Floating cap?

Discussion in 'The Business of Hockey' started by SedinFan*, Jul 23, 2005.

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  1. SedinFan*

    SedinFan* Guest

    Just to clarify, this is a floating cap correct? As revenues increase, the cap number will go up?

    Once this is answered, mods feel free to close the thread.
     
  2. Seachd

    Seachd Registered User

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    Yes, and if revenues go down, the cap goes down.

    If reveues go up to certain points, the percentage up revenue also goes up.

    BTW, you can delete the thread yourself.
     
  3. Dougie93

    Dougie93 Registered User

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    What are the dollar amounts that revenues must hit before the percentages go up?
     
  4. SedinFan*

    SedinFan* Guest

    All I read was that if league revenues go over 2.7 billion, the players will get 57%.
     
  5. Cloned

    Cloned Gabby for Gold!!!

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  6. rockon83

    rockon83 Registered User

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    so say a team spends the max, 39m or whatever. revenues for this year are much lower than the expected 1.7b, and next year's projections turn into 1.5b. what happens to the team with players signed for 39m, which is now over the cap, being that the cap lowered??
     
  7. Captain Ron

    Captain Ron Registered User

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    They would have to trade them for cheaper players or hope at least 1 of their high priced players retired.
     
  8. Hockey_Nut99

    Hockey_Nut99 Guest

    I have been wondering this myself. I believe the cap will go down for sure next year as revenues might ot even reach 1.7 Billion. Who knows. I wonder what will happen if a team has a payroll higher than one in a previous year.
     
  9. thinkwild

    thinkwild Veni Vidi Toga

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    If the revenues were much lower, unlikely, then the extra money paid to the players would be taken out of escrow, a new lower cap would be created for the next year, and the team would have to cut players to get under the new cap.
     
  10. kdb209

    kdb209 Global Moderator

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    And unlike this year (during this one week buyout period only), any buyouts next year WILL count against the cap.
     
  11. Captain Ron

    Captain Ron Registered User

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    This is one reason that there are not very many long term contracts in the league. If next years cap is lower it is more than likely you will have 4-5 free agents leaving your team. These players would have to be replaced by lower priced free agents on the market or by rookies from the minors.
     
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