NHLPA executive director Don Fehr told agents in a series of meetings last week that next year’s cap would be approximately $68.2 million if the union does not trigger the 5-percent escalator, attendees report. That would represent a decrease from the current $69 million that would cripple successful big market teams.
It probably is no better than a 50/50 proposition at this point that the players will vote to approve the bump, and it may tilt the other way if playoff revenue takes a hit because of the inclusion of small-market, comparatively small-gate franchises like Winnipeg, Nashville, Calgary, the Islanders and perhaps Ottawa.
Remember, the lower the playoff revenue, the higher the escrow hit becomes for these athletes, who this season stand to lose up to 15 percent of the face-value of their contracts.
The CBA is ambiguous on the escalator issue. It appears as if the NHL and NHLPA could agree on a smaller increase, but it is unclear whether the league unilaterally could trigger the 5-percent bump absent a negotiated agreement. There is the possibility the matter could go to arbitration.
Regardless, the currency issue, which simply was not addressed in any manner during any of the three owners’ lockouts, is going to have a major impact on a significant number of teams this summer and into next season.
