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

Video Coach

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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.

Didn’t hear that but I’ve heard the 30% number in reference to escrow, not cap reduction. Mostly likely the cap will stay flat and the pa and nhl will negotiate a cap/escrow fix for this year and next as per Lebrun.
 
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sheed36

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Didn’t hear that but I’ve heard the 30% number in reference to escrow, not cap reduction. Mostly likely the cap will stay flat and the pa and nhl will negotiate a cap/escrow fix for this year and next as per Lebrun.


I've heard Pierre say the cap could drop upwards of 30% 2 or 3 times now on his TSN690 segments over the past 2-3 weeks. He said this isn't his opinion and that 30% number is coming from people he talks to around the NHL but it all sounds like speculation at this point so we'll see how all this eventually shakes out.
 

Luigi Habs

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I've heard Pierre say the cap could drop upwards of 30% 2 or 3 times now on his TSN690 segments over the past 2-3 weeks. He said this isn't his opinion and that 30% number is coming from people he talks to around the NHL but it all sounds like speculation at this point so we'll see how all this eventually shakes out.

There is no way the salary cap drops by 30% in one off-season, unless the players accept a 30% salary decrease across the board, which won't happen.

They will probably maintain the salary cap, or drop it by 5-10% at the most, and manage the rest through escrow. I think it's going to be unfair for the players who are soon to be FAs. I think we will see a lot of 1 or 2 yrs contracts signrf. We will see players of equivalent value but one paid 6M and the other 4M.
 

loudi94

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So, taking into account that it is very likely 2020/21 will be played without fans, can you see the Habs playing home games in Brossard instead of the BC? Would save them tons of money and the rink seems to be set up well for broadcasting.
 

mouser

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I would rather keep that buyout until Price/Weber are done to use it... Alzner's contract is over in two years.

I highly doubt there will be a compliance buyout. But if there is I'd expect it has to be done in the summer of 2020, no option for future years. The league is facing a short term revenue shortage. There's no reason to make a longer term buyout deadline.
 

calder candidate

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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?
We don’t really have any cap space since we have to resign basically every player by 2021. The one think that will help is most team are in worst position so in the demand/offer it will drive the prices down in the process + there already multi teams with small budget, if the league has to go playing with no fan does team will get even less revenu which will lower there spending and help drive price down...
 

BLONG7

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Saw this thread and had to laugh, Habs / Salary Cap/ Advantage...
Just think for a second....it's funny stuff. It's along the lines of all of us waiting for MB to become a good GM too!! It hasn't happened in years, and now it will?
Stop guys....just stop!! lol
 
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tazsub3

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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
fully agree, i wont how the aho front loading looks now in Carolina .
 
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Habs

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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

I don't see all 30 teams coming out of this pandemic, no way. 2- 3 teams could fold in the next year, easily. Then it will be interesting to see how many fans return , not sure people want to sit in packed arenas. Doesn't matter for the NFL, the tv deal is so big the fans don't add up to a lot.
 
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Sterling Archer

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Cant see NHLPA agreeing to compliance buyouts when cal hasn’t even dropped. It’s static so don’t see what need there is to give teams a buyout just because they were counting on the cap moving up incrementally.
 

SOLR

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I don't see all 30 teams coming out of this pandemic, no way. 2- 3 teams could fold in the next year, easily. Then it will be interesting to see how many fans return , not sure people want to sit in packed arenas. Doesn't matter for the NFL, the tv deal is so big the fans don't add up to a lot.

Why fold any team, there's 5 cities waiting for teams (including Quebec City)

Doesn't make much sense.

Sure Hurricanes / Panthers can finally blow up, about damn time.
 

Habs

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Why fold any team, there's 5 cities waiting for teams (including Quebec City)

Doesn't make much sense.

Sure Hurricanes / Panthers can finally blow up, about damn time.

Would you invest in an NHL team right now? Could be a couple years before fans really come back to indoor sporting events. The tv contracts aren't big enough to justify the huge expense. I'm not sure what the covid effect will have on teams, will be interesting to see how it plays out.
 

SOLR

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Would you invest in an NHL team right now? Could be a couple years before fans really come back to indoor sporting events. The tv contracts aren't big enough to justify the huge expense. I'm not sure what the covid effect will have on teams, will be interesting to see how it plays out.

Of course I would invest in an NHL team when I can get a 25% discount (like any buyers would get right now). That discount is the cost of running a season at the same salary cap without any revenues for 1 year.

