But the NHLPA doesn't use the same % every year.... some years they use quite a bit, some years they use none... right??
Maybe I don't have a full grasp on it, but doesn't the escaltor allow for an increased cap if the NHL doesn't increase their profits from a season...? Doesn't the escalator give the NHLPA flexibility to increase the cap IF they wanted to? I'm pretty sure thats what has been done over the 3 or 4 of the last 5 years...
The PA has been using 5% almost every year up until the past few The NHL has increased their revenue every season.
Where the confusion comes from is when you see reports “the cap will decrease if the PA doesn’t use the escaltor”. What that means is year over year NHL revenue growth was less then 5% (or whatever the prior years escaltor was). Simple example**:
Year 1:
- NHL revenue is $2B
Year 2:
- The NHL sets the default cap at $50m based on the previous season revenue of $2B
- The PA has the option to use the escaltor.
— 0% means a cap of $50m
— 5% means a cap of $52.5m
- at the end of Year 2 they determine revenue grew by 4% to $2.08B
Year 3:
- The NHL sets the default cap at $52m based on the previous season revenue of $2.08B
- The PA has the option to use the escaltor
— 0% means the cap is $52m (a “drop” from the prior year’s $52.5m if the PA had used the 5% escaltor)
— 5% means the cap is $54.6m
Note revenue actually grew from year 1 to year 2. The perceived reason for a drop is due to the escaltor itself being used the prior year to inflate that year’s cap.
**This example is not using the exact cap formulas. It’s a highly simplified version to illustrate how the escaltor works.