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

[DearDiary]

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.

Individuals own teams, imagine thinking you can shut down a business someone paid hundreds of millions for and say we're going to fold and relocate it. This is a Capitalistic society, not Communist.

 

[RainingRats]

If Covid forces a team who cant draw flies on shit like Florida to relocate or go away or Arizona to do the same, good.

Fact is... Florida and Arizona are in huge trouble. Huge. Panthers and Yotes won't survive much longer. Some talk that Arizona is basically on life support right now.

Florida has a super rich owner who has prob gotten richer since the start of the year. No money problems in Florida. spending to the cap too.

 

[seanlinden]

I'm perfectly fine with that... as long as that's what the PLAYERS AND MANAGEMENT also agree to. Just keep it a free market supply and demand business across the board.

But to be "free market supply and demand" for tickets but create a socialized cba... that's what I'm calling bullshit on. It's not fair to the fans.

But yes, otherwise I fully agree. The nhl is a business and doesn't give the slightest of shits about being fair to the fans.

So what seems to be happening here is that you point out what the reality is. I counter that the reality is unfair to fans of large market teams. Then you respond by simply pointing out what reality is again. Please understand that you don't need to keep pointing out how it really works. I know how it really works. I'm criticizing how it really works.

That doesn't work for the overall health of the league.

"Fairness" has no place in business.

 

[Throw More Waffles]

That doesn't work for the overall health of the league.

"Fairness" has no place in business.

Precisely. And the group that this is most unfair to is the specific cash cow of the league. I wonder when exactly they'll run out of milk. It will happen eventually under such an unfair system...

The funny thing here is that it seems you agree with me overall. The league is exploiting large market fans. People paying outrageous prices for tickets to subsidize the "poor" teams that challenge them at an even playing field. It's a system that's doomed to fail.

 

[yukoner88]

True. Weird that this hasn't been up for debate... if there ever was a need for it in the history of this sport we all know and love, it'd been now.

This was talked about in the spring during the lockdown. The reason players and teams didn't really consider it was cause it would throw 50/50 revenue split out of whack, and it could cause actual cash flow problems for a lot of teams since they have no gate revenue coming anytime soon, while still paying put bonuses n salaries etc

 

[Alexander the Gr8]

Even before COVID, you had to look at some of the contracts that were handed out since the previous lockout and see the ramifications of it a few years down the line.

So many teams are spending close to the cap, and GMs were handing out contracts as if the cap was always going to rise by a few millions every year, as if the league's revenue was always going to go up no matter what. They've inflated the market by handing out tons of bad contracts that needed to be bought out later

This was done while a few teams such as Arizona were operating at a loss due to poor attendance, low ticket prices and generally having trouble being competitive in a market that could care less about hockey and would rather spend their money on other more popular sports.

Now, so many teams are looking to unload their boat anchors, but there is nowhere to dump the contracts, and they still have roster spots to fill.

I'm particularly curious to see what VGK and TBL will do regarding Pietrangelo and Johnson. They will probably get bent over in a trade for prized future assets in a desperate attempt to be under the cap and have enough money to sign whoever needs to be signed next year.

Any team could come in and convince them to part with their draft picks in order to get them out of cap hell. This looks like it could be a very quick way to rebuild for a team with cap space to spare right now.

 

[seanlinden]

Precisely. And the group that this is most unfair to is the specific cash cow of the league. I wonder when exactly they'll run out of milk. It will happen eventually under such an unfair system...

The funny thing here is that it seems you agree with me overall. The league is exploiting large market fans. People paying outrageous prices for tickets to subsidize the "poor" teams that challenge them at an even playing field. It's a system that's doomed to fail.

Not sure why you think that.

Hockey (at a professional level) is entertainment. As long as they put an entertaining product on the ice, they'll be just fine.

Even through COVID, something that directly hits one of the NHL's main revenue streams, the league is healthy enough to weather/survive the storm.

Without a cap -- this would be an even more gate driven league, and maybe it doesn't survive the pandemic.

