Could the NHL ever have contracts that were a minimum value + % of the cap?

[Merrrlin]

With rumors swirling about Mahommes extension being a hybrid of a base salary + a % of the cap, it made me wonder if this would work in hockey?

For example, Matthew Barzal signs his deal this year. What if he signed a 4m/yr + 5% of the cap. Gives him 8m during the flat cap years, then his deal grows as the cap goes up.

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[M88K]

With rumors swirling about Mahommes extension being a hybrid of a base salary + a % of the cap, it made me wonder if this would work in hockey?

For example, Matthew Barzal signs his deal this year. What if he signed a 4m/yr + 5% of the cap. Gives him 8m during the flat cap years, then his deal grows as the cap goes up.

Doubtful With the HRR split being 50/50 that it'll ever work in the nhl

 

[Hockey4Lyfe]

10+ years and $400 million+

There’s too much money in America

 

[Merrrlin]

10+ years and $400 million+

There’s too much money in America

Insane, right? the last tweet I saw was 400 million as a minimum, so 40m/year. Then you add the % of cap, which some think will add around 15 million this year (and will go up as the cap goes up).

Just a crazy contract.

Just a little reminder how small the NHL is in comparison, where McDavid makes 12.5...

 

[danpantz]

10+ years and $400 million+

There’s too much money in America

The NFL is in an entirely different stratosphere in terms of revenue. Those numbers are insane, but considering he is the best player in the highest grossing league, his contract was going to be insane no matter what.

Mahomes is the McDavid of the NFL except he also wins.

 

[Merrrlin]

The NFL is in an entirely different stratosphere in terms of revenue. Those numbers are insane, but considering he is the best player in the highest grossing league, his contract was going to be insane no matter what.

Mahomes is the McDavid of the NFL except he also wins.

Bears fans right now:

 

[danpantz]

Bears fans right now:

Oh man lol. Would have been like someone trading up in Mcdavids draft and selecting Strome ahead of him.

 

[Hockey4Lyfe]

Insane, right? the last tweet I saw was 400 million as a minimum, so 40m/year. Then you add the % of cap, which some think will add around 15 million this year (and will go up as the cap goes up).

Just a crazy contract.

Just a little reminder how small the NHL is in comparison, where McDavid makes 12.5...

Just absolutely outrageous and crazy that they would do that for that long. They have to have an out.

With how freaky injuries can get in the NFL, imagine having dead money on your salary cap for 7-8 years because some stupid shit happened to your QB and he had to retire. That would be franchise crippling.

 

[danpantz]

Just absolutely outrageous and crazy that they would do that for that long. They have to have an out.

With how freaky injuries can get in the NFL, imagine having dead money on your salary cap for 7-8 years because some stupid shit happened to your QB and he had to retire. That would be franchise crippling.

Nfl contracts are mostly smoke and mirrors. Most of them have out clauses. It's also why you'll see players hold out after getting all there guaranteed money up front and realize they have 3 more years at a regular salary and realize they can just get that contract torn up and cash in again.

 

[1865]

I’ve thought for a while that % of cap makes so much more sense. Players can sign knowing they’re paid a proportional amount and it can increase. Clubs can’t be screwed by cap raises or decreases too. Much easier for HF to compare contracts too, and that’s what’s important.

 

[Hockey4Lyfe]

Nfl contracts are mostly smoke and mirrors. Most of them have out clauses. It's also why you'll see players hold out after getting all there guaranteed money up front and realize they have 3 more years at a regular salary and realize they can just get that contract torn up and cash in again.

If his salary is tied to a percentage of the salary cap every year, it’s going to be a completely new and foreign contract comparative to the ones everyone is accustomed to.

But like you said, will definitely be interesting to see how his contract ends up structured.

 

[Hockey4Lyfe]

I’ve thought for a while that % of cap makes so much more sense. Players can sign knowing they’re paid a proportional amount and it can increase. Clubs can’t be screwed by cap raises or decreases too. Much easier for HF to compare contracts too, and that’s what’s important.

How would that even work then? Do the players all get paid the same amount? Tell Crosby or McDavid that they should get paid as much as Jack Johnson.

Or a percentage of the cap based on what your position is? Someone like Drai or Malkin would be screwed when they are better than 95% of the 1 C’s in the league but they are 2C on their team.

There’s no proper way to do it so that why the current system is used. It also works and makes teams actually work to compete.

 

[danpantz]

How would that even work then? Do the players all get paid the same amount? Tell Crosby or McDavid that they should get paid as much as Jack Johnson.

Or a percentage of the cap based on what your position is? Someone like Drai or Malkin would be screwed when they are better than 95% of the 1 C’s in the league but they are 2C on their team.

