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Cap projected to rise by 3.5-4.5 million

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11-01-2010, 10:01 PM
  #1
The Fuhr*
 
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Cap projected to rise by 3.5-4.5 million

http://espn.go.com/nhl/notebook/_/pa...course-staches

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First of all, NHL revenues should slightly go up next season if the economy continues to improve. More importantly, a new U.S. television deal should be struck early next year. If the additional television revenue is pumped directly into the salary-cap number, the salary cap is expected to rise by at least $3.5-$4.5 million, since the new television deal should increase by at least $100 million a season.
If Melnyk is willing to spend that be awesome.

At the same time it would probably open more doors for the likes of Vokoun and Richards as there is more cap space around the league. More teams can get involved in the bidding


Last edited by The Fuhr*: 11-01-2010 at 10:06 PM.
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11-01-2010, 10:03 PM
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Wow, I guess there'll be a few stupid contracts signed this off-season.

It'll be interesting to see how consistent raising of the salary cap affects league parity.

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11-01-2010, 10:04 PM
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If this is true, DAM we're gonna be rolling in cap-space!

Vokoun, Richards, Backes, Parise, and Carter or bust!

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11-01-2010, 10:07 PM
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Quote:
Originally Posted by The Fuhr View Post
http://espn.go.com/nhl/notebook/_/pa...course-staches



If Melnyk is willing to spend that be awesome.

At the same time it would probably open more doors for the likes of Vokoun and Richards as there is more cap spacearound the league. More teams can get involved in the bidding
I don't really see this as a positive thing for us.

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11-01-2010, 10:08 PM
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a new US tv deal wouldnt really benefit canadian clubs financially, would it?

Melnyk will have to be willing to take more year-to-year losses on the senators and make his money back from SBP and capitaltickets.

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11-01-2010, 10:11 PM
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I don't really see this as a positive thing for us.
Nope that's the negative... did a pro/con thing

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11-01-2010, 10:14 PM
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I think he would be willing to spend up to the cap, for the past few seasons I believe we have been one of the top teams in paying out salary with the front loaded contracts to Heatley, Spezza and Alfredsson

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11-01-2010, 10:17 PM
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Backes-Richards-Semin



The UFA line.

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11-01-2010, 10:20 PM
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Quote:
Originally Posted by danishh View Post
a new US tv deal wouldnt really benefit canadian clubs financially, would it?

Melnyk will have to be willing to take more year-to-year losses on the senators and make his money back from SBP and capitaltickets.
But if it helps the US clubs, through profit sharing it helps the Canadian clubs I guess right?

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11-01-2010, 10:21 PM
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But if it helps the US clubs, through profit sharing it helps the Canadian clubs I guess right?
Revenue sharing depends on attendance, I believe

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11-01-2010, 10:26 PM
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Originally Posted by The Fuhr View Post
Nope that's the negative... did a pro/con thing
Sorry, I meant to say that I see the cap increase as more negative than positive for the very reason you stated.

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11-01-2010, 10:28 PM
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Quote:
Originally Posted by danishh View Post
a new US tv deal wouldnt really benefit canadian clubs financially, would it?

Melnyk will have to be willing to take more year-to-year losses on the senators and make his money back from SBP and capitaltickets.
Melynk would get his share of any additional TV revenues, so taking a simplistic view ($100N/30) it would be $3.3M. So it would be a pretty safe bet Melnyk would continue to spend to the cap.

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11-01-2010, 10:31 PM
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These increases to the cap limit are going to drive up salaries and make all of those front loaded contracts very palatable. Why we didn't sign a few of these is beyond me.

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11-01-2010, 10:32 PM
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Originally Posted by The Fuhr View Post
Nope that's the negative... did a pro/con thing
Not sure how you figure it is a negative, it really is a zero sum. Teams that wished to compete for any of the UFAs would find a way to do so, look no farther than the Rangers or Devils.

What it probably will mean is players will be offer a little more, quickly eroding the benefit of the extra cap space.

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11-01-2010, 10:38 PM
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Originally Posted by Holdurbreathe View Post
Not sure how you figure it is a negative, it really is a zero sum. Teams that wished to compete for any of the UFAs would find a way to do so, look no farther than the Rangers or Devils.

What it probably will mean is players will be offer a little more, quickly eroding the benefit of the extra cap space.
For example a team like the Hawks would have had a very difficult time going after Vokoun but with the above rise it would make it a lot more affordable without dumping any core player or player already under contract

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11-01-2010, 10:41 PM
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Quote:
Originally Posted by The Fuhr View Post
http://espn.go.com/nhl/notebook/_/pa...course-staches



If Melnyk is willing to spend that be awesome.

