NHLPA: 11-12 cap ~$62M; late May Daly: ~$63.5M cap;

[LadyStanley]

http://www.nypost.com/p/sports/more_sports/players_face_tough_cap_call_TlV0Dk4ExNgZjPtHhkNFFI

The NHLPA has told agents that the union projects a salary cap of approximately $62.2 million next season if the players vote to trigger the 5-percent escalator, Slap Shots has learned.
That represents an increase of $2.8 million from the current $59.4 million cap, or approximately 4.7 percent. This means that, 1) the NHL's "record" revenues have not increased by the 5 percent the players voted to bump the cap for this season; and, 2) the cap would remain flat or even decrease slightly for the first time if the players opt not to adopt the inflator for next season.

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Click to read more...

 

[Retail1LO*]

Interesting. How frequently can the players vote to use the escalator?

If true, doesn't this put the players in a decent position to not got back the money they put in escrow? Trigger the escalator, and see a decrease in revenue? Doesn't necessarily sound like a good situation. Sounds like the majority of players would be putting salary at risk so a few more can get paid.

 

[The Fuhr*]

Aren't the players already paying like 18-20% in escrow?

 

[Retail1LO*]

Aren't the players already paying like 18-20% in escrow?

I don't know, but it would seem that this situation would put them at risk of some percentage not coming back, regardless.

 

[RangerBoy]

Escrow went down during the season

Good news (relatively speaking), NHL and NHLPA have set 3rd quarter escrow rate @ 10%, down from. 13.5% in 2nd qtr and 17% in 1st qtr.

https://twitter.com/#!/TSNBobMcKenzie/status/29587131387092992

NEWS: NHL players' escrow deductions for 3d quarter reduced to 10 percent, Post has learned. Canadian dollar continues to provide benefits.

https://twitter.com/#!/NYP_Brooksie/status/30755970388860928

The Canadian dollar closed at 1.0445 on Friday.

http://www.bankofcanada.ca/en/rates/exchange.html

With the no bonus cushion and no 5% increase,there will be zero player movement next season. Can't have both. The PA has never voted against the 5% increase. The cap was supposed to increase from $56.8M last season to $57M-$58M but it went up to $59.4M. Without the 5%,the cap would have increase by a $150,000-$200,000 this season. The 5% is applied to the midpoint.

The report by Brooks today is what the NHL said in December

NHL commissioner Gary Bettman gave the governors a report at their annual meeting on Monday of what the league’s executives believe the cap will be next season, based on revenue so far in 2010-11. While Bettman did not make an official announcement, word around the annual meetings is that the cap could rise by as much as $3-million (all currency U.S.) next season to $62.4-million.

The $3-million increase is also based on the assumption the NHL players will invoke their right to bump the projected cap by 5 per cent. They have done so every year since the collective agreement was reached in 2005.

http://www.theglobeandmail.com/spor...could-rise-more-than-expected/article1826348/

The Canadian dollar is trading higher during this season than last season. It's traded close to $1 during the fall and traded over $1 since January. All the way up to nearly $1.05.

 

[King Woodballs]

eeesh up again
at least the LEAGUE is making money

 

[GKJ]

What would that put the floor at? Assuming that the cap is $62M even.

 

[David_99]

What's the new cap floor up to?

 

[Crazy_Ike]

This means that, 1) the NHL's "record" revenues have not increased by the 5 percent the players voted to bump the cap for this season; and, 2) the cap would remain flat or even decrease slightly for the first time if the players opt not to adopt the inflator for next season.

Did there some reason Brooks put "record" in quotations or does he just not understand basic math? In case he hasn't figured it out last year the NHLPA used their 5% escalator just like they will this year and therefore the revenues DID increase almost 5%, and suggesting the cap would go down if they didn't is a disingenuous, even dishonest way of pretending the league revenues aren't as good as they say.

 

[Marc the Habs Fan]

What would that put the floor at? Assuming that the cap is $62M even.

It's always 16 M less than the cap. So 46 M.

