JHere's why a soft cap won't work

Discussion in 'Fugu's Business of Hockey Forum' started by arnie, Jan 9, 2005.

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  1. arnie

    arnie Registered User

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    The NBA has a soft cap with a team limit of $43 million. Dallas has used various loopholes to get its payroll to an astounding $90 million. No wonder the NHL is determined to get an absolutely hard cap. Anything else and all it takes is one Mark Cuban to destroy the system
     
  2. Nimrods Son

    Nimrods Son Guest

    NY Knicks have the highest payroll this season at $107 million
     
  3. Brent Burns Beard

    Brent Burns Beard DontTouchMyDonskoi!

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    i guess it comes down to your defination of "not working".

    dr
     
  4. Brodeur

    Brodeur Registered User

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    Everybody has used loopholes (aka the Larry Bird exception) in the NBA.
     
  5. Winger98

    Winger98 Moderator

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    Someone (I think JohnFlyersFan) has posted numerous times that the NHL would want nothing to do with an NBA style cap, posting the salaries of NBA teams and what not. I'm not sure any team is under the cap. However, the NBA has the money to support their system and it's apparently working for them since I don't see David Stern or any of the owners running to the papers to cry poverty.
     
  6. hockeytown9321

    hockeytown9321 Registered User

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    The NHL would want nothing to do with the NBA's system because it includes respectable revenue sharing.

    And the NBA is going to be looking very closely at the NHL lockout. Their CBA expires after this season, and if they think they can get away with what Bettman has, they'll try.
     
  7. hockeytown9321

    hockeytown9321 Registered User

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    The NFL's hard cap this year is about $80 million. The Redskins payroll is about $110 million.
     
  8. likea

    likea Registered User

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    but unlike the NBA, Washington will pay for that later just like San Fran, Ravens, Jacksonville and many others have

    thats why the NFL system is fair
     
  9. ScottyBowman

    ScottyBowman Registered User

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    The NBA has a 100% luxury tax after you go over a certain amount which varies every year according to revenue, but the amount is usually in the ballpark of 54-$58 mil. The Knicks pay a $50 mil tax with that kind of salary. The reason why teams are allowed to go over the cap is when you re-sign your own player or you can trade someone in their last year of their contract etc.. Also, the NBA gives each team a MLE (which equates to 4.5 mil) which allows any team to sign a player with that amount no matter how far over the cap they may be. Their is not going to be many teams in the league that are going to want to pay $25 mil a year in taxes, so I can't see why it won't work.
     
  10. CarlRacki

    CarlRacki Registered User

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    Exactly. Also, payroll and cap figure are not the same thing.
     
  11. thinkwild

    thinkwild Veni Vidi Toga

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    Redskins have to pay for it, unlike the Caps. When the Caps are loaded up with UFAs they can just keep them forever because they have a crazy owner who is willing to spend whatever it takes to win.

    I think everyone in basketballl is supposed to be above the cap. The important part of basketball is the escrow which ties salaries to defined revenues. The soft cap, basically what the PA proposed, isnt the important part Daly is after. When he says the basketball cba would be a good starting point, he is referring to the tie between revenues and salaries. The rest of the taxes and exemptions are just a method of implementing it. They could implement it a million different ways. If there is no tie between revenues and salaries the PA will be ok with it. If there is the owners will let them implement it pretty much anyway they want.

    The players are proposing a system of incentives and rewards. THe owners think that karmanos invested smart money in Carolina and he deserves to be guaranteed an increase in franchise value and profits with that team. At least they make fans think that, but their actual proposals disqualify him from receiving revenue sharing by making him reach certain incentives in tickets sold to qualify, although he will be required to spend more.
     
  12. ScottyBowman

    ScottyBowman Registered User

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    The Knicks and any other team that is over the cap pays for it also. They can't sign any quality free agents. If you look at the Knicks roster, it is filled with overpaid players. It is not filled with quality young talent. The Knicks could not just go ahead and sign Shaq when he's a UFA. They can only trade for him by matching contracts.
     
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