Official Cap Numbers Final - Per Leafs Lunch

X0ssbar

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So my question is this - did the union wave (can't exactly remember what its called) the 5% escrow deal?

In other words from what I read the union had the option of either:

1. waiving the 5% escrow and increase the higher cap limit (which was rumored to be 50 mil if waived) but run the risk of paying more out in escrow at the end of the year to the owners if they took in more than their alloted 55% of total revenues...

2. include the 5% and have a lower cap limit (rumored to be 48 mil) which would lessen the blow that the players would have to pay out to the owners as there would be more money in that escrow account in case players collected more than their 55% of revenues.

IB your our designated cap expert here - does that make sense to you?

The rumor was that the MLB union encouraged the NHLPA to raise the cap as much as possible...and makes sense considering Fehr just had their ear this past week.

Anyhow... I can't see the cap continues to rise this much year to year although with the extra jersey revenues this year it would surpirse me next year but you've got to think ticket prices are close to being maxed out and this is a primarily gate driven league.
 

Zymergist

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Jun 12, 2007
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Anyhow... I can't see the cap continues to rise this much year to year although with the extra jersey revenues this year it would surpirse me next year but you've got to think ticket prices are close to being maxed out and this is a primarily gate driven league.
It increases because the Canadian dollar has been increasing in value every year compared to the US dollar. So when you convert Canadian club profits to US dollars it gives the appearance that they made more money this year. If the Canadian dollar drops in value, they will be in trouble.
 

LeHab

Registered User
Aug 31, 2005
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Which teams will have a 50 mil. payroll..?....anyone know?

Habs president said the team will have enough money to invest in a star player so I assume we could be close to the limit. The question is now if a star player wants to come here and who it may be. :)
 

Ted Hoffman

The other Rick Zombo
Dec 15, 2002
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So my question is this - did the union wave (can't exactly remember what its called) the 5% escrow deal?

In other words from what I read the union had the option of either:

1. waiving the 5% escrow and increase the higher cap limit (which was rumored to be 50 mil if waived) but run the risk of paying more out in escrow at the end of the year to the owners if they took in more than their alloted 55% of total revenues...

2. include the 5% and have a lower cap limit (rumored to be 48 mil) which would lessen the blow that the players would have to pay out to the owners as there would be more money in that escrow account in case players collected more than their 55% of revenues.

IB your our designated cap expert here - does that make sense to you?
You're talking about the 5% inflator provision - had the NHLPA waived it as they did last year, the cap would have been at $47.9 million. They didn't - so we have the higher cap number. Leaving the inflator out would have held player salaries down, but would have also held down the amount the players have to pay into escrow.

And if last year was a sign of anything, the players will end up paying 10-12% into escrow this year like last year - and will probably lose most of it at the end of the season as teams race like hell to spend to the limit ASAP.
 

sticknrink

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Aug 17, 2006
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or maybe with the new CBA the owners are being forced to report revenues that previously were being moved into other accounting groups.

Yeah, they'll magically report more revenue just so they can pay players more money in addition to paying more taxes. :shakehead

Next thing you'll tell me aliens are causing the cap to go up.
 

hawksfan50

Registered User
Feb 27, 2002
13,984
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THE usual suspects will spend TO THE MAX(DET,TOR,NYR,PHI) but now joined by others (OTT,L.A.) -yep, NHL sure lfixed things up with the lock-out...

WANT TO BUY YOUR WAY TO A CUP? STEP RIGHT UP --MAKE THE AGENTS HAPPY CAMPERS--AGAIN!
 

thinkwild

Veni Vidi Toga
Jul 29, 2003
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If a team was at the bottom of the payroll range only $16mil less in salaries than teams spending to the cap, do you will their fans would notice the difference and feel confident enough to win to maintain season ticket levels that they wouldnt have done if their was a a 60 mil disparity but they could keep more of their young stars?



I wonder what the average player salary is now. I remember the complaint was that a $1.8 mil als was unsupportable, and $1.3 was needed. I havent heard anyone announce als. Any news on it?
 

X0ssbar

Guest
You're talking about the 5% inflator provision - had the NHLPA waived it as they did last year, the cap would have been at $47.9 million. They didn't - so we have the higher cap number. Leaving the inflator out would have held player salaries down, but would have also held down the amount the players have to pay into escrow.

And if last year was a sign of anything, the players will end up paying 10-12% into escrow this year like last year - and will probably lose most of it at the end of the season as teams race like hell to spend to the limit ASAP.

Yes...that was what I was referring to. I thought they took that provision last year but that's what I get for thinkin. Thanks for the clarification.
 

X0ssbar

Guest
Yes, completely ignore the drop from a $60 million range in payroll to $16 million.

Exactly...there is still much more competitive balance in this new system compared to the old....and to me, the revenues are obviously there to justfiy the cap limit so I really don't have a lot of complaints and I'm a small market team fan.

