Speculation: 90% of the league's cap dollars already spent and teams trying to shed salary

[Karl Eriksson]

Next year's UFA class will both be amazing and cheap. As a fan of a team who's entire top line will be UFAs, this could be the best potential outcome

shows the value of term. The world is uncertain. Having less contracts over your career caps upside risk but also puts a floor on the downside.

 

[AveryStar4Eva]

IMO the most interesting thing is what teams like Tampa and the Islanders do now...
Who is going to take on guys like TyJo or Killorn when you can get better players on 1 year deals for cheaper or atleast similar or slightly worse players for significantly cheaper?
I'd probably ask for 2 1sts from Tampa now if they want to dump a contract like TyJo on my team (not to mention that NTCs are in play here as well making things far more difficult)..

Nobody will do it but there really has never been a better time for offersheets...

I would love to see an offer sheet right about now. I’m starting to feel like one of the Tampa guys might take a Lebanc like contract just so they have a spot to play this season. Teams are going to get creative and I agree about Killorn/Johnson. I’m not even considering taking an older guy with a longer contract right now even though both are solid players

 

[VoidCreature]

Should get rid of the cap as we know it. Adopt a more revenue sharing model than is already in place.

If a team cant succeed in its city- then you lose the team.

To be honest- from a team with no financial difficulty-its frustrating to have to be bogged down because of low revenue teams like Arizona, New Jersey, Florida etc.

Teams should be able to outspend the cap by 25% if they wish and just allocate more to the revenue sharing program.

If this isnt viable then id rather they fold those franchises and relocate.

This cap thing has become ridiculous.

NJ’s franchise value is middle of the pack. We’re nearly worth what Arizona and Florida are put together. Don’t lump us in with them.

 

[Golden_Jet]

Just give one buyout a year to every teams. f*** these millionaires whining babies and be more like the NFL.

You mean they should have non guaranteed contracts.

 

[violaswallet]

Should get rid of the cap as we know it. Adopt a more revenue sharing model than is already in place.

If a team cant succeed in its city- then you lose the team.

To be honest- from a team with no financial difficulty-its frustrating to have to be bogged down because of low revenue teams like Arizona, New Jersey, Florida etc.

Teams should be able to outspend the cap by 25% if they wish and just allocate more to the revenue sharing program.

If this isnt viable then id rather they fold those franchises and relocate.

This cap thing has become ridiculous.

Florida has owners that spend to the cap? NJD has had owners who spent money to win 3 Stanley Cups?

The issue right now is Covid: nothing else and nothing more. We wouldn’t have this conversation otherwise.

 

[CarolinaBlueJacket]

when is the league going to realize its UFA system is backwards and that giving a player past his peak a contract based on what he earned with his previous team is a horrible business model

Agree 100%. If you think of players as stocks, but a stock that you KNOW will decrease in value over time, then why not buy the stock at the lower price (ELC and some RFA contracts), sell it at a higher price (trade a player approaching UFA who has a high value). Get as many assets as possible back for the soon to be UFA and repeat. The league is getting younger and faster, the GMs that adapt the fastest will be the most successful. There are very few exceptions, Ovi comes to mind, but that is very, very rare.

A young player may improve or may stagnate, but at least there is not much invested in him. If you sign Bob (my favorite example as a CBJ fan) to 7 years for $10M and he does not perform, then that is a major problem for years to come and it removes all of your flexibility.

Its one reason I like the Domi deal. You know that Domi is in his prime and he will give it his all for the next 2 years to cash in as a UFA. I expect there will be a performance drop off after his UFA deal is signed and it will be for more $ and term. I think the smart GMs will realize this and stop paying top dollar for guys on the downside of their career. Another example if Lundqvist going from $8.5M to $1.5M. There is no way he is 6 times less effective than he was last year. The $8.5M is an over payment based on his previous performance. The $1.5M is based on current performance.

 

[StreetHawk]

Teams with cap space can get solid depth players a few weeks from now for almost nothing.

Let’s look at the math here.
$81.5 mill cap for 31 teams is $2.526 billion.
10% of that is $252 mill. Seems like a lot on the surface but teams still need to sign RFA like Barzal, Mantha, Bertuzzi, Pulock, the guys who went to arbitration, etc.

so the remaining number for the ufa class is likely down to half of that at most and maybe even under $100 mill.

plus there are teams that have no interest in spending their cap space.

 

[Golden_Jet]

Cap dollars are 2.5 billion among 31 teams.

There is still 252 million in cap. Yes teams have no budget, but there is cap available.

This is not really a story.

The cap is based on the midpoint, not all 31 teams spending to the max.

 

[StreetHawk]

The NHLPA should’ve pushed for compliance buyouts in Return to Play negotiations. They had to have known what the financial ramifications of COVID would be and its effects on salaries/contracts.

