Many people view this increase as a step backwards, fearing that we will go back to the pre-lockout days of crazy player salaries, and owners complaining they are not making ends meet.
In my opinion, i think this increase is great news for the NHL, and all stakeholders involved.
In reading Article 50 of the latest CBA, “Team Payroll Range Systemâ€, I am led to believe that the NHL in general is doing quite fine.
Some key points about article 50:
•The Upper and Lower Limits of the Team Payroll will be subject to annual adjustments.
•There is a Fixed relationship between League-wide Player Compensation and Hockey Related Revenue (HRR).
•League-wide Player Compensation will rise or fall in direct proportion to a rise or fall in HRR in that League year.
•The Upper Limit CAN fall from one year to the next – Teams better think twice about “over spending†on an UFA
For those interested, i copy and pasted this section from the CBA
50.4 League-wide Player Compensation, Players' Share, Escrow Account.
(b) "Players' Share," "Applicable Percentage." For each League Year,
there shall be a Players' Share, which shall be equal to the percentage of HRR that the
Players shall be entitled to earn in the aggregate as League-wide Player Compensation.
The percentage applied to HRR in a League Year to determine the Players' Share shall be
known as the "Applicable Percentage." The dollar amount represented by the Players'
Share in a League Year (i.e., League-wide Player Compensation) shall equal (i.e., shall
never exceed nor be less than) the Applicable Percentage of HRR, as calculated pursuant
to this Article 50.
(i) The Players' Share shall be determined as follows:
(A) For the 2005-06 League Year, the Players' Share shall be
fifty-four (54) percent of Actual HRR.
(B) For any League Year (other than the 2005-06 League Year)
for which Actual HRR is below $2.2 billion, the Players'
Share shall be fifty-four (54) percent of Actual HRR for
such League Year.
(C) For any League Year (other than the 2005-06 League Year)
for which Actual HRR is equal to or exceeds $2.2 billion,
but is below $2.4 billion, the Players' Share shall be a
percentage between fifty-five (55) and fifty-six (56) percent
of Actual HRR, as adjusted pursuant to subsection (ii)
below, for such League Year.
(D) For any League Year (other than the 2005-06 League Year)
for which Actual HRR is equal to or exceeds $2.4 billion,
but is below $2.7 billion, the Players' Share shall be a
percentage between fifty-six (56) and fifty-seven (57)
percent of Actual HRR, as adjusted pursuant to subsection
(ii) below, for such League Year.
(E) For any League Year (other than the 2005-06 League Year)
for which Actual HRR is equal to or exceeds $2.7 billion,
the Players' Share shall be fifty-seven (57) percent of
Actual HRR for such League Year.