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McKenzie clarifies a couple CBA things

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07-15-2005, 11:05 AM
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jt
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McKenzie clarifies a couple CBA things

http://www.tsn.ca/columnists/bob_mckenzie.asp

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One of the most significant is that the players' share of revenue will rise as revenues rise. We all know it starts at 54 per cent, but it goes up to 55 per cent at $2.2 billion, 56 per cent at 2.4 billion and 57 per cent at 2.7 billion.
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Another key thing to understand is the cap figure. Yes, it's $39 million, but that doesn't mean you can't have players on your roster whose annual salaries add up to more than $39 million.

You just can't have them on your roster for the whole year. That $39 million figure is not some mythical paper-number, it's how much a team can actually spend on salaries in one year.

So a team that runs way below the cap for most of the year could conceivably add a big salary player at the trade deadline and, on a paper payroll, go over the cap - so long as the actual money spent on salaries stays below $39 million, it's not a problem.

A team could conceivably go into the playoffs with a roster whose salaries add up to more than $39 million. It's all a matter of balancing the books.
So a team can go over the cap at any point they want during the season...just so long as they don't spend more than $39 mil by the end. I wonder what happens if they do?

The way I read this, it doesn't matter what your payroll is at any given moment. Your payroll could be $100 mil on 10/10/05 but if you haven't actually written checks totalling $39 mil at the end of the season, you're fine.

But what if you have a guy with a bonus for awards...or winning a Cup? Does the league void a trade if the Sens are at $38.5 mil but with Hasek having a bonus that pays him $1 mil if they win the Cup? What if he has 25 wins with 30 games to go and gets paid $1 mil if he finishes the season with 45 wins?

Hmmmm....

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Old
07-15-2005, 11:17 AM
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Good question

I heard a rumor that those types of bonuses will count against the following years cap

 
Old
07-15-2005, 11:30 AM
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I guess this is why the talks were so complicated over the last few weeks. I've noticed that when anything is over-complicated that the opportunity for anomalies is not a linear function, it skews more to the square law or a logrithmic function. So I guess there will be even more chances for liars to figure and figures to lie. We need a couple of lawyers on the coaching staff.



Quote:
Originally Posted by jt
http://www.tsn.ca/columnists/bob_mckenzie.asp





So a team can go over the cap at any point they want during the season...just so long as they don't spend more than $39 mil by the end. I wonder what happens if they do?

The way I read this, it doesn't matter what your payroll is at any given moment. Your payroll could be $100 mil on 10/10/05 but if you haven't actually written checks totalling $39 mil at the end of the season, you're fine.

But what if you have a guy with a bonus for awards...or winning a Cup? Does the league void a trade if the Sens are at $38.5 mil but with Hasek having a bonus that pays him $1 mil if they win the Cup? What if he has 25 wins with 30 games to go and gets paid $1 mil if he finishes the season with 45 wins?

Hmmmm....

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07-15-2005, 12:51 PM
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Quote:
Originally Posted by guzmaniac
So I guess there will be even more chances for liars to figure and figures to lie. We need a couple of lawyers on the coaching staff.
Isn't that what a "Cap"ologist does?

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