Players told salary cap will be $44 million

Discussion in 'The Business of Hockey' started by TheMoose, Jun 19, 2006.

  1. TheMoose

    TheMoose Registered User

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    http://tsn.ca/nhl/news_story/?ID=169195&hubname=

    "The NHL Players Association is telling its' membership that the NHL salary cap will rise to a maximum of approximately $44 million per team next season.

    In a message posted on the players only website known as “The Sourceâ€, the NHLPA says the salary cap will range from a minimum of $28 million per team up to $44 million. The message says the figures are approximate, but close to what the final numbers will be.

    The current salary cap has a range of $21 million to a maximum of $39 million."
     
    Last edited: Jun 19, 2006
  2. Flukeshot

    Flukeshot Hextall Activate!

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    Glad to hear it. Mainly because it means that the game is healthier than what they thought it would be at this time.
     
  3. CarlRacki

    CarlRacki Registered User

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    The Associated Press is reporting a $44 million cap and $28 million floor. That's a $5 million increase on the upper end and $6.5 million improvement on the low end.

    Sorry, no link. This comes off the wire.

    {NHL salary cap to rise to $44 million, with a floor of $28 million}
    {By IRA PODELL}=
    {AP Sports Writer}=
    RALEIGH, N.C. (AP) — The NHL salary cap will be about $44 million next season, an increase of $5 million per team, after league revenues were higher than expected in the first year following the season-long lockout.
    NHL commissioner Gary Bettman and players’ association executive director Ted Saskin met Monday in New York and set the upper level of the cap at approximately $44 million with the minimum rising to about $28 million, according to two people with knowledge of the meeting who declined to be identified because the final figures have not been released.
    Bettman returned to North Carolina on Monday night and presented the Carolina Hurricanes with the Stanley Cup following their 3-1 victory over the Edmonton Oilers in Game 7 of the finals. Before the start of the series, Bettman said he expected next season’s cap to fall in the $43 million to $44 million range.
    The cap figures will be a topic Wednesday when the NHL board of governors convenes in New York. The final numbers will be officially set once all the revenues from the 2005-06 season are calculated by the end of June.
    They are expected to be in the $2.1 billion range, significantly higher than the projected amount of $1.8 billion. The league and the union used that figure to set this season’s cap at $39 million with a floor of $21.5 million.
    “The previous cap wasn’t miscalculated, it was a negotiated number,†Bettman said before Game 1 of the finals. “It is predominantly an increase in revenues. The cap was lower than it should have been this year based on what the revenues turned out to be, but nobody had any idea what the revenues were going to turn out to be because nobody had ever been in the situation that we were in.
    “Revenues will be at an all-time high for this league.â€
    The NHL just completed its first season with a salary cap system. It was the major sticking point in the lockout that forced the cancellation of the entire 2004-05 campaign. The players’ association had said it would never accept a salary cap, yet relented last summer to get a deal done.
     
  4. HOF

    HOF Registered User

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    The big market teams must be jumping up and down. It will probably go down after this season. No way it goes up again.
     
  5. Skk82

    Skk82 Registered User

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    one never knows...afterall, when the agreement was signed a lot of people laughed at the players, since conceivably the cap would have been lowered, depending on the league-wide revenue's that were supposed to be so badly damaged during the lockout.

    i think it's a good sign that the floor is rising in congruence with the cap, so that the discrepancy of the large markets still won't be putting out huge salaried teams compared to the bottom feeders.

    it'll actually be interesting to see if teams like detroit, philadelphia and new york can learn how to spend their $$ in a way to combat the teams like edmonton, carolina and buffalo. i can't wait to see if the NHL sees parody-- teams that will be good one year, terrible enough- like the way it seemingly is in football.
     
  6. GSC2k2*

    GSC2k2* Guest

    Can anyone understand the frigging difference between "parody" and "parity"????!?!

    Ken anyoen spel heere????
     
  7. Timmy

    Timmy Registered User

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    Don't get involved.

    You'll just loose the argument.
     
  8. cws

    cws ...in the drink

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    Actually, those could be used in a good pun about some teams.

    Of course, that's assuming the people understand what parody means. And they understand what a pun is. And they could recognize it when you used those words together to make a pun...

    ..on second thought, screw it; that's a lot to assume. Your return on comic investment wouldn't be worth it.
     
  9. AdmiralPred

    AdmiralPred Registered User

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    I think that parity, like in MLB and relative to the NFL, exists inherently in the NHL.
    I think that parody exists inherently in some the posters here in the regard they hold for Southern markets.
     
  10. LordHelmet

    LordHelmet Registered User

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    So is this the end all, definite cap number? Or is the PA still thinking towards changing the calculation or the 5% thing to reduce the need to pay into escrow?
     
  11. Irish Blues

    Irish Blues Worth waiting for :)

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    Consider it to be $44 million. Teams can go over by up to 10% during the offseason but have to be in compliance with the upper limit by the end of training camp. Besides, no one is going to leap to the upper limit on July 1 - they'll wait to see what they're going to do with their own free agents, calculate how much room they might have, figure out what they need and how much they're willing to spend, and then make offers accordingly.

    We should all know on July 1 or very shortly after.
     
  12. puckhead103*

    puckhead103* Guest

  13. AdmiralPred

    AdmiralPred Registered User

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    What???
     
