December 2023 BOG meeting in Seattle; UPD cap est 24-25 $87.675m

[mouser]

I think the far bigger issue with escrow was far too many teams spending above the midpoint.

Agreed. The fundamental design of the original 2005 cap formula was flawed—assuming team spending on average would trend towards the midpoint rather than the cap ceiling. Eventually guaranteeing the need for 10% Escrow clawbacks over the 2010 decade even with 4% annual revenue growth.

But neither the NHL or PA were truly interested in negotiating a solution to the problem until the 2020 MOU. I’m not confident the 2020 MOU’s change to the cap formula is the most ideal solution, but it should bring player compensation much closer to 50% of HRR, minimizing or eliminating Escrow for the players.

 

[mouser]

Seravalli says source(s) told him 2024-25 cap would be approximately $93m without the 5% MOU increase limit.

 

[StreetHawk]

Seravalli says source(s) told him 2024-25 cap would be approximately $93m without the 5% MOU increase limit.

$93 mill, even for 25/26 would be greater than the 5% increase on $87.7 mill which is $4.35 mill, thus $92 million.

 

[Squiffy]

So who is holding it back, the PA or the League?

I believe we all agree that by math the cap should be higher then is currently projected for 2024/25. I also think the MoU mostly straightened out escrow concerns, the lagging calculation, heck the whole thing, is designed around fixing the escrow problem.

 

[StreetHawk]

So who is holding it back, the PA or the League?

I believe we all agree that by math the cap should be higher then is currently projected for 2024/25. I also think the MoU mostly straightened out escrow concerns, the lagging calculation, heck the whole thing, is designed around fixing the escrow problem.

PA hates escrow. Players want to get most of their paycheck that they signed for. Escrow was close to 10% final calculation in the couple of years prior to Covid. Goal from the PA is to bring that back down in line to 5% or less.

 

[mouser]

So who is holding it back, the PA or the League?

I believe we all agree that by math the cap should be higher then is currently projected for 2024/25. I also think the MoU mostly straightened out escrow concerns, the lagging calculation, heck the whole thing, is designed around fixing the escrow problem.

Nominally either party could be holding it back, many believe the NHL wants some concession in exchange for raising beyond 5%.

Still, there's a benefit to the players to stagger the cap raise across multiple years so more than a single free agent class gets a boost when signing new contracts.