Kings Article: Concerning NHL financial news, and how it relates to LA’s cap

[Fishhead]

It already uses an average over the year. I know I even said that earlier in this thread. That is why everyone has know it was going to be lower. But the fact the actual dollars spent went up doesn't matter to the cap. The cap is all about AAV. So unless a player is starting a new contract the AAV will be the same as it was last year.

And the league as of earlier this week was still saying 71M. Which wouldn't be a decrease just a small increase.

Hey thanks for that, so it does work that way.

Right now it's 8 cents lower than a year ago, so it's not horrible I guess.

 

[deeshamrock]

It already uses an average over the year. I know I even said that earlier in this thread. That is why everyone has know it was going to be lower. But the fact the actual dollars spent went up doesn't matter to the cap. The cap is all about AAV. So unless a player is starting a new contract the AAV will be the same as it was last year.

And the league as of earlier this week was still saying 71M. Which wouldn't be a decrease just a small increase.

Yes that was the number but the rest of that sentence was that was based upon a 5% escrow elevator, which the NHLPA says will not happen. The NHLPA's number of 68 was based on the 12% escalator they felt the NHLPA would vote for. So even if they mediate to a number in between , at 8.5 or so, that still is just under 70.
That is the reason that Elliot Friedman, after talking to NHL exec's he trusted, felt that the 68 the NHLPA put out would be closer to 70.

 

[tsanuri]

Yes that was the number but the rest of that sentence was that was based upon a 5% escrow elevator, which the NHLPA says will not happen. The NHLPA's number of 68 was based on the 12% escalator they felt the NHLPA would vote for. So even if they mediate to a number in between , at 8.5 or so, that still is just under 70.
That is the reason that Elliot Friedman, after talking to NHL exec's he trusted, felt that the 68 the NHLPA put out would be closer to 70.

I know the players are trying to shrink escrow but the owners are betting on the wording of the CBA. One side can't just do away with it. It must be agreed upon. I agree that there will be a compromise and the cap won't go down as many are thinking. It just won't go up as much as things had been predicted last year before the CDN$ started falling even more.

(Preliminary HRR for the prior League Year multiplied by fifty (50) percent (the
Applicable Percentage), minus [-] Projected Benefits), divided [/] by the number of Clubs
then playing in the NHL (e.g., 30), shall equal [=] the Midpoint of the Payroll Range
(which figure shall be considered the Midpoint only for purposes of calculating the
Adjusted Midpoint; all references to the "Midpoint" thereafter shall mean the "Adjusted
Midpoint"), which shall be adjusted upward by a factor of five (5) percent in each League
Year (yielding the Adjusted Midpoint, which shall then become the Midpoint of the
Payroll Range) unless or until either party to this Agreement proposes a different growth
factor based on actual revenue experience and/or projections, in which case the parties
shall discuss and agree upon a new factor.

 

[Ron*]

I know the players are trying to shrink escrow but the owners are betting on the wording of the CBA. One side can't just do away with it. It must be agreed upon. I agree that there will be a compromise and the cap won't go down as many are thinking. It just won't go up as much as things had been predicted last year before the CDN$ started falling even more.

(Preliminary HRR for the prior League Year multiplied by fifty (50) percent (the
Applicable Percentage), minus [-] Projected Benefits), divided [/] by the number of Clubs
then playing in the NHL (e.g., 30), shall equal [=] the Midpoint of the Payroll Range
(which figure shall be considered the Midpoint only for purposes of calculating the
Adjusted Midpoint; all references to the "Midpoint" thereafter shall mean the "Adjusted
Midpoint"), which shall be adjusted upward by a factor of five (5) percent in each League
Year (yielding the Adjusted Midpoint, which shall then become the Midpoint of the
Payroll Range) unless or until either party to this Agreement proposes a different growth
factor based on actual revenue experience and/or projections, in which case the parties
shall discuss and agree upon a new factor.

LOL have to be an actuary to demystify the italic language. Seriously.

I would just defer to tsanuri for interpretation. Dude seems to know what he is talking about.

 

[tsanuri]

LOL have to be an actuary to demystify the italic language. Seriously.

I would just defer to tsanuri for interpretation. Dude seems to know what he is talking about.

LOL there is plenty of lawyer speak in that paragraph for sure. But it's not what I am saying it is what the league is saying and they are using that paragraph to say it can't be a one sided choice. Both parties must agree or it's 5%.