Epsilon said:
Here's a funny idea: what if teams were allowed to trade/sell salary cap space like a commodity? So if a team wants to blow up and rebuild, they have the choice of either signing players they don't really want to get themselves up to the minimum, or letting other teams compete to acquire that cap space which they can then use for their own rosters.
Carbon credits cap tax equivalent. I think that is a very interesting idea. You'd need a minimum price $1 fee to buy $1 of cap space.
ie Nashville could sell $10m in cap space to Detroit for $10m. Nasville makes $10m in money, Detroit can then spend an extra $10m on salary ($20m total expense, $10m for cap transfer AND $10m for salary). Works like a $1 for $1 luxury tax.
That $1:$1 fee could go up if there is shortage and teams are forced into a bidding war for it (a team might be able to get $1.50 or $2). Fairer at $1 for $1 so the rich teams can't outbid the poorer ones.
I think a maximum should set to stop teams over purchasing (no more than $10-15m per team in a given year).
Not sure how teams would arrange deals, probably through a centralised market rather than team to team. All sellers would pool cap space and buying teams would submit bids on the pool. Teams are paid out on their percentage of the pool.
Maximum that can be sold in a year should be set around $10-15m. Make it the opposite of the what can be bought in a year.
Its interesting. Wonder what happens when the teams at the bottom decide to grow during one year and there is less cap space. Then they run out before all buyers get their bit then the buyers run into cap problem ($2:1 luxury tax on credits not purchased).
The Pengiuns could be picking up $15m/y with their payroll and squirelling it away for later.
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It keeps the NHLs desire for 54% of revenues to go to players roughly intact.
Keeps salaries around $1.3m average
Allows teams to expand when successful (but not too much) and contract when not.
Gives money to the lesser teams. Because the bigger spenders are actually buying something it isn't charity case revenue sharing.
Quick somebody send it to the Knob & Fairy show.