[News] Salary Cap expected to increase

[jg13]

The board of governors will get the update on the 2014-15 salary cap, which will be a substantial raise from the $64.3 million limit this season. That number is expected to be around $70 million, which means the cap gets to its pre-lockout level in the second full season after the work stoppage.

http://www.tsn.ca/nhl/story/?id=438521

[AC]

What will the cap floor be at? Its $44M right now I believe.

We currently have $34.3M committed next year over 13 players (7 F, 5 D, and 1 G).

This doesn't count current signed non-roster players/prospects like Wotherspoon, Sieloff, Knight, Granlund, and Ferland who may potentially make the team next season.

[Caged Great]

Re-sign Galiardi 1.25, Colborne 1.25 Bouma + MacDermid for .7 Berra for 2.5 and Russell for 3 mil. That'll raise the payroll up to 44.5 million for 11 F 6 D and 2 G.

Leaves some room to add a player or two.

[devo22]

Originally Posted by AC

What will the cap floor be at? Its $44M right now I believe.

it's always 16m below the cap, I believe. This year is an exception - they increased the cap from 60.3 (pro-rated last year) to 64.3, but kept the 44.3 floor.

EDIT: I looked it up and actually, the floor is not 16m below the cap, but must be between 16m and 28m below the cap. They will determine a "midpoint" and the cap will be 15 percent above that point, while the floor will be 15 percent below.

As of 2014-15, the formula for calculating the cap and floor will be the same as in the previous collective agreement:

- After estimating NHL revenue for the coming season, the league calculates the "midpoint" of the projected salary range.
- The salary cap is set at 15 percent above the midpoint. The salary floor is 15 percent below the midpoint.
- The range between salary cap and floor cannot fall below $16 million or rise above $28 million.

http://proicehockey.about.com/od/nhl...salary_cap.htm

[Enoch Root]

$70m would put the floor at about $51.7m

[Brannigans Law]

eagerly awaiting the first person to bemoan the lockout, and, how it hardly accomplished anything... demonstrating an utter lack of knowledge on how this cap total is figured out to begin with.

[Mr.Coffee]

this is why the lockout is total BS.

It's too bad it's going up.

[Enoch Root]

So with the 15% methodology, if the cap rises $6m to $70m, the floor will rise about $3.7m. The new TV deal means help for the bottom line for all 30 teams.

[Erick Estrada]

Canadian dollar is predicted to drop into the $0.80's range in the coming year or two which will have a big affect as it's the Canadian teams bringing in a big share of league revenue. Even that Rogers TV deal is in Canadian dollars so if the dollar does worse than anticipated the cap may not grow as expected.

[Daradon]

Originally Posted by Erick Estrada

Canadian dollar is predicted to drop into the $0.80's range in the coming year or two which will have a big affect as it's the Canadian teams bringing in a big share of league revenue. Even that Rogers TV deal is in Canadian dollars so if the dollar does worse than anticipated the cap may not grow as expected.

The '80's' is a big range. I would guess it doesn't dip below the high 80's if it does get into the 80's.

But yeah, it could perceivable make a big difference in the Roger's deal, which of course is the biggest reason for the cap going up.

[Erick Estrada]

Originally Posted by Daradon

The '80's' is a big range. I would guess it doesn't dip below the high 80's if it does get into the 80's.

But yeah, it could perceivable make a big difference in the Roger's deal, which of course is the biggest reason for the cap going up.

TD's predicting the dollar to be $0.90 in 2014. A lot is linked to the US economy but if they get back on track the dollar will drop further.

[The Familia]

Originally Posted by Brannigans Law

eagerly awaiting the first person to bemoan the lockout, and, how it hardly accomplished anything... demonstrating an utter lack of knowledge on how this cap total is figured out to begin with.

I was going to be that guy, but since you have a better idea, please explain to me why there had to be two lockouts in the last decade? What was the purpose and what did it accomplish for either side? I clearly understand that the cap is tied to revenue, and because of Sportsnet, revenue will be going up. I'll give it a few more years when players are at an average of $6 million each and the owners are crying again. I gurantee there will be another lockout at the conclusion of this deal. Must be nice to be rolling in the cash. This league makes me sick.

[T@T]

Originally Posted by Mr.Coffee

this is why the lockout is total BS.

It's too bad it's going up.

Where did you get the idea the lockout had anything to do with the cap amount?