  14. Alpine

    Alpine Registered User

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    Only as a fan I ask this...What was the mean or average team salaries before the lock-out and what will it be next year?
    I have a sinking feeling about losing a year and what was gained by cost certainty and a floor and top end cap. 44-45 MILLION $$$ sounds like alot to one of us. Maybe NHLPA won more outta this CBA with free agency and team salary floors then orginally given credit.
    I'm just starting to wonder what the lock-out accomplished, that's all?
     
  15. Brent Burns Beard

    Brent Burns Beard DontTouchMyDonskoi!

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    it put more money in the pockets of teams like NYR, CGY, TOR and BOS.

    it gave the owners linkage, so even though the cap is 44m, if every team spent that much, the players would owe the owners money.

    ya, so the more the owners offer for the services of another human being, the less they actually have to pay. seems fair.

    it also DID NOT result in lower ticket prices, must be because the players make too much that the teams still charge $8.50 for a beer and $20.00 to park? oh wait, the players make less, so I guess Bettman kinda skewed the truth a bit to earn the fan support. na, couldnt be that most of the fans are sheep whose blind jealousy of athletes salaries didnt allow them to see the lockout served the purpose of making the uber wealthy even more wealthy while robbing the fans of the NHL for an entire season.
     
  16. RangerBoy

    RangerBoy TRUST THE PROCESS

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    2006-07 cap is $43.8 million

    http://www.phillyburbs.com/pb-dyn/news/101-06262006-675603.html
     
  17. Art Vandelay

    Art Vandelay Registered User

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    NHL raises salary cap to $44 million

    Confirmed:










     
  18. The Frugal Gourmet

    The Frugal Gourmet Registered User

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    Disagree. I could see it going up even more next season.
     
  19. Captain Ron

    Captain Ron Registered User

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    Just how is that going to happen? The TV revenue will not get better next year. The radio revenue will not go up. Attendance was supposedly at a record high this season. So I don't see a significant increase from gate revenue. I just can't see the league having more than flat to marginal gains from here on out. Don't forget that alot of people were hungry for hockey this year after the long lockout. Now that hockey is back that hunger will not be as intense for the average hockey fan. so it is still very possible that the league will have lower revenues next year.
     
  20. The Frugal Gourmet

    The Frugal Gourmet Registered User

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    Maybe you're right. I guess I assumed attendance would stay roughly the same, but -- as you said -- it could easily just be artificially high because of the lockout.

    I don't really agree that TV and radio revenue, however. I remember reading it was way down from 2003-2004 in many substantial markets and on national broadcasts.

    Even so, though, the NHL made about $2 billion in revenues in 2003-2004 and about $2.1 billion in revenues in 2005-2006. It's unlikely that the salary cap will substantially decline IMO.
     
  21. Bobby Orr

    Bobby Orr Guest

    NHL Revenues:

    2000-01 $1.769 billion
    2001-02 $1.875 billion
    2002-03 $1.996 billion
    2003-04 $2.083 billion

    I don't think there was anything special to cause the increase in revenues in those years. Perhaps a new building or two? At any rate, I'd say the odds are extremely remote (like 1 in a billion) it jumps by 300m like it did this year. It was an estimate after all. 50-100m sounds about right, 1-1.5m increase in the cap.

    There are things the NHL has going for it:

    - positive energy generated from the new product/young players
    - inflation/ticket price increase
    - the Canadian dollar is higher than last year (at least for now)
    - possibility of medium/large markets going deep in the playoffs. It was a small market playoff this year, (3 of the smallest markets in the final 4) so the revenues weren't running at optimal potential
    - I remember hearing about them not being able to get all the advertising in place due to the short turnaround from the strike. I also heard that they will have them all in place this upcoming year
    - a CBA that will cause both players and owners alike to scratch and claw for as much revenue as possible
    - the all-star game is back, and the finals won't drag into the 3rd week of June (some say it causes loss of viewership)
    - Milbury [:propeller] no longer running NYI should cause an increase of 3000% at Nassau. :handclap:
     
  22. X0ssbar

    X0ssbar Guest

    Great analysis.

    I agree that we'll continue to see the cap rise. I don't think it will rise substantially like it did this year but revenues will definitely increase. I think the ad revenue is a great point. The NHL and it teams lost a lot of sponsors during the lockout.

    For example, Bank One (now JPMorgan Chase) was the official banking partner of the Blue Jackets. They contributed 1 million a year to have that distinction. The CBJ lost them during the lockout and picked up Huntington half way through the season. So with them on board for a whole season that is a 500k increase in add sales right there.

    I would imagine there are a lot of those same scenarios throughout the league and its markets.
     
  23. CBJ goalie

    CBJ goalie Registered User

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    So, with the cap floor now set at $28M, this is going to force some teams to spend much more than they thought.
    The first team that comes to mind is the Washington Capitals - weren't they just operating above the last floor of $21M?
    Now they're going to have to spend $7M more?
    I guess they could just add Nick Lidstrom and say "There."
     
  24. Artie

    Artie Registered User

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    Contracts and Cap Hit

    There are all kinds of discussions about Martin St Louis' contract and the cap hit for a team interested in his services.

    Question:

    His contract was front-loaded and the cap hit I believe was in the 5 million per year range for TB. If he gets traded does the new team assume the same cap hit or just the cap hit for the remainder of the contract? (i.e. total left to be paid divided by yrs left on the contract)
     
  25. The Frugal Gourmet

    The Frugal Gourmet Registered User

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    That's really interesting, Bobby Orr. Thanks for that. It really does seem to indicate that the current revenues are just part of a slow growth pattern.
     

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