Quote:
Originally Posted by Locke
Okay, thats my bad, I thought the PA's automatic escalator bump was 5%.
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That's not a 5% increase from last year's cap, though. That is an increase from whatever figure they come up with based on last year's actual HRR. (Last year's cap was based on the HRR from the year before.)
In 2014-15, hockey-related revenues were actually down a bit because of the weak Canadian dollar. The cap would have decreased by 1.5%, but since the PA used their option, it went up by 3.5%.
If HRR were to drop by 5% this year (just for the sake of argument), the PA's 5% would only be enough to offset that and next year's cap would remain exactly the same.