After the CBA and new American TV deal, will the cap go up substantially ? Estimates ?

[HamiltonNHL]

Thanks for the suggestion. I had searched and read various articles on this subject a few times before, but did not come across the Forbes article.

The English Premier League deal doubled the money being paid to the league (the previous deal was 3 years, the new one was 6 years, so that needs to be factored into the calculation). The new NBA deal was 186% larger than the previous one. MLB had a much more modest increase in their new contract, around 25%.

I have no idea if the NBA would be a good indicator or a good comparison to the NHL. Still, even if the NHL's new deal were double the existing one, that would be very good for the NHL.

NBA and premier league doubling would be good predictor of canadian hockey and MLB would be a good predictor of NHL in USA

 

[supermann_98]

The cap would go up for everyone so I don't know why this would be some advantage for us specifically. Tampa and Boston will spend to the cap, so any increase is also giving them more room. No matter how much the cap goes up, any overpayment is still giving you less flexibility.

To salary floor would go up too, forcing teams like the Coyotes to spend the money on player salaries instead of pocketing the money or using it to clear debt

 

[Mess]

The cap would go up for everyone so I don't know why this would be some advantage for us specifically. Tampa and Boston will spend to the cap, so any increase is also giving them more room. No matter how much the cap goes up, any overpayment is still giving you less flexibility.

Agreed

The Salary Cap is designed to create parity in the league and so any increase is the Cap ceiling & floor impact all teams equally, all it does is make some of the internal numbers bigger.

 

[pucksakes666]

I'll never forward to when the gambling comes in is full disclosure of injuries. No more hearing upper or lower body anymore.

 

[HoweHullOrr]

Perhaps it becomes part of an NHL Center ice package? If they can increase the number to subscribers for this package .......

Any thoughts?

Yes- one thought or point of reflection - the 2nd largest cable service provider in the U.S. doesn't even provide NHL Center Ice.

They must have some reason for that you'd think. And, I would think they've had many years to think and rethink their decision not to do so.

 

[HoweHullOrr]

Agreed

The Salary Cap is designed to create parity in the league and so any increase is the Cap ceiling & floor impact all teams equally, all it does is make some of the internal numbers bigger.

I'm not sure if that is the case when most of the revenue an NHL team makes is from season tickets. The cap could go up by a certain amount without that increase being mirrored (duplicated) by ticket sales.

Average team NHL operating income (closest metric to profit) remained the same for three years after the last CBA even though the salary cap was going up each year during that timeframe. It jumped when VGK entered the league, but VGK had the 5th highest operating income of all NHL teams. Let's remember that VGK went to the Cup finals that year and might be considered a cinderella type story.

For the 2017-18 season, Enterprise value-weighted average 1-year change was 6% (higher). That's a number that an owner of a team would probably be very interested in. But its worth noting that happened in 1 year out of 5 years (since the new CBA went in to effect).

 

[HoweHullOrr]

NBA and premier league doubling would be good predictor of canadian hockey and MLB would be a good predictor of NHL in USA

You may be right about that. Given the situation involved is a contract with a U.S. broadcaster (26 of 32 teams are in U.S.), that would mean about a $50 million increase, and divide that number by 32 to calculate the increase per team.

Its an interesting topic where there are some things that suggest a huge increase, while other info suggests (past & current state of affairs) much more modest increases. It will be interesting to see what happens in the end.