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Nhl Salary Cap To Increase To $64.3 Million In 2011-12 Season

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Old
06-19-2011, 11:02 PM
  #1
Placebo Effect
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Nhl Salary Cap To Increase To $64.3 Million In 2011-12 Season

"We're hearing the #NHL salary cap will be set between $63.5 and $64 million, but it's not set in stone just yet."
https://twitter.com/#!/capgeek/status/82653408972111872

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06-19-2011, 11:22 PM
  #2
Prongo
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http://twitter.com/#!/TSNBobMcKenzie...63249056772096

looks like the cap ceiling will be 64 million

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06-19-2011, 11:30 PM
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Maybe someone already brought it up, but has anyone actually done the math that includes inflation in the cap rise from that 39 million post lockout?

Average inflation rate is about 3% per year, give or take. On 39 million, thats an inflation rate of 1.17 million per year. I am not going to do the math to work out the increased rate per year based on yearly numbers, but if you just take the 39 million number and multiply it by 6 years, thats an increase of 7 million based on inflation alone, putting the league at 46 million. (and again, I would stress the actual cap increase related to inflation would be higher, but I am not doing the math for every year)

so take that 62ish - the 46 ish, and you have an increase of only 16 million over 6 seasons. That is an increase in value, spending capacity, and cost of 2.67 million per year for a team. (I imagine that number would be closer to 2.2 if I bothered to do the proper inflation math)

Its not unreasonable to expect a sports league to see an increase in revenue of 2.2-2.6 million per year per team...and not every team is going to actually increase from that. Its even easier to explain these increases if you look at the fact that several of the oldest buildings in the league have been replaced, which increases the gate take, which is where the NHL makes its money.

How many teams were actually at a salary level that would require them to spend more money based on that last seasons levels anyways?

So roughly 43 mill was the floor last year. If it goes up by 2.6, the only teams that would have to spend more to reach the floor are the Avalanche, Islanders, Oilers, Blues, and Panthers. Of those teams, I fully expect both the Oilers and Blues to spend more than enough extra to get up there next year, and the Oilers would be there with Souray on the roster. The Avs, historically, have shown they will spend. Only reason they are so low is that they don't have guys on the roster that can command that level. Florida does not need to spend much. The only team I know nothing of is the Islanders.





Hell, do the math for last year. 59.4 x 2010-2011 inflation rate of 3% = 1.78.

That means, roughly, that you would be at 61.18 million if you used 2009-2010's revenue figures with the 2010-2011 inflation factored in. What does that mean, the NHL is expecting each team to spend an additional 818k if the number is 62.2. If each team in the NHL is not pulling in roughly that from the improved TV deal alone, I would be shocked. Granted, some teams have lost in other ways due to the economic situation, but thats not a huge jump.


Last edited by Drury_Sakic: 06-19-2011 at 11:38 PM.
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06-20-2011, 12:15 AM
  #4
McDonald19
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The floor is just too high at 48 million.

I'm sorry, but why did we have a lockout??

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06-20-2011, 12:31 AM
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The NHL made a mistake going strictly on revenue as a whole when revenue isn't precisely split across the league, which it should be. But that would take a massive restructuring

That way all franchises would be safe, in a sense. Having weak franchises doesn't bolster the profits of others and it would help the NHL realign to more popular markets to increase proper league growth.

The idea was good but the fundamental league structure isn't in place. If it was done this way, the NHL owners would always profit no matter what, and the players would get their money no matter what. There's just too much of a gap between the large markets and the small (and in some cases weak) markets

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Old
06-20-2011, 01:08 AM
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Noldo
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Quote:
Originally Posted by Drury_Sakic View Post
Average inflation rate is about 3% per year, give or take. On 39 million, thats an inflation rate of 1.17 million per year. I am not going to do the math to work out the increased rate per year based on yearly numbers, but if you just take the 39 million number and multiply it by 6 years, thats an increase of 7 million based on inflation alone, putting the league at 46 million. (and again, I would stress the actual cap increase related to inflation would be higher, but I am not doing the math for every year)
The numbers are actually a bit lower, since the cap is not calculated based on the upper limit (originally 39, now expected to be 64) but based on cap midpoints (31 -> 56).

On the other hand, the original cap number should probably be disregarded as it was based on preliminary estimations instead of actual HRR calculations used for determining the cap the following years and rapid rise in cap after the lockout would indicate that the number was originally estimated a bit low.

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06-20-2011, 03:22 AM
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Nhl Salary Cap To Increase To $64 Million In 2011-12 Season

http://tsn.ca/nhl/story/?id=369480

Quote:
With the National Hockey League Entry Draft less than a week away and the potential for trades escalating this week and next with the free agency period looming, the salary cap will be going up by nearly $5 million next season.

Clubs and agents are being told next year's salary cap will be set at an upper limit of $64 million with a floor of $48 million.

During the 2010-11 season, the salary cap had an upper limit of $59.4 million.

The league's cap - entering its seven season under the current collective bargaining agreement - has risen every year since the end of the NHL lockout when the cap was set at $39-million.

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06-20-2011, 03:34 AM
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Howard Beale
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I still find it hilarious how in 6 years we've gone from a cap floor of $23M and max of $39M, to a cap floor of $48M!

