If a deal, Cap issues?

Discussion in 'Fugu's Business of Hockey Forum' started by Jaded-Fan, Feb 19, 2005.

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  1. Jaded-Fan

    Jaded-Fan Registered User

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    Any team in Cap trouble at $45 million? What does the NHL do in ten days to fix it? Dispersal draft next weekend? What about a salary floor? If $25 million like was in the last proposals, many teams are well under that right now. Scramble to sign players at inflated prices or what? Still lots to work out I think. Thoughts?
     
  2. SENSible1*

    SENSible1* Guest

    One week buyout period that will not count against cap.
     
  3. Jaded-Fan

    Jaded-Fan Registered User

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    Just am asking as I am not sure. I am not even sure if it would be an issue at all this year as so few games will be played. Would the Cap be prorated this year for instance. 28 games would be about 35% of the season . . . would the teams only be able to spend $15.75 million (35% of $45 million) or $45 million. If $45 million no problem. If $15.75 then some may have Cap problems. I have no answers, merely am raising the questions.
     
  4. Drury_Sakic

    Drury_Sakic Registered User

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    I don't think any teams will be in trouble..

    3 teams were over the 42.5..

    and I doubt they are a ton over 45 if any..

    So just give them a week to either trade players..

    or buy out players not against the cap..
     
  5. SENSible1*

    SENSible1* Guest

    I was just giving a possible solution.

    As for your other question, it is my understanding that it would be pro-rated.
     
  6. Jaded-Fan

    Jaded-Fan Registered User

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    I have no clue so am asking. Buy out players, will that count against the Cap in any way? Does that mean outright release? If it only means spending money, which those teams have plenty of, Bettman's warnings were pretty hollow. What ramification of the 'buyout' if any to the three teams?
     
  7. Jaded-Fan

    Jaded-Fan Registered User

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    Just so you know, I was not being smart with you, I was asking because I have not seen spelled out exactly how these issues will play out.
     
  8. Mess

    Mess Global Moderator

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    Very insignificant problem IMO ..

    here is an link that shows current players and 24% rollback effect ..

    http://www.leaderboard.com/R1131.HTM

    Only 3 teams Philly, Toronto , NJ over 45 mil ..

    For Toronto for example .. Mogilny had surgery and his 5.5 Mil is being paid by insurance not the leafs and he is likey done for the season .. Does that amount count against a Cap ..

    and how does a short season work anyways .. A player is only getting a small portion of his Salary now so why would you count a player like Pronger at 10 mil if you only need to pay him 2.5 mil in 1/4 season??
     
  9. SENSible1*

    SENSible1* Guest

    I didn't take your post that way at all.
     
  10. SENSible1*

    SENSible1* Guest

    Toronto is at 46 but only has 19 players signed.

    Mogilny's contract would count against the cap, unless they put in a long term IR clause to counter the injury/guaranteed contract problem. Of course any such clause would likely make him ineligible to return this year, regular season or playoffs.
     
  11. Jaded-Fan

    Jaded-Fan Registered User

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    Thunderstruck said above that the Cap would be prorated. So in your example Pronger would count as $3.5 million (28 games = 35% OF 80 games) out of $15.75 million (35% of $45 million), and if the team hits $45 million, from a quoted article in another thread the team will have to pay $2 million (40% of $5 million over $40 million) in luxury tax.
     
  12. RangerBoy

    RangerBoy TRUST THE PROCESS

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    Will the $42.5-$45 million cap be for all players including the AHL players under contract?The NFL cap includes players on the practice squad.If a team is right up against the cap and they need to recall a player from the AHL and that player makes $750,000 NHL which puts the team over the cap,wonder how that would be handled?

    Remember reading in a Kevin Paul Dupont column last summer teams would be able to buy out players without having the buy out count against the cap

    The player-agent and the team executive said the number proposed for the cap would be $45 million. Because revenue for this season and next would probably be lower, however, the player-agent said it was his understanding that there were proposals on the table for a cap to start in the $42.5 million range and eventually rise to $45.75 million.

    http://www.nytimes.com/2005/02/18/sports/hockey/19NHL-WIRE.html?oref=login
     
  13. RangerBoy

    RangerBoy TRUST THE PROCESS

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    From August 15,2004

    Question is, if a hard cap is implemented, what happens to the likes of the Red Wings and Stars with payrolls of $60 million or more? Word among the small-market clubs is that the free spenders will be forced to buy out enough contracts to get down to the cap figure -- a vastly different approach than a more laissez-faire "grandfathering" system. Under the current CBA, contracts must be bought out at two-thirds the guaranteed amount -- with payments eased out over twice the term of the existing deal. If that formula remained intact with, say, a $40 million cap, a club with a $60 million payroll would be forced to shed $20 million worth of contracts, at a cost of some outside-the-cap $13.5 million. Rendered free agents upon their buyouts, those players then could be signed by clubs that are below the cap figure

    http://www.boston.com/sports/hockey.../nothing_is_certain_with_bruins_approach?pg=2

    It would be an outside the cap hit
     
  14. Mess

    Mess Global Moderator

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    Well that clause does not exist in the NHL just the NFL at this point about IR .. So it may need to be a part of this CBA .. because are you allowed to buyout and injured player ?? and Mogs is done for the year but that 5.5 in in the total since he is under contract .. Remove it and bring up the AHLers

    With Toronto that does not count AHL players like Stajan and Carlo and Telly likely to fill out the roster etc ..

    How do you count a cap in a short season ..

    I actually believe that the NHL will not UNCANCEL the season ..and work on a deal and then tells us fans that we will all start fresh in September ..

    Less confusing for everyone ..
     
  15. Vast Ant Dioi

    Vast Ant Dioi Registered User

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    I disagree. I think there is little point to striking a deal right now* unless it is to play hockey this year. The owners can get a better deal simply by waiting as little as one week from now, when the season would truly be cancelled. If there is a deal reached tomorrow or this weekend, it is to play hockey this year, not in September.

    * I am of course referring to the 40-45 million no-linkage cap, which I think is the only deal the PA would agree to at this time.
     
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