HFBoards

Go Back   HFBoards > General Hockey Discussion > The Business of Hockey
The Business of Hockey Discuss the financial and business aspects of the NHL. Topics may include the CBA, work stoppages, broadcast contracts, franchise sales, and NHL revenues.

The Salary Cap.... Questions.

Reply
 
Thread Tools
Old
10-30-2012, 02:52 PM
  #1
JMT21
Registered User
 
Join Date: Aug 2011
Posts: 803
vCash: 500
The Salary Cap.... Questions.

Without the Jets in Winnipeg I paid zero attention to the last lockout. Understanding that the salary cap very likely played a big role in getting the NHL back in Winnipeg.

So... if Fehr wins and cap is back.... (unlikely but just speculating)..... what does the league look like.

How much would the big 3 or big 5 increase payroll? 20M - 40M - 60M ??

Would the bottom feeders drop payroll by 15M - 20M each ?

Does a salary cap affect contractual rights ?

Would some teams just fold?

assuming the guaranteed contracts would be a thing of the past in short order.

JMT21 is offline   Reply With Quote
Old
10-30-2012, 03:21 PM
  #2
LickTheEnvelope
6th Overall Blows
 
LickTheEnvelope's Avatar
 
Join Date: Dec 2008
Location: Vancouver
Posts: 27,598
vCash: 500
You mean with the cap gone?

LickTheEnvelope is online now   Reply With Quote
Old
10-30-2012, 03:23 PM
  #3
Jarick
Moderator
Doing Nothing
 
Jarick's Avatar
 
Join Date: Jul 2007
Location: St Paul, MN
Country: United States
Posts: 23,412
vCash: 500
Salary cap is $8M above the salary midpoint, which is 57% of league revenues divided by 30 teams (there's also a 5% multiplier in there but let's not get too crazy).

Salary floor is $8M below the salary midpoint. Teams are required to spend at least $16M below the cap.

If the cap was removed, the floor would likely be removed, and revenue sharing would likely be reduced. None of that would be good for anyone except the few richest owners, who may or may not even benefit from it.

I don't think we have to worry about that eventuality.

Jarick is offline   Reply With Quote
Old
10-30-2012, 04:07 PM
  #4
Riptide
Moderator
 
Riptide's Avatar
 
Join Date: Dec 2011
Location: Yukon
Country: Canada
Posts: 8,234
vCash: 500
Quote:
Originally Posted by JMT21 View Post
Without the Jets in Winnipeg I paid zero attention to the last lockout. Understanding that the salary cap very likely played a big role in getting the NHL back in Winnipeg.

So... if Fehr wins and cap is back.... (unlikely but just speculating)..... what does the league look like.

How much would the big 3 or big 5 increase payroll? 20M - 40M - 60M ??

Would the bottom feeders drop payroll by 15M - 20M each ?

Does a salary cap affect contractual rights ?

Would some teams just fold?

assuming the guaranteed contracts would be a thing of the past in short order.
I would assume that's the NHL's first response would be "you want the cap gone, we want the ability to terminate contracts without penalty (call it the Gomez clause)." Now are they still talking or does the cap 'issues' get dropped? I would assume most NHL players can easily live with the cap as long as they're getting guaranteed contracts, and the split is high enough (ie not 30%).

But if you want to envision a league without the cap. Think of it like this.

Toronto, NYR, Philly, Detroit, Vancouver, Montreal, Boston, Pittsburgh and Chicago (all teams with revenues over 110m - per Forbes) would all spend to their hearts content. I'd guess they'd be around 60-90m (dependent on how much the owner wants to add in out of pocket to cover losses). Buffalo might be in there as well as their owner is filthy rich and wants to win. Add in Colorado and anyone else who might have a good core (Edmonton) and is willing to spend money to sustain success for a short period (5-7 years).

The rest of the league would likely be in the 35-60 range as their budget allows. According to Grange and Doug Maclean, it costs ~35m to operate an NHL team per season in non player costs.

I don't think we'd see anyone below 30m again, as the average NHL salary is well over 2m.

However the odds of the NHL ever giving up their cap is next to nothing. They lost a season to get it, and they will hang onto it for dear life. Same goes for linkage (which hasn't really been kind to them due to how it's determined and how high it is).

__________________
"Itís not as if Donald Fehr was lying to us, several players said. Rather, itís as if he has been economical with information, these players believe, not sharing facts these players consider to be vital."
Riptide is online now   Reply With Quote
Reply

Forum Jump


Bookmarks

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 11:02 AM.

monitoring_string = "e4251c93e2ba248d29da988d93bf5144"
Contact Us - HFBoards - Archive - Privacy Statement - Terms of Use - Advertise - Top - AdChoices

vBulletin Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
HFBoards.com is a property of CraveOnline Media, LLC, an Evolve Media, LLC company. ©2014 All Rights Reserved.