There’s no proper way to do it so that why the current system is used. It also works and makes teams actually work to compete.

I'm assuming its a percentage of the salary cap. Like 15% of the cap this year would be 12.225 mil. Then when it eventually goes up again in a couple years to say 88 mil or something it would be 13.2 mil.

 

[danpantz]

Rumors of a % were false.

But god damn 140 Mil injury guarantee

 

[The Macho King]

I believe it's not permitted under the CBA, but I would need to check and see chapter and verse on that.

 

[Khelandros]

If you tie a players salary into a percentage of the cap, whenever there is a rise in the salary cap, that player would take a chunk of the rise. This would make it more difficult to sign replacement players as you would have less actual cap space to work with.
Using McDavid as an example:
2019-20 -> 16.67% of Cap * 81,500,000 = $13,586,050. Leaves Edmonton with $67,913,950 to fill out their team.
2020-21 -> 16.67% of Cap * 84,500,000 = $14,086,150. Leaves Edomonton with $70,4113,850 to fill out their team.

On a $3MM cap rise, Edmonton only gains @2,499,900 extra for their cap expenditures after McDavid gets his cut. No Gm would ever want to hand cuff themselves like that.

 

[tyhee]

I believe it's not permitted under the CBA, but I would need to check and see chapter and verse on that.

Good call. Article 50.2(a)(i) of the CBA requires that a player salary be a fixed amount of money.

 

[TheWhiskeyThief]

With rumors swirling about Mahommes extension being a hybrid of a base salary + a % of the cap, it made me wonder if this would work in hockey?

For example, Matthew Barzal signs his deal this year. What if he signed a 4m/yr + 5% of the cap. Gives him 8m during the flat cap years, then his deal grows as the cap goes up.

Not possible under CBA. Considering how little NHL actively looks to grow the game on HRR side(BAM tech deal not HRR) beyond incrementally, I don’t know why a player would want that kind of deal.

 

[tarheelhockey]

It’s plausible in theory, but every contract would have to be structured that way. A mix of different types of contract would cause huge problems with cap management.

The biggest barrier is simply that you’d need a 2005-style meltdown in order to get a total reset and start the new system.

 

[LeapOnOver]

Rumors of a % were false.

But god damn 140 Mil injury guarantee

Chopping off my pinkie in a "gardening accident" and calling it a career!

 

[danpantz]

Chopping off my pinkie in a "gardening accident" and calling it a career!

Might consider holding onto the ball a little longer in the pocket

 

[1865]

How would that even work then? Do the players all get paid the same amount? Tell Crosby or McDavid that they should get paid as much as Jack Johnson.

Or a percentage of the cap based on what your position is? Someone like Drai or Malkin would be screwed when they are better than 95% of the 1 C’s in the league but they are 2C on their team.

There’s no proper way to do it so that why the current system is used. It also works and makes teams actually work to compete.

What? No.

Basically, when you sign a new deal you don’t sign it for $Xm a year but you sign it for X% of the cap. Your Crosby’s of this world will sign for 10/15% or whatever it turns out to be, your JJ’s get 4/5%.

 

[Tobias Kahun]

Doubtful With the HRR split being 50/50 that it'll ever work in the nhl

Revenue in the NFL is split 53/47, with the players being 47 I believe. So if it could work in the NFL, it could definitely work in the NHL, but its a moot point as thats not how his contract is.

 

[Tobias Kahun]

Chopping off my pinkie in a "gardening accident" and calling it a career!

I doubt he would get the 140m injury guarantee with an injury like that, that was sustained in a non football way.

 

[TaLoN]

With rumors swirling about Mahommes extension being a hybrid of a base salary + a % of the cap, it made me wonder if this would work in hockey?

For example, Matthew Barzal signs his deal this year. What if he signed a 4m/yr + 5% of the cap. Gives him 8m during the flat cap years, then his deal grows as the cap goes up.

No, because NHL cap rules don't allow a player's cap hit to change from one year to the next.

The player's cap number is the Average Annual Value of the contract, or AAV. A fixed number.

NFL contracts though, their cap number is based on the contract value of each season individually. The reason they can do this? Their contracts are not fully guaranteed.

They do have "guaranteed" stipulations that get put into contracts, but it's very rare that NFL players get the full value of the contracts they sign, unlike the NHL.

Good call. Article 50.2(a)(i) of the CBA requires that a player salary be a fixed amount of money.

The player's salary doesn't have to be fixed, but his cap hit does.

Ie, a three year contract could break down as such: $2m yr1, $3m yr2, $4m yr3. Cap hit for all three seasons would be $3m.