap. And then as you mentioned, the main reason the escalator keeps getting used is for the current UFA class.

If the NHLPA really wanted to reduce the escrow hit, they'd phase in a reduction to the escalator to get it down to zero over a span of multiple years. So instead of 5% one year, it's 4%, and then 3.5% and so on and so forth. This would gradually reduce the escrow hit to the players, as well as not having a big impact on the summers UFAs.

But this requires everyone (NHL/NHLPA) to actually want to do this.

Quote:
Originally Posted by Jets4Life View Post
If anything, it should have been capped at $70 million. It's badly outperformed inflation, and the fact that the Canadian Dollar has dropped to 0.75 US is a recipe for disaster, and when the CBA is up, another half season will be lost.
This was always going to be the case. Sad, but until the NHL has more to lose by missing games then they have to gain, it's in their best interest to miss a few games to get a better long term deal. Fortunately we're getting closer to this point where missing games might actually hurt them. But for the next CBA? Yeah we're going to miss games.

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07-10-2017, 04:27 PM
  #55
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Originally Posted by Riptide View Post
But for the next CBA? Yeah we're going to miss games.
... fraid so Riptide. All 4 Leagues using the Proskauer Rose playbook.

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