Seravalli: Cap Increasing Next Year

[AcerComputer]

Extra $mil now to re-sign Rielly.

 

[EastVillageBlues]

Ken Holland slams his fist on his desk.

''So you're telling me I could have signed Cody Ceci for 4.25M?'', he seethes.

Ceci's contract would still be bad if we have a 50M increase in the cap.

 

[ismelofhockey]

The nhls salary cap increase as well as the cap has been a joke. Since 2013 the cap was at 67 million before covid it was avg 2.5 million increase , now the cap has stayed flat for 3 years and running .

There using a system that has 1990 player salaries to justify any relevance or profitability.
Yes do the gms hand out ridiculous contracts , yes but mind you what we consider ridiculous isn't really considering a cost of living or reality to the market.

The nhl needs to find a solution to a more workable salary cap based on today's market and players salaries , not the 1990s .

Also there is to much watered down talent polluting the nhl andmits ability to bring in new viewers due to a lack of excitement or competition.

Those who speak parity truly lack any ethical or business sense.
What company says we'll today I want to be competitive but tomorrow and for the forseable future I won't be able to generate a profit ?

You do understand that the cap is tied to revenues, right? And that the NHLPA can agree to a bigger hike than revenues allow, knowing they will be paying it back in escrow? So what do 1990 salaries have to do with anything? There isn't a single player playing in the league whose contract was signed in the 90s.

 

[Xoggz22]

This is old news. It was reported that the Cap would be flat this year and increase by $1MM for the next two years and then back to "normal". I believe this was in an Athletic Article when discussing the league calendar a few months ago. Maybe that was speculation and now it's formal?

 

[Khelandros]

This is old news. It was reported that the Cap would be flat this year and increase by $1MM for the next two years and then back to "normal". I believe this was in an Athletic Article when discussing the league calendar a few months ago. Maybe that was speculation and now it's formal?

This was in the MOU that the NHL/NHLPA signed before they returned to play last season. It was item #2 on the list, spelled out exactly as Seravvalli wrote:

• For any League Year where Preliminary HRR is between $3.3 Billion and $4.8 Billion, the Upper Limit for the following League Year shall be between $81.5 Million and $82.5 Million on a pro rata basis (e.g., if Preliminary HRR is $4.05 Billion, the Upper Limit will be $82 Million).
• Once Preliminary HRR for the immediately preceding League Year surpasses $4.8 Billion, the Upper Limit will increase by $1 Million per League Year until the Escrow Balance is paid off

 

[dubplatepressure]

Leafs are saved.

i love that this is the first comment.

 

[DJJones]

It's gonna take them a long time to pay off all the escrow. They were already using the escalator every year.

 

[Just A Bit Outside]

League: "Cap next year may go up $1M"
31 Teams: "Sweet"
Tampa: "lol Cap..."

 

[GeeoffBrown]

Someone really needs to put out an explainer for the escrow and what it means for the players

Also hopefully some kind of comparison with other sports like NFL, NBA and MLB to show where does NHL stand.

The league and players have an agreement where they split revenue 50/50 and escrow is a system that facilitates that. So, if the players get paid more than 50% they have to pay it back.

 

[Spurgeon]

So essentially $ to cover some buyout costs around the league

Just $14 million more and the Wild will be in the clear!

 

[PromisedLand]

Extra $mil now to re-sign Rielly.

2.2 million, Kessel's 1.2M retention ends after this season

 

[JianYang]

If the debt owed to the owners is still expected to increase, then doesn't that make this cap increase completely artificial?

 

[CokenoPepsi]

Signing bonus money doesn't go into escrow, right?

 

[AvroArrow]

HF - Matthews is overpaid by about a Mil or so
Also HF - ha ha 1M, it's useless, basically not even a raise, what the hell are you gonna do with 1M

In a cap world every dollar counts, 1M is HUGE for teams up against the cap. If it does in fact increase the Leafs might be able to hold onto Rielly.

 

[NMacrules]

In Leafland, Kessel will also be off the books to a tune of 1.5 million. So this helps the Leafs with an extra 2.5 to play with.