Years? It's delusional to think that, it's not based in any factual framework. There are 68 vaccines, 2 promising antiviral agents, 7-8 preventive agents, 3-4 indirect agents in clinal trials. By the end of October about our solutions war chest will be reloaded.

Worst-case scenario: we will all be vaccinated by June 2021. In the meantime, there will be vaccines for essential workers in December of this year (including NHL players?). Thus worst-case scenario of the NHL, another 6 months of waiting to play, and 1 year of delay. They easily did that during the lockout year.

Franchine folding - about 0% chances of that happening. There are too many billionaires at the door.

Quebecor is growing fast, while this is happening...
 

MTL-rules

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Of course I would invest in an NHL team when I can get a 25% discount (like any buyers would get right now). That discount is the cost of running a season at the same salary cap without any revenues for 1 year.

Years? It's delusional to think that, it's not based in any factual framework. There are 68 vaccines, 2 promising antiviral agents, 7-8 preventive agents, 3-4 indirect agents in clinal trials. By the end of October about our solutions war chest will be reloaded.

Worst-case scenario: we will all be vaccinated by June 2021. In the meantime, there will be vaccines for essential workers in December of this year (including NHL players?). Thus worst-case scenario of the NHL, another 6 months of waiting to play, and 1 year of delay. They easily did that during the lockout year.

Franchine folding - about 0% chances of that happening. There are too many billionaires at the door.

Quebecor is growing fast, while this is happening...
Worst case scenario ? We can't develop a good vaccin... It's not 100% sure we'll succeed... Never ever had a vaccin for a human coronavirus.
 
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SOLR

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Worst case scenario ? We can't develop a good vaccin... It's not 100% sure we'll succeed... Never ever had a vaccin for a human coronavirus.

We never really tried to develop a vaccine for most coronaviruses. This virus does not mutate fast like HIV or Influenza. Scientifically this is not a challenging virus to create a vaccine for.

It's 100% sure we'll have weak 50% protection vaccines (usually these vaccines are not commercialized). There's 20 trillion/year depending on it.

The problem with vaccines development isn't that we are not getting vastly better at it, is that the market doesn't reward those investments in any way. Thus we are not trying to develop many vaccines that we should. We had prototypes for SARS, we didn't finish them because it went away...something needs to change.
Governments have to become serious about funding vaccine research, development and production. For crying out loud we've been short of yellow fever vaccines for the past 8 years and we can't even manufacture enough dose because the African market can't pay for the costs...it's ridiculous.
 

CHfan1

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Of course I would invest in an NHL team when I can get a 25% discount (like any buyers would get right now). That discount is the cost of running a season at the same salary cap without any revenues for 1 year.

Years? It's delusional to think that, it's not based in any factual framework. There are 68 vaccines, 2 promising antiviral agents, 7-8 preventive agents, 3-4 indirect agents in clinal trials. By the end of October about our solutions war chest will be reloaded.

Worst-case scenario: we will all be vaccinated by June 2021. In the meantime, there will be vaccines for essential workers in December of this year (including NHL players?). Thus worst-case scenario of the NHL, another 6 months of waiting to play, and 1 year of delay. They easily did that during the lockout year.

Franchine folding - about 0% chances of that happening. There are too many billionaires at the door.

Quebecor is growing fast, while this is happening...

It’s not just about a vaccine, the economy has tanked throughout North America and unemployment rates are horrible. How long will it take for that to come back so people can spend money on sports.
 
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BLONG7

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It’s not just about a vaccine, the economy has tanked throughout North America and unemployment rates are horrible. How long will it take for that to come back so people can spend money on sports.
Right now, just imagine who will be the first pro sport, suggesting 20-30-40 thousand people all get together, and go watch a game...? Pro sports will possibly get back, but it wont be normal, or in front of their fans....let's hope they get back playing soon, but none of us can be sure, of what the new normal will be . The TV will be the safest bet to watch a game.
 

Habs

We should have drafted Michkov
Feb 28, 2002
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Of course I would invest in an NHL team when I can get a 25% discount (like any buyers would get right now). That discount is the cost of running a season at the same salary cap without any revenues for 1 year.

Years? It's delusional to think that, it's not based in any factual framework. There are 68 vaccines, 2 promising antiviral agents, 7-8 preventive agents, 3-4 indirect agents in clinal trials. By the end of October about our solutions war chest will be reloaded.

Worst-case scenario: we will all be vaccinated by June 2021. In the meantime, there will be vaccines for essential workers in December of this year (including NHL players?). Thus worst-case scenario of the NHL, another 6 months of waiting to play, and 1 year of delay. They easily did that during the lockout year.

