What would happen if the cap went down?

[paulhiggins]

What economics could cause the cap to go down?

What would the new NHL look like if the cap fell? I can see some teams losing good contracts because they have to keep their bad contracts.

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[Fourier]

The new CBA might mean a lower cap.


But the worst economic mess of my lifetime did not drop the cap, so I am not sure how much we should worry about this now.

 

[Kimi]

I want to know what happens if all the teams are spending to the cap, more or less, and then the cap goes down the next season. Normally those over would have to trade players for picks to the teams who were closer to the floor; but what happens if there's just flat out more money in the league than it can hold? Or what if the lower cap teams are at the max number of contract cap, and they don't want to trade away the younger players? Basically the league is locked into breaking the cap.

Or what is when a team is trying to trade away players, they can't get a deal done? Like all their players suck or something.


About zero chance of it happening, but it's possible I guess.

 

[hatterson]

The new CBA might mean a lower cap.


But the worst economic mess of my lifetime did not drop the cap, so I am not sure how much we should worry about this now.

I think a lot of the reason for that was the comparative rise in the Canadian Dollar. I'd be interested to see how league revenues would have changed year to year if everything was converted to Canadian Dollars instead of the other way around

 

[Shrimper]

I wouldn't be surprised to see the cap floor lowered in the future.

 

[WalterSobchak]

I was thinking this very thing earlier this week. The answer is simple really, imo. Rollback contracts amd expand or extend buyouts.

Just like they had to do last time.

 

[Jolli]

EDIT: I didn't even read the title

 

[Confucius]

What economics could cause the cap to go down?

What would the new NHL look like if the cap fell? I can see some teams losing good contracts because they have to keep their bad contracts.

Depends on how much it dropped. If it dropped too far, there may be an opening for a rival league. For example if the League determined we need a 35 million cap. Some investors may believe we can make money in about a dozen cities even with a 70 million dollar cap.

One league has a team payroll of 70 million one has 35 million. After a couple of seasons, which league would have the best players?

So yeah the cap may be able to drop but not too much I'd think.

 

[Confucius]

I think a lot of the reason for that was the comparative rise in the Canadian Dollar. I'd be interested to see how league revenues would have changed year to year if everything was converted to Canadian Dollars instead of the other way around

That's interesting, maybe the league should change, so that players are paid in Canadian dollars. If the Canadian dollar drops in the future it's a bonanza for U S teams and no hardship to the Canadian teams, since everything remains status quo.

 

[straka91*]

Never going to happen, with Bettman revenues would increase even if we went into the depression of depressions. More revenues=more cap.