Budgets tighter than some are thinking?

[Lanny MacDonald*]

After seeing some of the threads that outline the shopping sprees that some teams are going to be going on (hahahaha) I thought I would burst a hole in these balloons early. The cap is $39 million, INCLUDING bonuses and benefits. This means that any player that has substantial bonus clauses in their contracts will have that full value placed under the cap. For example, John Smith has a base salary of $6.5 million, and has bonus clauses in his salary that could add another $2 million to his earnings, that whole amount will be included under the cap. In other words, Smith's contract would cost his team $8.5 million against the cap. With each individual bonus clause a team has on the books, it shrinks the amount a team may spend in reality. So fo all you folks considering signing Lindros and Allison to $2 million contracts, laced with bonuses, this is not going to work. The economic reality of the new NHL should start to hit hard in the next 10 days.

Click to read more...

 

[Peter]

After seeing some of the threads that outline the shopping sprees that some teams are going to be going on (hahahaha) I thought I would burst a hole in these balloons early. The cap is $39 million, INCLUDING bonuses and benefits. This means that any player that has substantial bonus clauses in their contracts will have that full value placed under the cap. For example, John Smith has a base salary of $6.5 million, and has bonus clauses in his salary that could add another $2 million to his earnings, that whole amount will be included under the cap. In other words, Smith's contract would cost his team $8.5 million against the cap. With each individual bonus clause a team has on the books, it shrinks the amount a team may spend in reality. So fo all you folks considering signing Lindros and Allison to $2 million contracts, laced with bonuses, this is not going to work. The economic reality of the new NHL should start to hit hard in the next 10 days.

It has been reported that ALL bonuses will be standardized and limited. The days of the huge bonus payoffs is over.

 

[Oil_slick9416*]

After seeing some of the threads that outline the shopping sprees that some teams are going to be going on (hahahaha) I thought I would burst a hole in these balloons early. The cap is $39 million, INCLUDING bonuses and benefits. This means that any player that has substantial bonus clauses in their contracts will have that full value placed under the cap. For example, John Smith has a base salary of $6.5 million, and has bonus clauses in his salary that could add another $2 million to his earnings, that whole amount will be included under the cap. In other words, Smith's contract would cost his team $8.5 million against the cap. With each individual bonus clause a team has on the books, it shrinks the amount a team may spend in reality. So fo all you folks considering signing Lindros and Allison to $2 million contracts, laced with bonuses, this is not going to work. The economic reality of the new NHL should start to hit hard in the next 10 days.

as much as i hope what you're saying is true about the bonus laced contracts hitting the cap, do you have a link??

 

[sveiglar]

After seeing some of the threads that outline the shopping sprees that some teams are going to be going on (hahahaha) I thought I would burst a hole in these balloons early. The cap is $39 million, INCLUDING bonuses and benefits.

Bob McKenzie disagrees, at least with regards to benefits.

I can assure you the cap number of $39 million is excluding benefits. I know, I asked the question. Also, keep in mind, the $42.5 million in February was also excluding benefits. It's an apples to apples comparison. Checked, double checked and re-checked again. Now you can lock the thread.

The McKenzie quote was taken from http://www.hfboards.com/showthread.php?t=151952

 

[Mr Sakich]

the benfits are on top of the 39 million but bonusses are defnately in. I have read that there are two types of bonusses

1) the easy to hit ones are counted against the cap when reached.
2) the difficult ones like art ross trophy will count against the next year's cap.

 

[Drake1588]

To reiterate, it is the benefits that apparently add up to about $2.2M per team, per season, that are excluded from the cap. By all appearances, however, all performance and signing contract bonuses are included in the cap figure.

 

[Weary]

After seeing some of the threads that outline the shopping sprees that some teams are going to be going on (hahahaha) I thought I would burst a hole in these balloons early. The cap is $39 million, INCLUDING bonuses and benefits. This means that any player that has substantial bonus clauses in their contracts will have that full value placed under the cap.

How do you know this? Other leagues classify bonuses as either likely to be earned or not. Only the ones that are likely to be earned count against the cap.

 

[TexSen]

Regardless of whether the bonuses are in/out etc. I think the point is valid......there will be a much lesser "spending spree" that most columnists and fans think there will be.

For some reason the logic seems to be that since the cap is $39 mil. that most teams will try to spend up or as close to that amount. Somehow I just don't see that happening.

 

[Mess]

John Smith has a base salary of $6.5 million, and has bonus clauses in his salary that could add another $2 million to his earnings, that whole amount will be included under the cap. In other words, Smith's contract would cost his team $8.5 million against the cap.

What happened to the 20% of $39 mil cap or $7.8 mil as the player max ??

 

[Jaded-Fan]

Not sure why this would be a problem. From what I have heard, every FA of note will be signing with Toronto for the league minimum.

 

[Suntouchable13]

Not sure why this would be a problem. From what I have heard, every FA of note will be signing with Toronto for the league minimum.

Oh boy, here we go

 

[X0ssbar]

Not sure why this would be a problem. From what I have heard, every FA of note will be signing with Toronto for the league minimum.

..even some Leafs fans must admit that their is some funny truth to this statement.

 

[Timmy]

..even some Leafs fans must admit that their is some funny truth to this statement.

It's all about the endorsements, baby.

 

[Captain Ron]

Regardless of whether the bonuses are in/out etc. I think the point is valid......there will be a much lesser "spending spree" that most columnists and fans think there will be.

For some reason the logic seems to be that since the cap is $39 mil. that most teams will try to spend up or as close to that amount. Somehow I just don't see that happening.

As I have stated in an earlier thread the 54% cost certainty will not work if the average team salary goes over $36 million.

