Salary Cap: New Salary Cap to Habs Advantage (Possible 81.5M for next 3 seasons)

FrankMTL

Registered User
Jan 6, 2005
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With all the talk about the Salary Cap going down, this could really be to the Habs advantage.

For one, they're not up against the cap currently, and therefore have space to take on "cap dumps" for next season and perhaps sign a decent free agent this summer.

The second thing is that in the next year or so, the Habs have to resign most of their better players including:

Max Domi (2020)
Tomas Tatar (2021)
Brendan Gallagher (2021)
Jeff Petry (2021)
Philip Danault (2021)

Do you think with regards to the cap, that there will be an adjustment to the market (in terms of salaries) and these players will more than likely sign for less than they would have?
 

Le Barron de HF

Justin make me proud
Mar 12, 2008
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I think a lot of it largely depends on whether the NHL decides to allow teams to have amnesty buyouts like they did for the shortened season. On one hand it would allow us to get rid of Alzner but on the other hand it could hurt the market for us on capitalizing on some of these. If I were MB, my main goal this summer would be to OS Sergachev.

Basu and Godin did an analysis a few days ago on the impact for these players and perhaps with the way escrow is going to go, some players will look at backloaded deals rather than frontloaded ones and guaranteed money will be in huge demand.
 
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CrAzYNiNe

who could have predicted?
Jun 5, 2003
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Also think about salary roll backs? Some of the smaller clubs might not survive in a league with the lost revenue. I haven’t crunched any numbers but I’m convinced some franchises will have to decide between depth and a star player if their internal cap is less than that of the NHL
 

Simarino

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Oct 21, 2009
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I think a lot of it largely depends on whether the NHL decides to allow teams to have amnesty buyouts like they did for the shortened season. On one hand it would allow us to get rid of Alzner but on the other hand it could hurt the market for us on capitalizing on some of these. If I were MB, my main goal this summer would be to OS Sergachev.

Basu and Godin did an analysis a few days ago on the impact for these players and perhaps with the way escrow is going to go, some players will look at backloaded deals rather than frontloaded ones and guaranteed money will be in huge demand.

You look at the top teams and alot of them dont have really bad contract ala Alzner that they can easily unload. Toronto,Tbay,Pittsburgh,Washington, St Louis, they don’t really have bad contract and they are the teams that would need cap relief the most.
 

ahmedou

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Oct 7, 2017
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In any case what should be an advantage is screwed by us to a disadvantage...
 
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NeptunesTrident

Registered User
Feb 22, 2007
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Pierre McGuire stated it could drop by 30%. At 81.5M, 30% would put it at roughly $57M. Now I’m hopeful McGuire is exaggerating but that would pretty much screw every team, Habs included. Only way that it wouldn’t screw the teams is if they took every contract and dropped them 30% across the board.
 
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CHfan1

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Apr 23, 2012
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Pierre McGuire stated it could drop by 30%. At 81.5M, 30% would put it at roughly $57M. Now I’m hopeful McGuire is exaggerating but that would pretty much screw every team, Habs included. Only way that it wouldn’t screw the teams is if they took every contract and dropped them 30% across the board.

All the salaries are going to drop no matter what though since hockey related revenue is going to be way down and the players only get 50% of that.
 

JianYang

Registered User
Sep 29, 2017
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Pierre McGuire stated it could drop by 30%. At 81.5M, 30% would put it at roughly $57M. Now I’m hopeful McGuire is exaggerating but that would pretty much screw every team, Habs included. Only way that it wouldn’t screw the teams is if they took every contract and dropped them 30% across the board.

I don't think this system was developed for such a swing in salary cap.

I'm not totally sure how the escrow is applied, but maybe they have a softer cap drop than 30%, and instead recoup their losses via escrow.

Either way, the player salaries are going to take a big hit, but if they manage the loss through escrow more than a dramatic hard cap decrease, then it might make the GM's life a bit easier.
 

frapp10

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Feb 21, 2015
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We also have to remember we have Gallagher, Danault, Petry, Tatar, Armia contracts to think about. All of those players deserve a hefty raise. Contracts for Suzuki and Kotkaniemi as well
 

Habs Halifax

Loyal Habs Fan
Jul 11, 2016
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Pierre McGuire stated it could drop by 30%. At 81.5M, 30% would put it at roughly $57M. Now I’m hopeful McGuire is exaggerating but that would pretty much screw every team, Habs included. Only way that it wouldn’t screw the teams is if they took every contract and dropped them 30% across the board.