Sure I'd like it to be that every team had an equal amount of money to spend in every market but that's not realistic in this league unless they really overhaul the revenue sharing system and I don't see the big markets agreeing to that.
 

Brent Burns Beard

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Feb 27, 2002
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Yeah, they'll magically report more revenue just so they can pay players more money in addition to paying more taxes. :shakehead

Next thing you'll tell me aliens are causing the cap to go up.

maybe you misunderstood. i was suggesting that under the new CBA the owners were having to disclose revenues that they previously had diverted to other area's such as arena revenue.

this can also be a cause for the revenue rising, no? they are legislated to report revenues that previously they had pure discretion on how to manipulate to their advantage.
 

thinkwild

Veni Vidi Toga
Jul 29, 2003
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Ottawa
They do. Without the cap, teams like the Leafs would be winging $8-9M contracts around to everyone. Besides, it'll start going down soon enough.

Its kind of funny looking back now, remember when they came back from the lockout with a $39 million cap, and many fans thought, oh my how could they set it that high, and surely it was going to drop the next year.

And now its $50m. Well i guess its not as bad as Bill Gates line about how could anyone need more than 640k for their PC. :)
 

Namso

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Aug 25, 2005
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anyone know what the nba soft cap is??? i heard it was around 50 million also.

edit: It was 53 million last year in the NBA.

Also for reference, the NFL salary cap was 102, and will probably be 109 this year.
 

Bobby Orr

Guest
anyone know what the nba soft cap is??? i heard it was around 50 million also.

edit: It was 53 million last year in the NBA.

Also for reference, the NFL salary cap was 102, and will probably be 109 this year.

For even more reference, the CFL is 4.05, MLS is 1.9, Arena Football is 1.82 and the WNBA is 728K.
 

kdb209

Registered User
Jan 26, 2005
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anyone know what the nba soft cap is??? i heard it was around 50 million also.

edit: It was 53 million last year in the NBA.

Also for reference, the NFL salary cap was 102, and will probably be 109 this year.
But to show how meaningless the NBA's soft cap (with its boatload of exceptions) - 25 out of 30 NBA teams exceeded last seasons $53.135M cap, some almost $30M over:

http://www.usatoday.com/sports/basketball/nba/salaries/totalpayroll.aspx?year=2006-07

Year / Total Payroll 2006-07

Team Total Payroll
Phoenix Suns $ 82,440,784
New York Knicks $ 81,672,615
Miami Heat $ 78,203,790
Detroit Pistons $ 75,517,622
Minnesota Timberwolves $ 66,734,452
San Antonio Spurs $ 65,645,095
Denver Nuggets $ 65,000,230
Dallas Mavericks $ 64,821,094
Portland Trail Blazers $ 64,751,726
New Jersey Nets $ 63,772,329
Cleveland Cavaliers $ 62,992,678
Houston Rockets $ 62,627,349
Los Angeles Lakers $ 62,251,869
Golden State Warriors $ 62,120,690
Washington Wizards $ 61,853,822
Indiana Pacers $ 61,526,247
Sacramento Kings $ 61,065,219
Orlando Magic $ 60,527,557
Utah Jazz $ 60,325,348
Los Angeles Clippers $ 58,202,032
Seattle SuperSonics $ 56,647,817
Chicago Bulls $ 54,699,276
Milwaukee Bucks $ 54,633,510
Boston Celtics $ 53,620,490
New Orleans Hornets $ 53,171,676
Atlanta Hawks $ 47,812,036
Memphis Grizzlies $ 47,055,458
Philadelphia 76ers $ 44,407,250
Toronto Raptors $ 42,223,168
Charlotte Bobcats $ 41,961,743

The soft cap is set at 51% of total BRI (Basketball Related Income) minus benefits. Back calculating from '06-'07's cap of $53.135M gives an estimated '05-'06 BRI of $3.345B (vs the NHLs '05-'06 HRR of $2.178B).

The NBA also has an escrow system that kicks in if the total player salary exceeds 57% of BRI - an average team payroll of $63.56M
 

nashnaidoo

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Dec 15, 2004
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For even more reference, the CFL is 4.05, MLS is 1.9, Arena Football is 1.82 and the WNBA is 728K.

When you cite these numbers are you trying to draw parallels between the NHL and these other leagues? Admittedly I don't see the relationship, but I'm not very familar with most of them.
 

pavel13

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Aug 15, 2003
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For even more reference, the CFL is 4.05, MLS is 1.9, Arena Football is 1.82 and the WNBA is 728K.

The MLS does not have a $1.9M cap. According to this: http://www.dailybreeze.com/sports/articles/8106677.html the cap is $2.4M, but the MLS makes exceptions for teams, so it's not a hard cap. LA Galaxy's actual payroll is much higher than that, with Beckham alone making $5.5M.

I know essentially nothing about those other leagues, but it doesn't seem like they are really comparable to the NHL. If they were comparable, players in those leagues would be getting more money.
 

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