Questions about the cap

Discussion in 'Fugu's Business of Hockey Forum' started by egregoir, Aug 14, 2005.

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  1. egregoir

    egregoir Registered User

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    I'm still trying to understand the NHL salary cap.
    Let's take the Flames as an example: Jarome Iginla is the most paid player on their roster, earning 7 millions/year.
    Knowing that a player cannot earn more than 20% of the team's payroll, will this means that the Flames should have a minimum payroll of 35 millions?

    If that is the case, I'm wondering how they will manage to reach the 35 millions level: The Flames have already 19 players signed for a total of about 31 millions, with no big names left to signed.

    By the way, how many players are registered as part of the cap?
     
  2. Skk82

    Skk82 Registered User

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    the maximum salary for an individual player is 20% of the cap (next year: $39 million cap for teams, so .2 * 39 = $7.8 max. salary for a player). it doesn't matter, in this instance, what the team's payroll is.

    so, conceivably, the flames could pay iginla $7 million a year and only have a payroll or $25 or $30 million. iginla would earn more than 20% of his team's overall payroll, but the rule is no player is allowed to earn more than 20% of the cap.
     
  3. MojoJojo

    MojoJojo Registered User

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    20% of the cap vs payroll has got to be the most misunderstood aspect of the new CBA.
     
  4. Resolute

    Resolute Registered User

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    Indeed.

    The "team cap" refers to the maximum any team can spend: $39 million this year. This is the same for all teams.

    What any team chooses to actually spend does not change the team cap.
     
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