Sens need to cut salary

[Sensinitis]

Says mr who has condra in his avatar

 

[corksens]

The cap ceiling and floor are set by a pre-determined mathematical formula every season based on the previous season's league-wide hockey-related revenue. So if the top 7-8 revenue generating teams in the league started raking in the dough, it will drive up the cap floor and ceiling for all of the teams, regardless of whether their own revenues are keeping the same pace or not.

It's a legitimate concern and the league has no control over where the floor is set each year.

So you think we are so far behind the league-wide average that we'll barely be able to scrape to the cap floor? You actually believe that?

The only reason why the "Senators" aren't viable at the moment would be because the purchase has been so overly leveraged that the carrying costs are astronomical. The market, as is, is undoubtedly profitable.

 

[Nabokov20]

The league knows the finances of the teams - they won't be setting a cap floor that isn't economically viable for all teams.

This is why we have to stop taking all of the Melnyk quotes so seriously.

Seriously, the Florida Panthers just sold for $250 MILLION dollars. You think a team that is "actually" losing $10-14m a year is going to sell for a quarter billion? Not a chance.

then why set one at all. just creates salary inflation, which the fans ultimately pay for.

and yeah, even if panthers were losing that much, they could easily sell for 250million. think about it, the possibility of a team bleeding cash is ripe for relocation at some point down the road (if the product on the ice doesn't change and/or marketing attempts fail) from another ownership group willing to pay a premium because the future cash flows elsewhere will warrant such an overpayment. cook up a discounted cash flow with a long-term horizon in a steady hockey loving market and suddenly the panthers could look like a steal at 250

 

[DefenseMinister]

So you think we are so far behind the league-wide average that we'll barely be able to scrape to the cap floor? You actually believe that?

The only reason why the "Senators" aren't viable at the moment would be because the purchase has been so overly leveraged that the carrying costs are astronomical. The market, as is, is undoubtedly profitable.

Not sure why everyone is so hung up on this as that's pretty irrelevant. Regardless of where the costs are coming from and how "viable" you think the market is if they magically disappeared, it still impacts how much the team owner is willing/able to spend on payroll every season.

He's already shown that he's not willing to spend to the cap anymore (take a look at the payroll for the past 3 years if you need evidence). And he's given indications that he's not sure what will happen when the floor rises at an exponential rate.

So there's a reason to be concerned.

 

[FolignoQuantumLeap]

The pie eyed optimism from the league about the rising cap worries me. Not because of Melnyk's situation but the overall world economy. Things are only going to get worse, especially in the US. The talk of expansion worries me even more.

 

[Sensinitis]

No use in worrying about smthing out of your control and so far ahead. We'll cross that bridge when we get there

 

[Qward]

Panthers sale was based on the understanding they can build a casino beside the rink. Sound familiar? As far as getting under budget, Smith and JOB to Edmonton for a pick and a prospect. We would still have 5 centers that are NHL quality. It would not affect or depth to a large degree. Smith makes 1.5M in actual dollars this season, more each one after that. Shedding Smiths and JOB and bringing up DaCosta saves us over 1M in actual salary.

 

[Filatov2Kovalev2Bonk]

The pie eyed optimism from the league about the rising cap worries me. Not because of Melnyk's situation but the overall world economy. Things are only going to get worse, especially in the US. The talk of expansion worries me even more.

Entertainment dollars tend to be relatively stable though. People love their restaurants, sports, MMOs, movies, whatever. Ottawa is a pretty affluent city as well, it's a cheapish city too. :p

 

[starling]

If it's 2 million dollars how would you cut it? Smith for a pick or prospect?

Yes, please.

 

[Mercurial]

The cap ceiling and floor are set by a pre-determined mathematical formula every season based on the previous season's league-wide hockey-related revenue. So if the top 7-8 revenue generating teams in the league started raking in the dough, it will drive up the cap floor and ceiling for all of the teams, regardless of whether their own revenues are keeping the same pace or not.