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06-20-2011, 03:58 AM
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And Florida needs to find some way to spend $30 million in the next few months.

Does the CBA run out again next summer? Some adjustments need to be made.

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06-20-2011, 04:00 AM
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And Florida needs to find some way to spend $30 million in the next few months.

Does the CBA run out again next summer? Some adjustments need to be made.
The cap gets raised because the league increases the revenue. And dont forget the annual inflation.

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06-20-2011, 04:04 AM
  #11
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Originally Posted by PsychoDad View Post
The cap gets raised because the league increases the revenue. And dont forget the annual inflation.
Lol the cap gets raised because the Canadian teams are thriving right now

The last numbers I saw was them bringing in close to 40% of revenue so with 1 more joining that numbers should go up even more

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06-20-2011, 04:06 AM
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11m and change for the Devils with the cap increase.. but oh wait they can't sign Parise.

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06-20-2011, 04:07 AM
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Originally Posted by Canuckfan4Life2 View Post
Lol the cap gets raised because the Canadian teams are thriving right now
There is also the fact that the large US markets tend to have competitive teams right now - NYR, Chicago, Boston, LAx2, Washington, Philadelphia, San Jose, Detroit. That helps revenues as compared to when smaller markets are doing well.

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06-20-2011, 04:22 AM
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Originally Posted by Lexicon Devil View Post
There is also the fact that the large US markets tend to have competitive teams right now - NYR, Chicago, Boston, LAx2, Washington, Philadelphia, San Jose, Detroit. That helps revenues as compared to when smaller markets are doing well.
That is true alot of those teams are selling out regularly but it's all about revenue and Toronto,Montreal and Vancouver are considered some of the most expensive tickets in the NHL and these teams sell out everynight no matter what teams they're playing against

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06-20-2011, 04:25 AM
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Does anyone think the cap / floor is too high?

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06-20-2011, 04:27 AM
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Originally Posted by Canuckfan4Life2 View Post
That is true alot of those teams are selling out regularly but it's all about revenue and Toronto,Montreal and Vancouver are considered some of the most expensive tickets in the NHL and these teams sell out everynight no matter what teams they're playing against
So does Chicago, Boston, New York, Philadelphia and Pittsburgh. I probably left out a few American teams. Let's just not give credit to the American teams right?

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06-20-2011, 04:40 AM
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Originally Posted by SP View Post
And Florida needs to find some way to spend $30 million in the next few months.

Does the CBA run out again next summer? Some adjustments need to be made.
If i was the owner I would just sign my kid to a one year 30 million dollar deal.

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06-20-2011, 04:41 AM
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Originally Posted by mightyquack View Post
Does anyone think the cap / floor is too high?
yes sir, I am too lazy to check right now but i would guess that the salary cap now is approaching where most of the high end teams were spending around in 2004. This just seems rediculous, teams are having trouble keeping there RFA superstars right now plus (Crosby, Malkin, and a whole other bunch are about to hit the FA market) so the NHL is just allowing space for teams to keep there players.

I understand there is an arrangement on revenues from the previous year, but this cap is ridiculous.

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Old
06-20-2011, 04:44 AM
  #19
Canuckfan4Life2
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So does Chicago, Boston, New York, Philadelphia and Pittsburgh. I probably left out a few American teams. Let's just not give credit to the American teams right?
Actually if u wanna look at numbers NYR are the only American team in the elite when it comes to revenue don't forget this is about revenue look at Chicago last year they where a great team won the cup but still lost 3.8 million dollars

Like I said it's about revenue and you may sell out everynight but what people are paying for tickets is the big thing and Toronto Montreal and Vancouver generate revenue because of how expensive the seats are

I just wanted to throw out an example or just some info for others,during the finals here in Vancouver there was a deal going on where for 1500 you could fly to Boston you'd get paid hotel and tickets for games 3 and 4 but for 1500 dollars in Vancouver it wouldn't even get you into the game

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06-20-2011, 04:44 AM
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If i was the owner I would just sign my kid to a one year 30 million dollar deal.
Too bad the max salary anyone can get will be around 11.8 per, though it would be interesting to see it actually happen if there wasnt a limit

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06-20-2011, 04:45 AM
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Cool news for the Canucks.

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06-20-2011, 04:47 AM
  #22
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I like my $20 tickets.

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06-20-2011, 04:48 AM
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Cool news for the Canucks.
Yes sure is keeping the big 3 d men won't be a problem and we'll still have more than enough cap space to go after winger for kes

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06-20-2011, 04:51 AM
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I like my $20 tickets.
Yes but like I've been saying it's about ticket prices and in Canada there aren't no free ticket give aways like some if the teams on there do and even Detroit the tickets are cheap and easy to get there's a reason why you see Canadian teams following in the US

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06-20-2011, 05:07 AM
  #25
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Quote:
Originally Posted by Canuckfan4Life2 View Post
Yes but like I've been saying it's about ticket prices and in Canada there aren't no free ticket give aways like some if the teams on there do and even Detroit the tickets are cheap and easy to get there's a reason why you see Canadian teams following in the US
Apparently there aren't no grammar either.

For the record, I've never seen any of the three Californian teams give tickets away. If they are, can someone please tell me where?

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