Something Different?

Discussion in 'Fugu's Business of Hockey Forum' started by Drury_Sakic, Mar 7, 2005.

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  1. Drury_Sakic

    Drury_Sakic Registered User

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    OK.. so I have been taking my(apparently too much) free time here and there.. and a new thought came to me...

    Bare with me, but this is interesting..

    Its a layered cap system..

    Cap Floor is set at 15 million Dollars.

    First Level
    Lux tax of .50 on the dollar from 32 million up to 39.5 million
    First Hard Cap set at 39.5 million

    Second Level
    Lux tax of 1.00 on the dollar from 39.5 up to 42.5 million
    Second Hard Cap set at 42.5 million

    Third Level
    Lux Tax of 1.50 on the dollar from 42.5 up to 45.5 million
    Third Hard Cap set at 45.5 million

    Fourth Level
    Lux Tax of 2.00 on the dollar from 45.5 million to 47.5
    Final Hard Cap at 47.5 million

    All teams qualify for first Level

    For each season at the Second Level, you give up a team choice of either a 3rd and 5th round Draft pick or a 2nd round Draft pick in that seasons draft.

    For each season at the third level, you give up a 1st round pick and a 5th round pick in that seasons draft.

    For each season at the Fourth Level, you give up your 1st, 2nd, and 3rd round Draft pick.

    All Draft picks are then redistributed to teams staying below the 39.5 million Cap via lottery. No team shall gain more than one draft pick in each season unless all teams have been given one. All Lux tax money is distrubited equally to all teams below the 39.5 Cap Level.

    Each team is alowed to place 1 player on IR cap exempt a week before the trade deadline, totaling no more than 4 million dollars exempted from the cap. 2 additional slots are alowed for season ending injurys that make only 50% count against the cap. The players placed on IR are not allowed to be activated untill the post season is over and the team is back below cap level.

    Teams may write in up to 4 million dollars max in contract bonus money for reaching the Stanley Cup Finals(4 mill total).

    Arbitration is a 2 way street. Both sides can walk away from arbitration results(Player only once in carrier). Awards cannot be more than 200% more than the players last contract, cannot be less than 50% of last contract.(I am a little rough with numbers here)

    Owners have option out of Arbitration at any time. Cap moves to a Hard 55 million and UFA is lowered to age 28.

    FA is left at Current Age.

    -------
    I know they arn't really "Hard Caps" but...


    The base here is that if you spend... you may win short term, but long term it not only hurts you, it helps teams that are better with the cash flow(as they get your draft picks). It also hinders big spenders from making moves at the deadline, as if they are over the First Cap level they have already spent picks in that years draft. Would any team be crazy enough to deal away a 1st, 2nd, and 3rd round pick to have a payroll of 47.5 million? Maybe.. if you get that monster dynasty to come together, or you really wanted to keep your current roster, it might be worth it. But it comes at a high cost both to the pocketbook and team stock.

    IR situation is modified from owners last offer to allow for teams to recover in some way from an injury to a major player or a string of injurys.

    I am not really sure on the arbitration side of the coin. Owners get an option to buy out at REALLY high price if they want to can it at any time.

    UFA is not an issue.

    The Lux Tax system helps create a system in which at least some money would go from the big spender/big market teams to the smaller market/smaller spenders.

    I think the NHL should alow for SCF bonus money in some way shape or form outside of the cap. Logic being, if a team reaches the Cup Finals, they will have had at least 8 Home Playoff games in that year, thus have a larger revenue pool to pull from.


    Be Kind..

    Thoughts?
    :dunno:
     
  2. me2

    me2 Calling out the crap

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    The problem with the tax at a low rate is it hurts the little clubs and not the big clubs. Take Tampa, next year they might be able to bankroll a $40m payroll and not a cent more. $40m will let them resign 100% of their players. With the tax, that $40m becomes $37.5m and $2.5m in tax. At $37.5m they have to trade players. To a wealthy club that amount of tax doesn't rate a blip.



    Drop the tax up to $40 and the rest could work.

    I'd consider dropping the bonus for reaching the SC finals. This would appeal more to wealthy clubs than poorer club and might prompt talent to focus on teams that can pay bonuses. I don't think its a great issue so long as the bonus counts against the teams spending (is taxed picks and $) if they go into the higher levels.
     
    Last edited: Mar 7, 2005
  3. Drury_Sakic

    Drury_Sakic Registered User

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    True..

    But thats(the .50 tax from 32) going off of what the NHL had in its last offer...

    soo...

    :confused:
     
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