Quote:
Originally Posted by Oil Stain
McDavid signed for slightly less percent of the cap than Crosby did on his second contract, and for 3 more years.
What a beauty this kid is.
Things will be pretty tight the first few years, but this contract will really pay big dividends towards the end of the term.
|
I am trying to understand where the increase in the cap is going to come from
They signed a 2 billion dollar 10 year deal with NBC that started in 2012. This money helped soften the revenue loss that came with the work stoppage in 2011-2012, but that revenue is baked in and will not increase until 2022 at the earliest
Then a couple years later Rogers announced their 12 year deal that started in 14-15 and runs through 25-26. Again that money is locked in and while the value increases by about 200 million with gradual annual increases over the last 10 years, the increases are only around 20 million a year, which means there is not much money for the increase in that deal.
But they did double the value overnight of the Canadian TV deal, which accounted for the original large increase in the cap in 14-15.
I could see the cap slowing down and basically maybe going up 2 million a year on average for the life of this deal. I think the days of large 5-8 percent increases year over year are over now.
I would be shocked if the cap is worth more than 90 million by the end of this deal.