[Oling_Roachinen]

Originally Posted by Mr.Coffee

this is why the lockout is total BS.

It's too bad it's going up.

The cap is a byproduct of the revenue. The more revenue the higher the cap. The league, for the most part, is happy to see a higher cap. Means they are making more money.

What the lockout was about was revenue split between the owners and players. Prior to the lockout the owners could see as low as 43% of the revenue with 57% going towards the players' salaries. Now it's an even 50% for both sides. That's the reason there was a lockout and why it was far from BS. They're dealing with billions of dollars of revenue so those couple percentages are worth literally hundreds of millions of dollars a year for the owners.

Plus some cap circumvention stuff and other cleanup

[strombad]

Originally Posted by Erick Estrada

Canadian dollar is predicted to drop into the $0.80's range in the coming year or two which will have a big affect as it's the Canadian teams bringing in a big share of league revenue. Even that Rogers TV deal is in Canadian dollars so if the dollar does worse than anticipated the cap may not grow as expected.

The Canadian dollar COULD hit as low as 88 cents in the next 6 months, but it'll almost certainly stabilize around 0.93.

A few weeks in the very high 80's is going to have almost zero effect on the NHL.

This is all of course if BoC doesn't raise rates, gold and oil stay low, and other economies keep improving at the current rate.

Saying it'll "drop into the 80's range in the coming year or two" is true, but a bit disingenuous, as the reality is it MIGHT drop into the 80's for an extremely small amount of time in the next 6 months (followed immediately by a rise back into the low/mid 90's).

As far as the economy between the two countries goes, what you see is what you're going to get, more or less. Not that this has a large affect on Canadian teams and the salary cap. It could maybe hurt overall revenues by a percent or two, but at least Canadian teams don't have to worry about a repeat of the 90's.

[Erick Estrada]

Originally Posted by strombad

The Canadian dollar COULD hit as low as 88 cents in the next 6 months, but it'll almost certainly stabilize around 0.93.

A few weeks in the very high 80's is going to have almost zero effect on the NHL.

This is all of course if BoC doesn't raise rates, gold and oil stay low, and other economies keep improving at the current rate.

Saying it'll "drop into the 80's range in the coming year or two" is true, but a bit disingenuous, as the reality is it MIGHT drop into the 80's for an extremely small amount of time in the next 6 months (followed immediately by a rise back into the low/mid 90's).

As far as the economy between the two countries goes, what you see is what you're going to get, more or less. Not that this has a large affect on Canadian teams and the salary cap. It could maybe hurt overall revenues by a percent or two, but at least Canadian teams don't have to worry about a repeat of the 90's.

Disingenuous? Is it or is it not predicted to drop into the $0.80's? I don't think we will see a $0.70 dollar for a long time but even a few cents on the dollar lost is a lot of money in the big picture. All I'm saying is that is that the value of the Canadian dollar plays a big role in league revenues. When the dollar drops so does the revenues of the Canadian teams which have led the league over the past decade.

[TurnedTheCorner]

Fx rates are one of the most difficult things to forecast. I'm sure a whole range of possibilities exists for the CAD/USD exchange rate. It's out of the NHLs hands, and doesn't seem like a topic worth spending a whole lot of time and energy on with relation to fan discussion about the cap.

So, see you all in many pages I guess.

[Erick Estrada]

Originally Posted by TurnedTheCorner

Fx rates are one of the most difficult things to forecast. I'm sure a whole range of possibilities exists for the CAD/USD exchange rate. It's out of the NHLs hands, and doesn't seem like a topic worth spending a whole lot of time and energy on with relation to fan discussion about the cap.

So, see you all in many pages I guess.

Right now no but in the future absolutely and if you don't think Canadian teams aren't thinking about it you are kidding yourself.

[TurnedTheCorner]

I don't know what your reply is supposed to mean. It's difficult to forecast now, but in the future it will be absolutely difficult? The discussion isn't worth a lot of time and energy now but will be in the future? Please elaborate and clarify.

[Erick Estrada]

Originally Posted by TurnedTheCorner

I don't know what your reply is supposed to mean. It's difficult to forecast now, but in the future it will be absolutely difficult? The discussion isn't worth a lot of time and energy now but will be in the future? Please elaborate and clarify.

It's not that difficult as I said earlier it's being forecasted to end 2014 at around $0.90. Is a $0.90 dollar next year relevant to next years cap? Probably not but it will be relevant the following season. Capisce?