 

[mooseOAK*]

After seeing some of the threads that outline the shopping sprees that some teams are going to be going on (hahahaha) I thought I would burst a hole in these balloons early. The cap is $39 million, INCLUDING bonuses and benefits. This means that any player that has substantial bonus clauses in their contracts will have that full value placed under the cap. For example, John Smith has a base salary of $6.5 million, and has bonus clauses in his salary that could add another $2 million to his earnings, that whole amount will be included under the cap. In other words, Smith's contract would cost his team $8.5 million against the cap. With each individual bonus clause a team has on the books, it shrinks the amount a team may spend in reality. So fo all you folks considering signing Lindros and Allison to $2 million contracts, laced with bonuses, this is not going to work. The economic reality of the new NHL should start to hit hard in the next 10 days.

I think that everyone knew or has been told by now that bonuses count against the cap.

 

[Morbo]

Not sure why this would be a problem. From what I have heard, every FA of note will be signing with Toronto for the league minimum.

Nah, they're all going to Pittsburgh, right Jaded?

 

[Jaded-Fan]

Nah, they're all going to Pittsburgh, right Jaded?

Apples and oranges my friend, apples and oranges. I stick by my prediction of the Pens (and the four or five other similarly situated teams) signing four name UFA's (or buy-outs), and that does not even include Recchi signing right before the lockout. We actually have the cap room to spend and the stated desire to be very aggressive. There's your apples. Toronto (and the 7-10 similarly situated teams) may have the desire . . . but cap room? There goes your oranges. Face it, about a third of the league will be lucky to keep their teams mostly together rather than be concentrating on adding 3, 4, or 5 of the biggest name FA's as I have seen in some of these ridiculous threads.

 

[Timmy]

Apples and oranges my friend, apples and oranges. I stick by my prediction of the Pens (and the four or five other similarly situated teams) signing four name UFA's (or buy-outs), and that does not even include Recchi signing right before the lockout. We actually have the cap room to spend and the stated desire to be very aggressive. There's your apples. Toronto may have the desire . . . but cap room? There goes your oranges.

Hmm,


Here's a bold prediction:

Vancouver will not be signing any significant UFAs this summer.

Vancouver won't be doing any buyouts.

Nonis will be basically QOing the RFAs, with few raises of significance.

The core will remain, but without an improvement in net, we'll still be out by the second round.

 

[oilers_guy_eddie]

After seeing some of the threads that outline the shopping sprees that some teams are going to be going on ...

From an Oil perspective, the Oilers have 13 players under contract for $13.5 million and 5 more key RFs who could cost possibly up to 10 million more. That'll leave the Oilers with 5 spots to fill and (based on last year's $32 million budget) over $8.5 million to do it with.

Compared to what Oiler fans are used to, that IS an epic shopping spree.

 

[shakes]

Not sure why this would be a problem. From what I have heard, every FA of note will be signing with Toronto for the league minimum.

When did this thread become about Toronto? You know what's going to happen now. Moderators really should be moderating more.

 

[Beukeboom Fan]

I stick by my prediction of the Pens (and the four or five other similarly situated teams) signing four name UFA's (or buy-outs), and that does not even include Recchi signing right before the lockout.

One thing that we all need to remember is that there will still be a limited number of quality UFA's compared to the demand. Sure there are more than ever before, but now there will be 15-20 teams that are looking to add AT LEAST one quality (top 6 forward or top 4 d-man) UFA. Several teams (PITT, CHI to name a few) will likely be in the market for 2 or 3 of those types of players.

How many posters talk about adding Aucoin or Rathje for $2M? I seem to keep seeing the same names cropping up, and when that happens, the price is going to go up.

 

[Jaded-Fan]

One thing that we all need to remember is that there will still be a limited number of quality UFA's compared to the demand. Sure there are more than ever before, but now there will be 15-20 teams that are looking to add AT LEAST one quality (top 6 forward or top 4 d-man) UFA. Several teams (PITT, CHI to name a few) will likely be in the market for 2 or 3 of those types of players.

How many posters talk about adding Aucoin or Rathje for $2M? I seem to keep seeing the same names cropping up, and when that happens, the price is going to go up.

I do not disagree. In fact that proves my point even more. I was looking at it from the other perspective, as was I think the thread starter. I was looking at the posters who throughout a number of threads on this subject seem to think these players are going to all sign with big market teams who are struggling to get under the Cap as it is.

 

[NotJT]

After seeing some of the threads that outline the shopping sprees that some teams are going to be going on (hahahaha) I thought I would burst a hole in these balloons early. The cap is $39 million, INCLUDING bonuses and benefits. This means that any player that has substantial bonus clauses in their contracts will have that full value placed under the cap. For example, John Smith has a base salary of $6.5 million, and has bonus clauses in his salary that could add another $2 million to his earnings, that whole amount will be included under the cap. In other words, Smith's contract would cost his team $8.5 million against the cap. With each individual bonus clause a team has on the books, it shrinks the amount a team may spend in reality. So fo all you folks considering signing Lindros and Allison to $2 million contracts, laced with bonuses, this is not going to work. The economic reality of the new NHL should start to hit hard in the next 10 days.

The team-by-team cap doesnt include benefits, but includes bonus. The league wide salary cap (54% this year) includes everything.

The NHLPA job will be to get salaries including bonus and benefits to get as close to the 54% as possible.

 

[Lanny MacDonald*]

What happened to the 20% of $39 mil cap or $7.8 mil as the player max ??

Sorry, it was just an example, and I guess a bad one. Consider it with a $5.5 million salary and a $2 million bonus then, so the numbers jive with the 20% max.

 

[FLYLine27*]

It has been reported that ALL bonuses will be standardized and limited. The days of the huge bonus payoffs is over.

Well, accept for rookies.