hockeytown9321
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- Jun 18, 2004
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We know the cap number itself is arbitrary, since 54% of the projected $1.8B revenue works out to about $32M per team, but has there been any word on exactly how that number is determined?
hockeytown9321 said:We know the cap number itself is arbitrary, since 54% of the projected $1.8B revenue works out to about $32M per team, but has there been any word on exactly how that number is determined?
hockeytown9321 said:We know the cap number itself is arbitrary, since 54% of the projected $1.8B revenue works out to about $32M per team, but has there been any word on exactly how that number is determined?
That's an interesting take, and one that makes a ton of sense for both sides in this mess.NotJT said:Here is the formula that seems to explain everything:
LR=League revenue for the previous season
NP=Negotiated percentage of league revenue the players get (as a decimal)
.54 for revenue below 2.2billion
.55 for revenue between 2.2-2.39 billion
.56 2.4 billion to 2.69 billion
.57 2.7+
GAP=Negotiated gap between floor and ceiling
17.5 million this season
16 million for next year (and beyond?)
((LR * NP)/30)+/- (GAP/2)
If the NHL gets to 2.2 billion in revenues (pre-lockout) the floor-cap would be 32.3-48.3, 2.4 billion 36.8-52.8, 2.7 billion 43.3-59.3 million
Kritter471 said:That's an interesting take, and one that makes a ton of sense for both sides in this mess.
Here's another formula that seems to make sense, at least with the numbers. 54 percent of $1.7 billion is $30.8 million per team. Much like the players put 15 percent in escrow, the owners allow for a 15 fudge if it's high. 15 percent of $1.7 billion is $8.5 million a team, leaving a "high cap" of $39.3 million, right around what's been reported at next years cap.
Under this system of math, the floor/cap at $2.2 billion would be $51.33 million - $35.33 million.
It'll be really interesting to see what the formula is when this comes out.