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

[HeadInjury]

No, it doesn't. Right now they have 65M spent on 17 players. 4M to get the rest signed. CAP is expected/projected 68 - 70M

It's a problem...Toffoli, Sekera, Jones nad SHore are the 4 that have to get signed, McBain and Andy Andy won't.

But DL needs at least, being very conserative, about 11 M to get those 4 done, if not more.

Actually, we've spent $64.1 million on 17 players.

The cap is not projected to be $68 million. That's worst-case scenario guesswork. That number was floated around when the Canadian dollar fell to 79 cents on the dollar. Today it's at 82.4 cents. Big difference.

We should have at least $5-6 million. That's enough to get Toffoli, Shore, Jones, Andreoff (or another minimum player) and someone like McBain signed. And that doesn't require buying out Richards. If DL trades or buys him out, he has more room. If he's decided to move Voynov if re-instated, he has even more room.

My point was just that there's no reason for the League to bail out teams like us by giving us another compliance buyout. There should be consequences for not managing your cap. We'll have no problem filling out a roster. It just won't be an ideal roster. That's the way it goes.

 

[Basilisk]

I could see bringing back Williams on a 1-year deal for $2 million, but that's it. He was an integral part of our two Cup runs. If the guy wants one more shot at the Cup with us, I'd say he's earned it. But not for more than $2 million a year.......

 

[Captain Mittens*]

I could see bringing back Williams on a 1-year deal for $2 million, but that's it. He was an integral part of our two Cup runs. If the guy wants one more shot at the Cup with us, I'd say he's earned it. But not for more than $2 million a year.......

this is strictly based on the rumors out there but rumor is that Williams is looking to get paid with a capital P and sign a five-year deal

 

[KingsFan7824]

You can't expect a guy that has 3 Cups to take a discount when he's already going to be 34 when the season starts, his most famous nickname is Mr. Game 7, and a Conn Smythe is still somewhat fresh in the minds of other GM's. If he doesn't get the big contract this summer, he's probably not going to. Williams is gone. Damn sure won't be forgotten though.

Wish Williams was like 28, healthy, and signed for 5 more years.

 

[KINGS17]

this is strictly based on the rumors out there but rumor is that Williams is looking to get paid with a capital P and sign a five-year deal

Williams is going to have a tough time getting that type of deal from any team in this environment.

 

[KingsFan7824]

Williams is going to have a tough time getting that type of deal from any team in this environment.

Never put anything past NHL GM's, when it comes to free agency.

 

[deeshamrock]

Actually, we've spent $64.1 million on 17 players.

The cap is not projected to be $68 million. That's worst-case scenario guesswork. That number was floated around when the Canadian dollar fell to 79 cents on the dollar. Today it's at 82.4 cents. Big difference.

We should have at least $5-6 million. That's enough to get Toffoli, Shore, Jones, Andreoff (or another minimum player) and someone like McBain signed. And that doesn't require buying out Richards. If DL trades or buys him out, he has more room. If he's decided to move Voynov if re-instated, he has even more room.

My point was just that there's no reason for the League to bail out teams like us by giving us another compliance buyout. There should be consequences for not managing your cap. We'll have no problem filling out a roster. It just won't be an ideal roster. That's the way it goes.

1. 64,964,394 is close to 65M so I rounded it off

(Salary Cap Payroll 64,964,394; Cap Space- 4,035,606)


2. I didn't say the CAP would be 68 I said 68-70 and that was the projection as of last week, the low end coming from Fehr and the NHLPA. Elliot Friedman is a lot closer and more knowledgeable o nthe subject than yoiu or I, he did his research, and said by all he spoke to , 70M is close to what they feel.

3. Even if the CAP hit 72M and they did have 6 M, you have them signing 5 players for that. And Sekera isn't signed???

4. Agree on the League not giving another buyout, that's on the GM's. But if the Kings elect not to part with MR, there isn't enough money to get the key 4 (Jones, Shore, TT and sekera) signed. Let alone McBain and Andy Andy. Sekera's not going to wait until August for Voynov's outcome, not when he'll have offers on July 1.
DL has his work cut out for him.

 

[tsanuri]

Actually, we've spent $64.1 million on 17 players.

The cap is not projected to be $68 million. That's worst-case scenario guesswork. That number was floated around when the Canadian dollar fell to 79 cents on the dollar. Today it's at 82.4 cents. Big difference.

We should have at least $5-6 million. That's enough to get Toffoli, Shore, Jones, Andreoff (or another minimum player) and someone like McBain signed. And that doesn't require buying out Richards. If DL trades or buys him out, he has more room. If he's decided to move Voynov if re-instated, he has even more room.

My point was just that there's no reason for the League to bail out teams like us by giving us another compliance buyout. There should be consequences for not managing your cap. We'll have no problem filling out a roster. It just won't be an ideal roster. That's the way it goes.

For the numbers it uses an average so the fact it went back up helps some but it won't help that much. It's not like they were using that as the actual number.

 

[Fishhead]

If I am DL, I sign Sekera. Guys like Voynov, Martinez, and Muzzin are going to be sought after quantities, and will all bring back good returns. You could suggest that the Kings would lose a little leverage as it would be known that moving one of them is a necessity, but those guys are all really good players on really good contracts, so there would be significant interest.

 

[fsanford]

Never put anything past NHL GM's, when it comes to free agency.

Maybe, but the fact the cap is not going up like they though will scare some of them.

Realistically how many of them will have a lot of $$ to spend?

Its gonna be a weird free agent year..