 

[Fugu]

Did there some reason Brooks put "record" in quotations or does he just not understand basic math? In case he hasn't figured it out last year the NHLPA used their 5% escalator just like they will this year and therefore the revenues DID increase almost 5%, and suggesting the cap would go down if they didn't is a disingenuous, even dishonest way of pretending the league revenues aren't as good as they say.

How much has the CAD appreciated from last year to this year?

There's real growth and then there's currency appreciation. Daly addressed that point last year, iirc.

 

[BigFatCat999]

What I never see anyone talk about is the idea that agents should use the cap increase like a COLA or inflation.

 

[Bear of Bad News]

What I never see anyone talk about is the idea that agents should use the cap increase like a COLA or inflation.

Do you mean as in, when the cap goes up by X%, my player's contract will also go up by X%?

(I believe) it's prohibited in the CBA.

 

[BigFatCat999]

Do you mean as in, when the cap goes up by X%, my player's contract will also go up by X%?

(I believe) it's prohibited in the CBA.

I mean in UFA negotiations. Ex. Preds fans are assuming Weber will be 7 million to put him in the top 5 of defenseman pay but he could reasonably ask for 8 million because the cap will go up, rev. sharing will go up and he could compare it to percentage of cap vs. actual dollar amount.

 

[mouser]

Interesting. How frequently can the players vote to use the escalator?

If true, doesn't this put the players in a decent position to not got back the money they put in escrow? Trigger the escalator, and see a decrease in revenue? Doesn't necessarily sound like a good situation. Sounds like the majority of players would be putting salary at risk so a few more can get paid.

Every year, but the escalator doesn't compound from year to year. Each year they calculate what the cap should be based on the previous season's revenue, then the NHLPA has the option to increase the cap midpoint by 5%. The next year they start from scratch and calculate it again.

 

[Hamilton Tigers]

How much has the CAD appreciated from last year to this year?

There's real growth and then there's currency appreciation. Daly addressed that point last year, iirc.

Dollars were at par last year this time.

http://usd.exchangerates24.com/cad/history/2010-04-16/

And pretty much the same over this season.

http://www.x-rates.com/d/USD/CAD/data120.html

 

[Hunter Gathers]

Yet another reason that the lockout was Pejorative Slured (mod). A shame we wasted a year of hockey due to this waste of a cap. The upper level will hit 70M soon.

 

[LadyStanley]

Article says that estimated cap is $62.2m (floor would be $46.2m).

For a number of reasons, even though the escrow is a pain, I can't see the NHLPA not voting in the escalator.

 

[Fugu]

Dollars were at par last year this time.

http://usd.exchangerates24.com/cad/history/2010-04-16/

And pretty much the same over this season.

http://www.x-rates.com/d/USD/CAD/data120.html

It's the avg annual rate from 1st Jul to 30 jun. Too lazy to look it up but I think last year was roughly .9 or .94-ish.

 

[Melrose Munch]

Why do we have a cap? How are small markets supposed to meet 46m in floor totals? This is ridiculous.

 

[LadyStanley]

Why do we have a cap? How are small markets supposed to meet 46m in floor totals? This is ridiculous.

They may acquire a player who has low $$ payout but higher salary cap. (And a prospect and/or good pick in "compensation".)

(Recall that the Sharks got a first round pick for taking on the salary cap hit of a not-retired player from NJ.)

 

[Ernie]

Why do we have a cap? How are small markets supposed to meet 46m in floor totals? This is ridiculous.

That's kind of the point. They have to keep up with the rest of the league.

 

[Hawkscap]

Canadian dollar appreciated 4% over last year's average.

 

[Hunter Gathers]

Why do we have a cap? How are small markets supposed to meet 46m in floor totals? This is ridiculous.

The small markets? They were the ones calling for the cap like this and now they are going to have to live with what they got. What, should we cater to them EVEN MORE now? They have gotten tons of concessions from the big market teams -- I don't think they should be entitled to anything more. If they cannot compete where the cap floor is set now, than maybe they should not be in business.

 

[Crazy_Ike]

Yet another reason that the lockout was Pejorative Slured (mod). A shame we wasted a year of hockey due to this waste of a cap. The upper level will hit 70M soon.

You realize even if it did it would STILL be below some team's payrolls in 2004?

Yeah, of course you did.