At the same time it would probably open more doors for the likes of Vokoun and Richards as there is more cap space around the league. More teams can get involved in the bidding


My first thought as well.

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11-01-2010, 10:44 PM
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defiantly not a good thing for teams like us with lots of cap space upcoming,

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11-01-2010, 10:54 PM
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Originally Posted by Kuba Troopa View Post
These increases to the cap limit are going to drive up salaries and make all of those front loaded contracts very palatable. Why we didn't sign a few of these is beyond me.
We do have 3 front-loaded contracts in Spezza, Alfredsson and Fisher.

Actual dollars being spent this year (this is not salary cap dollars) is about $61.5M while next year that drops to about $43M with 15 guys on the books. Assuming the TV money is spread out evenly amongst all 30 teams you could conceivable expect Melnyk to spend about $64 to 65M in 2011/2012.

As long as Murray (or whoever replaces him) can make the contracts fit under the salary cap (i.e. front or back-end loaded contracts) we could be looking to add 6 or 7 players with about $21-22M/year IN REAL DOLLARS (again, not salary cap because real dollars is all that matters to Mr. Melnyk) to spend.

1 goalie
2 defenders
3 forwards

EDIT: This could allow us to do something like:

Player #1 4M-6M-6M-8M-8M
Player #2 8M-8M-6M-6M-4M

The actual dollars being spent here averages between $12-14M/year and the total cap hit would be $12.8M. This keeps the books under control while still allowing us to add two top flight free agents...


Last edited by FlapJackKing: 11-01-2010 at 11:10 PM.
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11-01-2010, 10:54 PM
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Don't think its bad for getting Vokoun, we can stretch for him if need be, but other than that this isn't a great thing. I like it because it will make things exciting, should make for an interesting summer.

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11-01-2010, 10:58 PM
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I see it as a bad thing. Now with more cap space more pending FAs can re-sign with their team, if they decide not to well their bound to be overpayed for their services.

We're screwed. If we don't make the playoffs this season I think it would be smart to take the 11/12 season off. Save Melnyk some cash.

The lockout destroyed this team.

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11-01-2010, 10:59 PM
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this will not improve things! make it a soft cap!

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11-01-2010, 11:03 PM
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Originally Posted by Hale The Villain View Post
I see it as a bad thing. Now with more cap space more pending FAs can re-sign with their team, if they decide not to well their bound to be overpayed for their services.

We're screwed. If we don't make the playoffs this season I think it would be smart to take the 11/12 season off. Save Melnyk some cash.

The lockout destroyed this team.
Im not going to disagree with you, but there are definitely some other factors that hurt this team since the lockout. Mostly managerial decisions.

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11-01-2010, 11:13 PM
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For example a team like the Hawks would have had a very difficult time going after Vokoun but with the above rise it would make it a lot more affordable without dumping any core player or player already under contract
This is true, however the Hawks would be limited to a lesser offer than a team like Ottawa. I believe if the cap rises, the offers will just be larger and teams that didn't have cap space will still be forced to take other measures to compete.

At the end of the day, Ottawa would have $17M plus any cap increase and, Chicago will have $14.5M plus any increase. Not taking any other factors into consideration, team UFAs or RFAs, the Sens could simply outbid Chicago.

IMO the extra money will just get sucked up in free agency bidding. $5M players will become $6M players, and so on. So at the end of the day if $17M would have bought three UFAs, after the increase it will still only buy three.

I do recognize you are suggesting the money makes more teams eligible to bid, however the teams with budget (at or near cap currently) would take whatever steps required if they thought a player was the difference maker.

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11-01-2010, 11:39 PM
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Im not going to disagree with you, but there are definitely some other factors that hurt this team since the lockout. Mostly managerial decisions.
The breakup of the Sens started with the salary cap, the first move being Hossa. The following year it was Redden or Chara, of course hindsight says Muckler made the wrong choice, but one of them was gone.

Then Muckler moved Havlat, it was never stated but probably it was because his salary wishes weren't going to fit. However trading him for a bag of pucks was definitely a Muckler mistake IMO.

So the Sens lost a top six forward (got Heatley for Hossa) and a number 1 defencemen, then lost Heatley for reasons unknown. Not sure too many teams would recover from those losses very quickly.

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11-01-2010, 11:51 PM
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On the other hand contracts that would have been prohibitive to trade would suddenly be a lot more palatable.

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