Quote:
Originally Posted by getbak
League minimum will still be $775,000.
Under the new CBA, the cap can only rise $1 million per season until the players' escrow debt is paid off. After that, the new formula will kick in, which is to take the final HRR from 2 years prior, divide that number in half to get the players' share, divide that by 32 to get the per team "midpoint", then add 15% to calculate the cap and subtract 15% to get the floor.
For example, according to Bettman, league revenue in 2021-22 was $5.2 billion. Using that formula, next year's cap should be $93.4 million... but it will only be $83.5 million because the players' debt isn't fully paid off.
Also, the new CBA puts a limit on the year-over-year growth of the cap at 5%. This means it will take a few more years for the cap to catch up to the calculated amount and we can safely assume the cap will increase 5% per year for the foreseeable future after next season.
Unless the league and PA come to a last minute compromise, next year's cap will be $83.5. Then, if we assume 5% annual growth for the next two seasons, the 2024-25 cap will be $87.675 million and the 2025-26 cap will be $92.06 million.
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Thank you for this.
And knowing this, I think the strategy should be to get guys signed to long term deals. Kadri is expensive at $7M, but if the cap goes up by 5% per year, it looks a lot less painful in 3 years.
$7M is 8.4% of next year's cap, then 8.0% in 24/25, then 7.6% in 25/26 (that is the equivalent of $6.25M this year)
The same declining ratios would apply for Lindholm (and everyone else, obviously). The contracts that look expensive now, are going to look good in a few years. We are already starting to see some players take short term deals so that they can get paid big in 2 or 3 years, and I'll bet we see more and more players doing this.
Get in front of it and sign Lindholm right now.