 

[Nikolajs Sillers]

nice, an extra 4th line player!!

Skinner was on fourth line.

 

[Nikolajs Sillers]

League: "Cap next year may go up $1M"
31 Teams: "Sweet"
Tampa: "lol Cap..."

Tampa " What's a cap?"

 

[GreatSaveLuongo]

Tampa can reduce their LTIR effort by 1mil

 

[Whalers Fan]

Or an extra million for GMs to hand out on a bad deal.

Or $43,478 raises for 23 players on the roster.

 

[Whalers Fan]

Fans are back in the stands so of course the cap is going to start rising that makes sense

New TV contract, too.

 

[OgeeOgelthorpe]

I’ll try to be concise.

Every year the nhl tries to predict their revenue growth. This growth will determine the salary cap.

To protect against losses, a certain percentage of players’ salaries go into an escrow account handled by a third party administrator. (I think it’s currently 20% of player salary!).

If the league falls short of its projected growth, the money in the escrow account goes back to the owns to cover the difference between projected growth and actual growth. The owners usually get all of the escrow money.

Are there any other professional sports leagues that do this to their players?

 

[Siludin]

This doesn't sound like a lot, but this will really help the Canucks re-sign Boeser AND Motte. They didn't have a lot of salary coming off the books.

 

[AcerComputer]

2.2 million, Kessel's 1.2M retention ends after this season

I assumed the $1.2m was already going to Rielly

 

[snipes]

The nhls salary cap increase as well as the cap has been a joke. Since 2013 the cap was at 67 million before covid it was avg 2.5 million increase , now the cap has stayed flat for 3 years and running .

There using a system that has 1990 player salaries to justify any relevance or profitability.
Yes do the gms hand out ridiculous contracts , yes but mind you what we consider ridiculous isn't really considering a cost of living or reality to the market.

The nhl needs to find a solution to a more workable salary cap based on today's market and players salaries , not the 1990s .

Also there is to much watered down talent polluting the nhl andmits ability to bring in new viewers due to a lack of excitement or competition.

Those who speak parity truly lack any ethical or business sense.
What company says we'll today I want to be competitive but tomorrow and for the forseable future I won't be able to generate a profit ?

To the bolded, I’d argue the talent and excitement of the game isn’t the issue for bringing in new fans, the incredibly exciting right now with rules and equipment changes over the last 10-15 years. Watching what McDavid, Draisaitl, MacKinnon, Matthews, Kucherov, etc. do a nightly basis is jaw dropping. Even the 3rd and 4th liners have serious skill in the lineup.

The NHL does a horrendous job marketing it’s star players and an even worse job officiating the game especially in the playoffs. Unlike the NBA and NFL, the NHL does nothing to protect its star players in comparison, for better and for worse.

I don’t mind letting some of the rough stuff go and letting guys battle out front in the playoffs, but the obstruction and water skiing type holding on star players in the playoffs makes some of the games nearly unwatchable.

 

[glenbuis]

The nhls salary cap increase as well as the cap has been a joke. Since 2013 the cap was at 67 million before covid it was avg 2.5 million increase , now the cap has stayed flat for 3 years and running .

There using a system that has 1990 player salaries to justify any relevance or profitability.
Yes do the gms hand out ridiculous contracts , yes but mind you what we consider ridiculous isn't really considering a cost of living or reality to the market.

The nhl needs to find a solution to a more workable salary cap based on today's market and players salaries , not the 1990s .

Also there is to much watered down talent polluting the nhl andmits ability to bring in new viewers due to a lack of excitement or competition.

Those who speak parity truly lack any ethical or business sense.
What company says we'll today I want to be competitive but tomorrow and for the forseable future I won't be able to generate a profit ?

yes let's completely ruin the game by getting rid of the hard cap . then we can watch the same 6-8 teams in the playoffs every year like baseball. tell me that's a level playing field . it used to be the yankees or red sox starting pitching staff made more than 10 teams . now it's even worse . if your gm sucks at signing contracts get rid of him