Around Hockey and the NHL

[mouser]

I have some questions that I'm not sure I even understand how to phrase...

Prior to 2019-20, but post new CBA, there was a regular (annual?) issue of the players angry about how much they were putting in to escrow each year. Was that amount they put in then also making up a deficit in the HRR? If so, how was the cap continually climbing then? What was the players gripe about escrow pre-Covid?

The fundamental problem was that the CBA negotiated cap formula was set too high. The formula was based on an assumption that collectively the teams would spend right around the midpoint of the salary cap range, halfway between the floor and ceiling. In practice the teams collectively spent much closer to the cap ceiling. With many teams spending above the cap ceiling via the use of LTIR. This meant that the players were being paid more then 50% of HRR. This overage was then clawed back via Escrow.

This was addressed in the 2020 CBA so that the cap formula is dialed back a little, with the objective being to eliminate Escrow. However COVID hit and the 2019-20 Escrow wasn't enough to cover the overage. Then the players negotiated that they would receive 78% of their salaries in 2020-21 regardless of how much HRR the league generated. This further increased the Escrow Balance to where we are today, guaranteeing years of essentially a flat cap until the balance is paid off.

Does the new TV deal and/or expansion team factor in to HRR or bridging the escrow gap? Or is that all just money for the league/teams? How much non-HRR do owners/teams generate outside of selling their team?

The new TV deal will increase HRR, and thus shorten the amount of time it takes for the Escrow Balance to be paid back. The new Expansion team's revenue will be included in HRR, but they're also adding a full new roster of players to the league. So unless the Seattle team revenue is significantly above average they probably won't make difference in the Escrow Balance payback time--I doubt they'll be significantly above average.

Teams themselves generate little to no revenue that isn't considered HRR (Hockey Related Revenue). Owners may generate all sorts of revenue from other non-hockey businesses. Or even semi-rated businesses, such as True North Sports & Entertainment which owns the Winnipeg Jets as well as the arena they play in. Any Jets related events at the arena are HRR, any non-Jets events such as concerts is revenue the owners pocket but not HRR.

Assuming it's mostly business as usual moving forward, it would seem self destructive to limit the leagues growth for too long. It feels like at some point growth itself will bridge the gap more than any amount of their salaries the players pay in to escrow.

The Salary Cap doesn't limit or define the league's growth. Revenue defines the league's growth. What they're going to do is have the salary cap grow at a slower rate then revenue grows until the Escrow Balance is paid off.

The salary cap could be half the amount it is today and the NHL still wouldn't be competing for players. There's no other league that pays salaries on the level the NHL does. Even the KHL only pays their top few players salaries close to the NHL, everyone else on those teams is making less then they would in the NHL.

 

[LightningStrikes]

 

[These Are The Days]

lmao

 

[Felonious Python]

lmao

I know I'll cry during their video tribute.

 

[gn2007]

Bill Foley is never to be trusted for any organization....YIKES.

 

[BoltzManConstant]

There was a return. A minor leaguer named Mikael Hakkarainen.

Chicago basically sewered him. Being known as the only return on Vezina winner MAF to the Vegas Golden Knights is going to follow him.

Nah.

 

[gn2007]

THE HOLLAND SPECIAL.

 

[JoVel]

THE HOLLAND SPECIAL.

Why did Oilers fans think they'd get a good GM in Holland? It's not like a guy who has sucked for years will suddenly become good with a change of scenery.

 

[TheDaysOf 04]

 

[berlin]

Man I thought the Coleman contract was bad (and it is) but Chicago signing Jones at 9.5 for 8 years!

 

[DMB06]

Hamilton signing with NJ for 9m AAV is just absurd. 1.125m more than Hedman.

 

[DaBolts]

Hamilton signing with NJ for 9m AAV is just absurd. 1.125m more than Hedman.

We skated around him against Carolina.

So we'll skate faster around him in New Jersey because his wallet weighs more.