Franchine folding - about 0% chances of that happening. There are too many billionaires at the door.

Quebecor is growing fast, while this is happening...

I believe you are incorrect on many levels, and I am not trying to trash you. Your projections for a vaccine are way off, and billionaires aren't buying NHL teams and really never have, corporations do. Unless the NHL had a NFL type of tv deal, they are going to be in big trouble. It will take years for fans to return to packed NHL arenas in the winter. People will be very leary if its the 'flu' going around, or a mutation of Covid come the winter months.

Until they provide some sort of 30 second test at the gates, its going to be a long haul. My neighbor is one of the leads on infectious disease in BC and a pretty respectable surgeon, he rolls his eyes at an Oct solution on the medical front. He thinks next summer is more of a timeline, but the good news is he also believes the regular flu will take a beating this year because of the lack of travel and people paying attention to their own symptons.

Side note - I'm a part owner in a chl team, have been for 7 years, I do not believe we will be playing hockey till next march in the WHL, which makes it a total loss for the season.
 

CrAzYNiNe

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He thinks next summer is more of a timeline, but the good news is he also believes the regular flu will take a beating this year because of the lack of travel and people paying attention to their own symptoms.

How does this matter in the long run? I thought of the same thing given we aren't transmitting the flu considering we shouldn't be sharing anything. I think for a few years itll keep the numbers down for people transmitting the flu, but are their other benefits?
 

SOLR

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I believe you are incorrect on many levels, and I am not trying to trash you. Your projections for a vaccine are way off, and billionaires aren't buying NHL teams and really never have, corporations do. Unless the NHL had a NFL type of tv deal, they are going to be in big trouble. It will take years for fans to return to packed NHL arenas in the winter. People will be very leary if its the 'flu' going around, or a mutation of Covid come the winter months.

Until they provide some sort of 30 second test at the gates, its going to be a long haul. My neighbor is one of the leads on infectious disease in BC and a pretty respectable surgeon, he rolls his eyes at an Oct solution on the medical front. He thinks next summer is more of a timeline, but the good news is he also believes the regular flu will take a beating this year because of the lack of travel and people paying attention to their own symptons.

Side note - I'm a part owner in a chl team, have been for 7 years, I do not believe we will be playing hockey till next march in the WHL, which makes it a total loss for the season.

We'll see, I think you make many assumptions wrong (not trying to thrash you either).

Base on the level of asymptomatic spread herd immunity will kick in without vaccine at some point faster than most think. For example, I'm waiting for the antibody test, I think I have had it. Many many did, starting in November. We need more facts about residual immunity, that's true.
With an R0 of 3, an herd immunity of around 50% is sufficient to reduce it around R0 of 1. Thus no longer "dangerous".
With any vaccine and sufficiently potent antiviral, the R0 will be under 1 and the virus will disappear rapidly.
Life will feel normal around a herd immunity of 50
Just like after SARS, things will regress to the mean quickly.

Companies or Billionaires: that's just a play on words, they are mostly the same thing. Quebecor vs. Peladeau. etc.
Sports teams are the toys of billionaires as they can use the losses to save on taxes! More losses = less taxes somewhere else.

Prediction: Next winter, the Flu will be the main killer again and its doesn't seem to be stopping anything.
 

SOLR

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It’s not just about a vaccine, the economy has tanked throughout North America and unemployment rates are horrible. How long will it take for that to come back so people can spend money on sports.

Sports spending is done at 0% by the people who are losing their jobs right now. 0%

Businesses (corporations) and upper middle class are buying, the economic situation doesn't really change for this group.
 

CHfan1

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Apr 23, 2012
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Sports spending is done at 0% by the people who are losing their jobs right now. 0%

Businesses (corporations) and upper middle class are buying, the economic situation doesn't really change for this group.

You think it’s only the lower class losing their jobs? That’s not true.

Also businesses are not going to pull in the same revenue as before for quite awhile.

The economy is going to struggle, yes, it’ll hit the poor the hardest but a lot of people won’t have extra money to spend on sports.
 

SOLR

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You think it’s only the lower class losing their jobs? That’s not true.

Also businesses are not going to pull in the same revenue as before for quite awhile.

The economy is going to struggle, yes, it’ll hit the poor the hardest but a lot of people won’t have extra money to spend on sports.

Upper middle classes will find a job faster...they always do.

I work for many startups,

Startup A layoffs employee X
Startup B hires employee X the day after.

Developers, data scientists, growth, executives. This is what is happening in tech, because we need 1 000 000 more of these workers. It doesn't matter how bad is the economy...
 

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