It's a legitimate concern and the league has no control over where the floor is set each year.

The increased number of outdoor games are just driving league-wide revenue up too. The PA had a legitimate concern about revenue sharing. We're likely only a few years away from the equivalent of the pre-cap era where a handful of teams are spending to the cap and the rest are just getting by. Leafs still wont win the cup.

 

[Nac Mac Feegle]

Entertainment dollars tend to be relatively stable though. People love their restaurants, sports, MMOs, movies, whatever. Ottawa is a pretty affluent city as well, it's a cheapish city too. :p

Whoa...no. Restaurants are usually the first casualties of a recession.

Ottawa has a fair bit of insulation being a government city, but that also means a severe limit on upper end income.

As for the Panthers, I do believe that huge dollar figure is mainly for the arena? Apparently that is a great venue for events, and having a primary tenant is just a bonus.

 

[OmniSens]

Ahh shut up and take it Melnyk.

Over budget, but yet you wanted to give Alfie a blank check.

 

[MainDotC]

Wayne Scanlan twitter ... Melnyk said it in a media scrum a couple days ago.

https://twitter.com/HockeyScanner/status/383657331760070656 for those questioning the source of this remark

 

[Smash88]

https://twitter.com/HockeyScanner/status/383657331760070656 for those questioning the source of this remark

It just sounds odd. Like he wasn't be serious..

Kind of like the whole Karlsson Forensic crap...

 

[SlapJack]

The pie eyed optimism from the league about the rising cap worries me. Not because of Melnyk's situation but the overall world economy. Things are only going to get worse, especially in the US. The talk of expansion worries me even more.

I have the same feeling, but with concern for other teams that are tight to the cap this year and fans automatically assuming that the cap will be $70M next year and $80M shortly thereafter. The cap exploded by 45% from 2005 to 2008, then remained virtually stagnant the next 3 years.

When the new CBA came out, cap projections for the following seasons actually showed 2014-15 as being less than 2013-14 and then going up. Not sure if things have changed since then.

 

[The Fuhr*]

Z to the minors sounds like penny pinching to me

 

[TheBradyBunch]

Z to the minors sounds like penny pinching to me

 

[jordan7hm]

If Ottawa's payroll is too high at $51,627,500 (the third lowest in the league) Melnyk needs to divest himself of the team.

 

[Topside]

Yeah if 55mil is too rich for Melnyk then this team can't compete with him as an owner.

 

[PoutineSp00nZ]

Z to the minors sounds like penny pinching to me

You have an agenda to slam Melnyk at every opportunity. We get it.

After your fire Murray campaign proved fruitless, i guess you picked a new target.

Look out Cyril Leader! You're next on the Fuhr hitlist

 

[corksens]

Z to the minors sounds like penny pinching to me

Of course it does, the sky is always falling in your world.

 

[lafite]

I could believe that the Sens lose money, but does all the total revenues which I believe belong to Eug figure into the equation? Concession revenues, concert revenues, parking, 67's rent etc. Because without the Sens as the major tenant, none of those revenues would be viable. There is accounting, and then there is accounting.

 

[Tampacuseforever]

Z to the minors sounds like penny pinching to me

You must be part of our fearmongering headline hunting media

 

[pepty]

So you think we are so far behind the league-wide average that we'll barely be able to scrape to the cap floor? You actually believe that?

The only reason why the "Senators" aren't viable at the moment would be because the purchase has been so overly leveraged that the carrying costs are astronomical. The market, as is, is undoubtedly profitable.[/QUO[]TE]

This is unfortunately true-in fact from the start while he was still flush with cash he piled debt on the team.It was a strategy that maybe worked for awhile but now with Biovail gone, his other businesses struggling and after an expensive divorce , the team seems to be way over leveraged.

Has all the debt that Melnyk has piled on the Senators, made it unlikely that the team can be sold?

 

[Qward]

If Pageau gets sent to Bingo and JOB come back because that would save us 600K+ then we know we are in real financial trouble.