Why not prorate the cap to what we were on track for before things were shut down? I don’t believe the cap will go down if the season starts on time next year. Too much scrambling if they do and each years cap is a evaluation of the previous year’s numbers.

Hope everyone on our boards are doing OK! Crazy world right now
 
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Habs Halifax

Loyal Habs Fan
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All the salaries are going to drop no matter what though since hockey related revenue is going to be way down and the players only get 50% of that.

Think revenue per game.. if there is a 82 game schedule, the revenue will be similar to previous years.

big question is did they pay they players 100% of their salaries this year after things were shut down? We are talking 12% of the season. Maybe the players loose all of the escrow? What was that? 5% or 10%?
 

NeptunesTrident

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Feb 22, 2007
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Think revenue per game.. if there is a 82 game schedule, the revenue will be similar to previous years.

big question is did they pay they players 100% of their salaries this year after things were shut down? We are talking 12% of the season. Maybe the players loose all of the escrow? What was that? 5% or 10%?
How can they sell season tickets for a season they don't know when, or if it will start in the fall? How can they sell single seats? How many games in the season? If they are required to play in empty arenas, the loss of revenue will be more than 5-10%.
 

CHfan1

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Apr 23, 2012
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Think revenue per game.. if there is a 82 game schedule, the revenue will be similar to previous years.

big question is did they pay they players 100% of their salaries this year after things were shut down? We are talking 12% of the season. Maybe the players loose all of the escrow? What was that? 5% or 10%?

The players were paid their salaries and escrow was at 14%. Also the playoffs were not played which is a big part of HRR. Playing in front of empty arenas won’t help either.

NHL assures players will be paid through season

As for next season I expect revenue to be down even if all 82 games are played. North America is going to go through a huge economic downturn and I expect it will affect all sports.
 

Habs Halifax

Loyal Habs Fan
Jul 11, 2016
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How can they sell season tickets for a season they don't know when, or if it will start in the fall? How can they sell single seats? How many games in the season? If they are required to play in empty arenas, the loss of revenue will be more than 5-10%.

Hard to predict.. all I know is even after the last time the season was canceled due to CBA negotiations, the NHL rebounded very very well. Don’t underestimate sports fans
 

Habs Halifax

Loyal Habs Fan
Jul 11, 2016
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The players were paid their salaries and escrow was at 14%. Also the playoffs were not played which is a big part of HRR. Playing in front of empty arenas won’t help either.

NHL assures players will be paid through season

As for next season I expect revenue to be down even if all 82 games are played. North America is going to go through a huge economic downturn and I expect it will affect all sports.

I expect the sports herd to come out in full force once this settles.. only a question of when
 
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CHfan1

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Apr 23, 2012
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I expect the sports herd to come out in full force once this settles.. only a question of when

When is definitely the question. If they have to wait until a vaccine comes out it’ll be awhile.

Also when fans can start watching sports again I think they’ll come out initially but with the amount of jobs being lost I don’t see that being sustainable. There’ll be a lot of fans who can’t afford to pay for anything hockey related.

I’m wondering if the NHL will lose some franchises due to this.
 
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sheed36

Registered User
Jan 8, 2005
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No Man's Land


That sounds great but I'll be surprised it it doesn't drop some.

I wonder how the NHL and NHLPA will deal with the loss of revenue if this season is lost in regards to the 50/50 HRR split? As far as I understand the players were pretty much paid in full for this season (maybe missed only one pay period) but with the potential loss of HRR for possibly losing the final month of the season and the playoffs how will that affect the 50/50 split this season?

I can't see all that HRR loss falling completely on the owners so that should make for some interesting upcoming conversations between the NHL and the NHLPA regarding how much the players will have to pay back to make the 50/50 split whole..

Edit: Lebrun's reply to that Strickland tweet so we'll see.

 
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