 

[TheDaysOf 04]

More from Geoff Molson, owner of the Habs, who met with the media today:

"Our decision to draft Logan was a very offensive one to so many of our fans and so many people across communities , especially in the hockey community, and on behalf of the Montreal Canadiens, I just wanted to apologize to all."

"It was an error in judgement. If I had known the repercussions to the greater community, beyond just the Montreal Canadiens and our fans, I probably would have, I wasn't at the draft table, but I probably would have avoided that situation."

"This is exactly where I take full responsibility for a lack of judgement on my part."

"Shame on me for not taking into consideration the number of people that I impacted by not thinking beyond the fact that a second chance is a good thing... but shame on me for not taking into account the victim, and shame on me for not taking into account who it would impact with that that decision."

"I have no doubt we've disappointed a lot of our fans, but I also have no doubt we've disappointed a lot of people who maybe aren't our fans who have been impacted by this kind of thing. This is where the Montreal Canadiens should be better."

Yikes. I don't know how they could be this stupid. If they want to bite the bullet on this player, go ahead, but know what you're getting into. Have a plan, figure out how you'll explain the pick and handle it. Be prepared. From Bergevin to Molson, this screams ignorance and incompetence. They're drowning right now and no one's going to throw them a life preserver.

 

[DaBolts]

And now Francis trades Vanacek back to the Caps. Francis is on crack or something. This is hilarious. Can we get Gourde back for Sustr with $4 million retained?

Vanecek traded to Capitals by Kraken

 

[dechire]

I was mad about the Mailloux draft pick(and I still am) but I think it could potentially be a good thing for the league. The Canadiens management thought it would be a minor PR ding against them and then they could go about business as usual and instead it blew up into a huge issue. I hope this sends a message to every team in the league that this sort of thing will no longer be accepted by fans in the future. But I can't imagine how his victim is feeling now especially when the trauma itself is still pretty recent. I hope the team is serious about making sure that she's protected and supported. But Molson's statement is mostly "We underestimated how much people care about this which was a mistake" which doesn't really fill me with confidence that he understands the issues at play here. I'm sure they talked to a bunch of PR people before making the pick but never to any actual advocacy groups or victims.

 

[Peacefool]

And now Francis trades Vanacek back to the Caps. Francis is on crack or something. This is hilarious. Can we get Gourde back for Sustr with $4 million retained?

Vanecek traded to Capitals by Kraken

Is it legal? I read some posts where ppl were saying that its not allowed to øose player on exp draft,and then get him back via trade?

 

[Bozo Nicholson]

DeAngelo agrees to one-year contract with Hurricanes

lol, this bozo

 

[The Macho King]

Is it legal? I read some posts where ppl were saying that its not allowed to øose player on exp draft,and then get him back via trade?

I thought it was more "take this player, have Seattle buy him out, then sign him for less" that was banned.

 

[Hoek]

I thought it was more "take this player, have Seattle buy him out, then sign him for less" that was banned.

That and trading back with retention.

 

[SRQKiter]

Hamilton signing with NJ for 9m AAV is just absurd. 1.125m more than Hedman.

Even forgetting about the tax angle (NJ 3rd highest in country), he'll have to live in NJ.

I laugh when I hear people say, "there are some nice parts of NJ". That's true, there are, you just can't get to them. No matter where you are in NJ, if you're trying to get to another part of NJ, or anywhere else for that matter, it is going to be a nightmare.

 

[TheSchmidt]

So the Isles shedded the Eberle, Ladd, and Leddy contracts and have done jack shit yet. I’m sure they’ll bring some of their UFA back, but they need more actual top end talent.

Tarasenko is really the only guy left who fits that bill if he can bounce back.

 

[Stormbreaker]

Tom Wilson really broke the Rangers. Sad.

 

[Stormbreaker]

 

[Steazy Doo]

My god

 

[TheDaysOf 04]

Tom Wilson really broke the Rangers. Sad.

Blais, Tinordi, Goodrow, Reaves

Drury making sure that the Rangers never get embarrassed like that again at MSG