I bet we start to see GMs go for “unofficial” buyouts now, where they waive guys to the AHL then suspend and terminate them when they don’t report. Watch the PA then file grievances to try and recoup the money owed to a bunch of pissed off members. It could get messy fast.

I don’t get the sense that among the owners there was interest in doing that because that would come out of their portion of HRR not the players.

Now if the PA were prepared to give the owners a break on the buyouts from 2/3 to a more manageable percentage then maybe that would have been something for owners to consider.

but don’t think that was going to happen.

 

[A1LeafNation]

The cap is based on the midpoint, not all 31 teams spending to the max.

I covered that.

 

[tenken00]

when is the league going to realize its UFA system is backwards and that giving a player past his peak a contract based on what he earned with his previous team is a horrible business model

How is that really different from other professional sports or even the normal job market. Lots of people slack after they get paid/promoted.

 

[DudeWhereIsMakar]

Like in EA NHL where players would have $10,000,000 asking price and would still be free agents in be a GM mode. Only because you can't afford them.

 

[Djp]

Look at the number of teams who will be over the cap after signing good RFAs to fair contracts and fill rosters with min/ELC contracts. Half the league st least.

 

[CarolinaBlueJacket]

How is that really different from other professional sports or even the normal job market. Lots of people slack after they get paid/promoted.

For me the difference is that its not just a matter of slacking off. Its that you know that a player's production is going to decrease based solely on age. That is not true with normal jobs.

 

[Leafs87]

When does panic set in?

6 months ago.

I truly wonder if we actually see an nhl season this year. If we do, it may be none profitable.

 

[DFF]

Melnyk is a genius. Knew rona was coming and got the payroll lean in advance.

Only if he is doing something with it

 

[MakeCgyGreatAgain]

Well the average Joe got hit hard. Lots of us lost our jobs and are struggling to make ends meet. So who cares about these athletes who play a game for a living. They depend on their money from all of us. So when we hurt then obviously it will affect them too. Hopefully this will be a reminder to these owners, players, NHL executives that they need us more than we need them.

 

[BernieParent]

Columbus has tons of space. You could be jealous if you want

Is there an internal cap below the official cap ceiling?

 

[tenken00]

For me the difference is that its not just a matter of slacking off. Its that you know that a player's production is going to decrease based solely on age. That is not true with normal jobs.

What are you talking about? With age? There are definitely older people who don't do put the same intensity into their work that they did when they were younger. We aren't talking about machinery or software or "stocks" here. We are talking about people.

It sounds less like a problem with the UFA system and more a problem with humanity.

 

[CarolinaBlueJacket]

What are you talking about? With age? There are definitely older people who don't do put the same intensity into their work that they did when they were younger. We aren't talking about machinery or software or "stocks" here. We are talking about people.

It sounds less like a problem with the UFA system and more a problem with humanity.

Do you really think that the drop off of a pro athlete and an office worker are the same with age? Not even close.

Edit: I can honestly say that I work way harder in my 40s then I did in my 20s and my knowledge is 20x more now than it was then.

 

[wetcoast]

I wonder if some good players simply won't be offered contracts.

More like this.

Teams with cap space can get solid depth players a few weeks from now for almost nothing.

Some players will end up retiring or doing the Jason Williams thing, coming back for the stretch drive and missing the grind of the regular season.

 

[ElLeetch]

Go lower.

you want the owners to keep more of the money?

 

[tenken00]

Do you really think that the drop off of a pro athlete and an office worker are the same with age? Not even close.

Edit: I can honestly say that I work way harder in my 40s then I did in my 20s and my knowledge is 20x more now than it was then.

But what about when you are 50 or 60?

 

[CarolinaBlueJacket]

But what about when you are 50 or 60?

I dont know. I am not there yet, but I will let you know in 20 years.

 

[Price4Prez]

Florida has owners that spend to the cap? NJD has had owners who spent money to win 3 Stanley Cups?

The issue right now is Covid: nothing else and nothing more. We wouldn’t have this conversation otherwise.

That is the problem though. The leagues system is vulnerable. Do you see any of the other leagues having issues?

The NHL already has the least revenue amongst major leagues. It should adapt its system in consequence.

Something like this bs "pandemic" has essentially financially crippled half the teams in the league.

If the bottom was strong- this wouldnt be an issue. We wouldnt need a cap and we wouldnt have internal caps.

Floridas ownership makes no revenue from the team. Attendance is the poorest in the league and the only reason he keeps the team is to probably offset gains with NHL losses.

Same in Newark. Attendance blows and while they may not be as bad- they surely arent helping the leagues situation.

You dont punish the viable teams in the league and hamper them financially to keep a few shit teams afloat.