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Restructuring the Salary Cap/CBA

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12-29-2009, 08:16 PM
  #1
JS19
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Restructuring the Salary Cap/CBA

I just thought it'd be an interesting add-on to the CBA/NHL Salary Cap. (Please Don't flame if it has been proposed before) Honestly I don't even know why Bettman wouldn't add a Luxury Tax add-on to the salary cap (Similar to NBA). To those of you who don't know:

The luxury tax is a mechanism that helps control team spending. While it is commonly referred to as a "luxury tax," the CBA simply calls it a "tax" or a "team payment." It is paid by high spending teams -- teams whose payroll exceeds a predetermined tax level. These teams pay one dollar for each dollar their payroll exceeds the tax level The tax level is determined prior to the season, and is computed by taking 61% of projected BRI, subtracting projected benefits and adjusting for whether the previous season's BRI was above or below projections. They then divide by the number of teams (except expansion teams in their first two seasons) to arrive at the tax level.

I could see the Thrashers (given their Kovy situation)/Blackhawks/Sharks/to a certain extent the Red Wings/Deep-Pocketed Owners taking advantage of this while the league also benefits from getting the tax money. (With this in place all this CBA confusion would be gone).

Plus it leaves the team with the option on going "championship mode" with a consequence that is minor only if the owner is ballsy enough to do it.

Of course for it to be stable the NHL could do this:

Salary Cap: mid-50mil
Luxury Tax: from high-50's to low-70's

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01-01-2010, 08:22 PM
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kdb209
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Quote:
Originally Posted by JS19 View Post
I just thought it'd be an interesting add-on to the CBA/NHL Salary Cap. (Please Don't flame if it has been proposed before) Honestly I don't even know why Bettman wouldn't add a Luxury Tax add-on to the salary cap (Similar to NBA). To those of you who don't know:

The luxury tax is a mechanism that helps control team spending. While it is commonly referred to as a "luxury tax," the CBA simply calls it a "tax" or a "team payment." It is paid by high spending teams -- teams whose payroll exceeds a predetermined tax level. These teams pay one dollar for each dollar their payroll exceeds the tax level The tax level is determined prior to the season, and is computed by taking 61% of projected BRI, subtracting projected benefits and adjusting for whether the previous season's BRI was above or below projections. They then divide by the number of teams (except expansion teams in their first two seasons) to arrive at the tax level.

I could see the Thrashers (given their Kovy situation)/Blackhawks/Sharks/to a certain extent the Red Wings/Deep-Pocketed Owners taking advantage of this while the league also benefits from getting the tax money. (With this in place all this CBA confusion would be gone).

Plus it leaves the team with the option on going "championship mode" with a consequence that is minor only if the owner is ballsy enough to do it.

Of course for it to be stable the NHL could do this:

Salary Cap: mid-50mil
Luxury Tax: from high-50's to low-70's
This has been discussed ad nauseum since (and during) the lockout.

Why would the majority of NHL teams (ie not the Leafs, Rangers, etc) want this change - since it basuically just puts the big market teams to a similar competitive advantage as they had pre-cap.

And, unless you are also planning on abolishing the 54-57% Players Share (and there is no chance in hell the owners agreeing to that), every dollar of extra salary that a team pays in salary in the luxury tax range is a dollar that comes out of the pockets of every other NHL player through escrow - it's a zero sum game. Why would the NHLPA support this - it helps the few high end stars at the expense of everyone else.

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