 

[Olliemets]

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

Bet on it. Some guys are not going to have seats at the table when the music stops. Look at the haircuts established players who are free agents are getting. What happens when teams have to shed more salary at the 11th hour when (if) season actually starts? Ugly situation.

 

[glenbuis]

What does parity have to do with it? Do we talk about parity in other leagues?

Life isnt like that. Theres people and businesses that make more then others and live better. Should someone who makes more have to live the same as someone who makes less? Whats the point of working harder and being successful if u have to live like a peasant while making top dollar.

And if you realllllly want to push the parity bs...then just make the parity at higher level. The main point is being dragged down by low tier teams. Strenghten the bottom and raise the level of parity to a higher point. Bigger cap. If u cant follow-put the team in a city that can. Simple.

Its a sport and a business, not a freaking charity case.

Just got back . You know what really sucks about baseball now Forget about the jays ever competing again . When the Yankees starting pitching rotation is more than some teams spend on an entire roster that is brutal . Yes parity is nice . The year the blues won they were last In their division at Xmas Time . I think it’s great that any team when they get in the playoffs have a chance . Just because some gms don’t know how to use a calculator, why will we let the New York’s Toronto’s las Chicago Detroit’s just be able to buy up the best players

 

[Anthony5967]

As long as the teams play next year in a bubble where the mere peasants can't enter the arena, it'll only get worse, unfortunately.

 

[2020 Cup Champions]

As long as the teams play next year in a bubble where the mere peasants can't enter the arena, it'll only get worse, unfortunately.

If history's any indicator, some Rangers fans will still end up killing the game or however you say things up there.

 

[glenbuis]

Yup. Many teams are going to financially struggle for years because of covid and a few teams will be on the brink or have to relocate. A luxury tax to get all those extra millions of dollars to the small market teams every year could make the difference in a city losing their team. The hard cap will kill teams going forward but a luxury tax would save them.....

Yes and you may as well come up with a Henry cup for the small market teams to play for because they’ll never be in contention for the Stanley cup . It’ll be the same rich teams over and over again every year . Screw that .

 

[glenbuis]

A luxury tax? If the numbers are true a team like Nashville lost 11 million and has 47 million in gate receipts meaning a half full arena with the same players and personnel would lose 34 million. An empty rink with no changes would lose 58 million.
A luxury tax would maybe get 1 million to the poor teams the losses they are looking at is a nightmare.
A team like the sharks made ten million but they have 73 million in ticket sales on the line

Wait till Nashville calculates Weber’s salary cap recapture fees in in a couple years time .

 

[Anthony5967]

If history's any indicator, some Rangers fans will still end up killing the game or however you say things up there.

If you mean the NYR being fiscally okay, I agree lol

 

[LeHab]

Should've given teams compliance buyouts.

No, current way is way more entertaining.

 

[2020 Cup Champions]

If you mean the NYR being fiscally okay, I agree lol

There will always be a place for these guys

 

[Colt55]

5 teams? The vast majority of teams are gonna be right at the cap. If ~25-28 of your teams are at the cap, that means the cap is too low.

But ypu are saying no cap and very few teams make enough money to not have a cap at all. Allowing teams like toronto Montreal Rangers Vegas and a few more to just overypay the best players and stack thier teams. Is that fair nope

 

[Clark4Ever]

It getting to the point whereby the NHL and NHLPA may have to come to terms to implement some type of emergency compliance buyout provision. This is getting out of hand, and at this rate, there are going to be many quality UFAs on the outside looking in by opening night.

 

[Yog S'loth]

Everybody knew the rules of the game when they started playing.

Too late to complain now.

 

[MarkovsKnee]

Should've given teams compliance buyouts.

They really should have. One compliance buyout per team. It's crazy they didn't.

 

[BruinsBtn]

They really should have. One compliance buyout per team. It's crazy they didn't.

Why would the owners agree to paying out extra money? Or do you think the players would agree to canceling a contract?

 

[MarkovsKnee]

Why would the owners agree to paying out extra money? Or do you think the players would agree to canceling a contract?

It's not like they haven't had it before.