[powderjunkie]

Originally Posted by iggy_oi

The salary cap is fixed at $81.5M the next few seasons based on a 32 team league the most player salaries can be is $2.6B, so if in any of those seasons revenues are over $5.2B they would end up with more than 50%. It is my understanding that the MOU does not include any provisions which would force the league to share any of that excess with the players, but if you or anyone else has seen anything to confirm otherwise please share that here.

From the MOU:

2020/21:
• Upper Limit = $81.5 Million
• Midpoint = $70.9 Million
• Lower Limit = $60.2 Million
Thereafter (subject to the provisions above regarding the
Extension Year):
• Upper Limit will remain at $81.5 Million until Preliminary
HRR for the just completed League Year surpasses $3.3
Billion.
• For any League Year where Preliminary HRR is between
$3.3 Billion and $4.8 Billion, the Upper Limit for the
following League Year shall be between $81.5 Million and
$82.5 Million on a pro rata basis (e.g., if Preliminary HRR
is $4.05 Billion, the Upper Limit will be $82 Million).
• Once Preliminary HRR for the immediately preceding
League Year surpasses $4.8 Billion, the Upper Limit will
increase by $1 Million per League Year until the Escrow
Balance is paid off.
• The parties can agree to increase the Upper Limit in
excess of $1 Million in order to allow for a smoother
transition into the ‘Lag’ formula.
• The parties agree to discuss the Upper Limit in good faith
in the event projected or Actual HRR decreases on a year
over year basis.
Lag Formula (subject to the provisions above regarding the
Extension Year):
• Parties to discuss and approve detailed mechanics and
implementation of the ‘Lag’ formula subject to the
following general parameters:
o Introduce the ‘Lag’ formula after the Escrow
Balance has been repaid but not earlier than
establishing the Upper Limit for 2023/24 League
Year.
o Apply the current Payroll Range formula except
for the following changes:
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(1) Use HRR from the League Year two years prior
(instead of Preliminary HRR from the immediately
preceding League Year) (i.e., using HRR for Year 1
to set the Payroll Range for Year 3).
(2) Remove the Growth Factor (i.e., do not adjust
the resulting Midpoint (based on Final HRR per (1)
above) upward to yield the Adjusted Midpoint as
provided for in Section 50.5(b)(i)).
o Maximum year-over-year increase in the Upper
Limit will be the lesser of 5% and the trailing twoyear average HRR growth percentage (measured
using Final HRR from the League Year four years
prior, Final HRR from the League Year three years
prior, and Preliminary HRR from two years prior
and after taking into account any FX impact
adjustments)
o Except for the 2026-27 League Year, minimum
year-over-year increase in the Upper Limit is the
lesser of 2.5% and the trailing two-year average
HRR growth percentage. (measured using Final
HRR from the League Year four years prior, Final
HRR from the League Year three years prior, and
Preliminary HRR from two years prior and after
taking into account any FX impact adjustments)
o For any immediately upcoming League Year for
which the NHL and NHLPA anticipate a Shortfall
(as defined in Section 50.11(a)(i)) based on
Preliminary or projected HRR, the parties may
(but are not required to) increase the Upper Limit
for that upcoming League Year by up to an
additional 5% (over and above the increases
dictated by the provisions above) so long as both
the NHL and NHLPA agree to do so by the June
15th prior to that start of that League Year.
o The remaining aspects of the Payroll Range (i.e.,
the Lower Limit and Midpoint) shall in all
instances be set in accordance with the terms of
the current CBA.

There's a lot here, but basically, if things rebound quickly, then the cap increases with it (once escrow balance is paid off).