Good article on why a salary cap won't solve the league's problems

[waffledave]

This was in the Montreal Gazette this morning. Mostly stuff we already know but I think Pat puts it pretty nicely.

http://www.canada.com/montreal/mont....html?id=720048d3-a562-4b90-b4d1-121b128a8ddd

Click to read more...

 

[AM]

Ahh, that was Pejorative Slured

It's not hard to see who's fluffing that guys pillows.

I know, why dont all revenues go into a central pot, and each team gets an equal share, this will solve all the problems....

Sure, but teams who have higher revenues would never go for it.

 

[FLYLine27*]

A salary cap won't fill the empty seats in these cities - Three years ago, the Carolina Hurricanes were the flavour of the month when they reached the Stanley Cup final; last season, their attendance was pitiful.

A luxury tax with teeth would do a far better job of redistributing wealth between the large- and small-market teams. Bettman has dismissed the NHLPA's projection of savings through a luxury tax as "guesswork."

In a memo sent to the 30 teams yesterday, the NHL said it envisions a revenue-sharing plan that would be funded by a "portion of revenues generated in the Stanley Cup playoffs."

Talk about guesswork. How can you have any accurate projections of revenue from a two-month series with as few as 60 games and as many as 105?

Ticket prices - Bettman has implied on several occasions that cost-certainty is needed to ensure ticket prices are affordable. While the economy of the NHL is driven by gate receipts, it's naive to suggest ticket prices will drop as a result of a salary cap. The Canadiens have already made it clear ticket prices will not be reduced at the Bell Centre.

While the NHL wants to deprive the players of a free market, ticket prices will continue to be determined by what the market will bear. That's why you can get a game ticket, a program, a cap and a pizza for $40 in Buffalo and pay about $150 for the same product in Toronto.

If ticket prices do down, it won't be because there's a salary cap, but rather because market conditions dictate lower prices.

Great Article. No BS or assumptions that come out from the Bettman Side.