 

[KingsCourt]

I could see bringing back Williams on a 1-year deal for $2 million, but that's it. He was an integral part of our two Cup runs. If the guy wants one more shot at the Cup with us, I'd say he's earned it. But not for more than $2 million a year.......

Yup he earned it...now let another team pay him...we got way more than what we paid for.

 

[regulate]

Canadian dollar up to .82 cents today vs US. Keep on truckin!

 

[Fishhead]

Canadian dollar up to .82 cents today vs US. Keep on truckin!

We should have a sticky thread on currency markets.

 

[tsanuri]

It's really going to come down to how hard each side wants to fight. Here we go again. But we know from all the previous statements it assumes the escalator.

 

[kingsholygrail]

While I know the answer I have to wonder if the league would consider another buy out as a means to help yet again even things out a little. The NHL will remain in trouble as long as the Canadian Dollar has anything to do with figuring into the finances.

pretty sure another compliance buyout would require the NHLPA to agree to it and fat chance of that.

 

[HeadInjury]

pretty sure another compliance buyout would require the NHLPA to agree to it and fat chance of that.

It would but they'd be all for it. Compliance buyouts cause teams to spend more in the end since they get extra cap room.

 

[KINGS17]

It would but they'd be all for it. Compliance buyouts cause teams to spend more in the end since they get extra cap room.

You forget it's a 50/50 split of revenue between the players and owners. That 50% to the players includes all of the money that the owners spend on players, even the ones they buy out.

 

[Captain Mittens*]

You forget it's a 50/50 split of revenue between the players and owners. That 50% to the players includes all of the money that the owners spend on players, even the ones they buy out.

No ****?

I always assumed that buyouts were outside of that.

 

[417th]

pretty sure another compliance buyout would require the NHLPA to agree to it and fat chance of that.

"While I know the answer".

I knew what it would take for it to be considered and I already know that it would have little chance of happening but I also know that as long as the NHL remains tied to the Canadian Dollar they are going to have trouble. Of course compliance buyouts would be a difficult thing to get done but that doesn't mean that it would be impossible. Also, there is going to be an expansion coming up, when that happens there will be an expansion draft and with it there will be other reparations made by the existing teams, the league and the NHLPA to make everything work. Time will solve allot of problems in some ways and make more in others. Of course the NHLPA would likely support another comp buyout because it provides a means for teams to spend more money on players and as such puts more money in the kitty.

 

[tsanuri]

No ****?

I always assumed that buyouts were outside of that.

Well they aren't it's part of the share. So it wouldn't exactly benefit the PA.

 

[johnjm22]

I agree with this in principle, but the cap is based on something that is completely at the mercy of global economics. It is impossible to gauge future fluctuations of currency for people who study it for a living, let alone a hockey GM.

Buyouts are a bit extreme, but there should be something to account for external factors. It doesn't matter if its based on the CDN or USD, what if they dropped to .70? Teams who have done a perfect cap job could be over the cap just with their current roster, all of which are on guaranteed contracts. The NHL is unique in that it is spread somewhat evenly between two countries, so there are always going to be cap unpredictability that other leagues don't have to deal with.

Sure there could be something in place for extreme situations like a financial crisis, but we're talking about the cap potentially going down by 3M. That's not enough to warrant relief for teams that are in tight situations.

One of the purposes of the cap is to help spread talent more evenly through out the league. The current situation is going to help facilitate that.

 

[tsanuri]

Sure there could be something in place for extreme situations like a financial crisis, but we're talking about the cap potentially going down by 3M. That's not enough to warrant relief for teams that are in tight situations.

One of the purposes of the cap is to help spread talent more evenly through out the league. The current situation is going to help facilitate that.

No we're not talking about it going down by 3M. The cap was 69M last year. The lowest number I have heard is 68M. And that number was without the escalator being used.

 

[Captain Mittens*]

And that number was without the escalator being used.

 

[Fishhead]

No we're not talking about it going down by 3M. The cap was 69M last year. The lowest number I have heard is 68M. And that number was without the escalator being used.

The problem is there are rarely contracts that don't go up in value every year. A 1M drop is substantial when it's went up an average of $3M each year. Even staying the same is a big problem for a lot of teams.

Fans of cap teams everywhere are praying for the CDN to rally, it's just an odd situation. The cap is great and it's really done it's job by rewarding smart teams that can identify talent. This is just one of the imperfections of the system that really pushes GMs/cap guys to their limits. I don't blame the Kings situation entirely on the cap, because they have made some poor decisions and now they have to suffer because of it. It's still obvious the cap could use some more tweaking though.

I'm not sure if it's feasible for the league, but perhaps a system that is still based on the CDN, but instead of using it's current value, use the average value over the last 6 months or other time period. It would give teams a better idea of the upcoming numbers and allow them to plan better.

 

[tsanuri]

The problem is there are rarely contracts that don't go up in value every year. A 1M drop is substantial when it's went up an average of $3M each year. Even staying the same is a big problem for a lot of teams.

Fans of cap teams everywhere are praying for the CDN to rally, it's just an odd situation. The cap is great and it's really done it's job by rewarding smart teams that can identify talent. This is just one of the imperfections of the system that really pushes GMs/cap guys to their limits. I don't blame the Kings situation entirely on the cap, because they have made some poor decisions and now they have to suffer because of it. It's still obvious the cap could use some more tweaking though.

I'm not sure if it's feasible for the league, but perhaps a system that is still based on the CDN, but instead of using it's current value, use the average value over the last 6 months or other time period. It would give teams a better idea of the upcoming numbers and allow them to plan better.

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.