BOG Meetings: Bettman optimistic 23/24 salary cap could go up to $86 million

[sureLoss]

https://www.sportsnet.ca/nhl/article...r-next-season/

Last summer, teams were told to expect the cap to go up by $1M in 2023-24, then hopefully to $87.5-$88M in 2024-25 and $92M in 2025-26.

However, the commissioner indicated there’s a “good probability” the escrow balance will be paid off by the end of this season. (The escrow balance is money owed from the players to the owners because revenues dropped during the pandemic, almost entirely due to games without fans. It started at $1.1B.)

Bettman is optimistic about revenue targets for 2022-23, saying players paying off the remaining amount is “going to be close.” If the balance is paid, the cap could go to around $86M next season. If not, the projections will revert to the previous totals.

[Canada 02]

Brian Burke let this slip weeks ago on the FAN

[DoubleK]

Where's Iggy_oi at?

I need to gloat.

[MrMike]

So we could potentially see a 8-10m jump in the cap in two seasons. Sure will help resigning Lindholm.

[agulati]

Makes the two contract extensions to Weegar and Huberdeau even better now.

[McG]

I saw an oilers fan tweet about just how fantastic this would be for the oilers. The very next poster pointed out that it wasn’t just the oilers that get a salary cap increase.

It’s more than the water.

[Canada 02]

bump

NHL salary cap expected to rise $1 million for next season, with current revenue projections of $5.7B; that number would need to hit ~$5.85B, for escrow to be paid off and the cap to go up to $86M

The NHL salary cap is expected to be $83.5 million next season, a $1 million increase, because current revenue projections indicate the players will have a remaining escrow debt owed to the owners after this season, NHL Commissioner Gary Bettman said Tuesday.

However, Bettman said if the remaining debt of an estimated $70 million is paid off this season the salary cap would then rise slightly above $86 million next season.

The NHL is estimating revenues to be around $5.7 billion this season, up from approximately $5.4 billion last season. Bettman said the revenue projection would have to increase about $140 million to $150 million for the escrow debt to be paid in full this season.

NHL Deputy Commissioner Bill Daly said two factors could cause an increase in the current revenue projection.

"Currency valuation is one, and then what we generate in playoff revenue," Daly said. "Who is in the playoffs and what are they generating in revenue."

Bettman said the tumbling value of the Canadian dollar, currently $0.74 to the U.S. dollar, factors in marginally in the NHL's revenue projections.

https://www.nhl.com/news/nhl-salary-...on/c-338733940

[topfiverecords]

Originally Posted by McG

I saw an oilers fan tweet about just how fantastic this would be for the oilers. The very next poster pointed out that it wasn’t just the oilers that get a salary cap increase.

It’s more than the water.

$9.24M for Bouchard.

[bobbylouie]

Originally Posted by sureLoss

https://www.sportsnet.ca/nhl/article...r-next-season/

That link and the accompanying Bettman quote seem a bit different than what the NHL.com story says.

The headline at NHL.com says "NHL Salary Cap expected to rise $1 million for next season", with this opening paragraph:

PALM BEACH, Fla. -- The NHL salary cap is expected to be $83.5 million next season, a $1 million increase, because current revenue projections indicate the players will have a remaining escrow debt owed to the owners after this season, NHL Commissioner Gary Bettman said Tuesday.

It goes on to say there are other possibilities, but it uses the word "expected" twice right off the bat.

[nfotiu]

It sounds like hope that the pro sports leagues would acquire the Bally Sports nets has faded, and they are likely heading to a fairly imminent bankruptcy.

https://nypost.com/2022/12/18/mlb-nb...works-sources/

That would leave 12 teams without TV deals or at least severely diminished deals. Probably 500-750 million in combined revenue will evaporate when that happens, and there aren't any obvious solutions to recover that revenue that was built on an unsustainable carriage fee model.

[Rick M.]

What’s the current salary cap?

[transplant99]

Originally Posted by rick m.

what’s the current salary cap?

82.5m

[powderjunkie]

Originally Posted by nfotiu

It sounds like hope that the pro sports leagues would acquire the Bally Sports nets has faded, and they are likely heading to a fairly imminent bankruptcy.

https://nypost.com/2022/12/18/mlb-nb...works-sources/

That would leave 12 teams without TV deals or at least severely diminished deals. Probably 500-750 million in combined revenue will evaporate when that happens, and there aren't any obvious solutions to recover that revenue that was built on an unsustainable carriage fee model.

That sounds way too high for a single year. The article references $60M/yr for the Padres...who I'm sure aren't an amazing viewership draw, but they are the only game in town for a 3M+ metro area. With twice as many games.

Maybe 4 of those NHL contracts are somewhat lucrative: LAK/DET/STL/MIN

The other 8 are probably pretty cheap: ANA/DAL/ARI/FLA/TBL/CAR/CBJ/NAS

And if those contracts do all evaporate, they will be replaced with something, even if it's a lot cheaper. I suspect these regional deals also include in-rink advertising and an exclusive gambling partnership. So even if the TV rights sell cheaper, they can still sell those rink boards and partner with Draft Kings/etc

[Mr.Coffee]

This may not be popular but a rising salary cap and increasing revenues are bad from a fan perspective.

NHL teams don’t need more money. NHL players don’t need more lucrative contracts. Fans don’t need higher prices to access pro hockey or enjoy an event in person, or support their team, etc. We don’t need ads all over the ####ing place constantly and we don’t need gambling ads shoved down ur throat ad nausem. And lastly and most importantly, we don’t need absolutely everything that the NHL does be solely and exclusively for money and hopefully they can actually divert just 1% of their attention and time and care to actually making the game good. Better reffing, not managing outcomes for maximum entertainment and more money.

So when I see this all I think is damn, that sucks.

[tkflames]

Originally Posted by Mr.Coffee

This may not be popular but a rising salary cap and increasing revenues are bad from a fan perspective.

NHL teams don’t need more money. NHL players don’t need more lucrative contracts. Fans don’t need higher prices to access pro hockey or enjoy an event in person, or support their team, etc. We don’t need ads all over the ####ing place constantly and we don’t need gambling ads shoved down ur throat ad nausem. And lastly and most importantly, we don’t need absolutely everything that the NHL does be solely and exclusively for money and hopefully they can actually divert just 1% of their attention and time and care to actually making the game good. Better reffing, not managing outcomes for maximum entertainment and more money.

So when I see this all I think is damn, that sucks.

Great take!!! It's not like the on ice quality is getting better...if anything it's getting more diluted. Ditto for the surrounding entertainment value...

[Jiggy]

Originally Posted by tkflames

Great take!!! It's not like the on ice quality is getting better...if anything it's getting more diluted. Ditto for the surrounding entertainment value...

NHL games are a lot more fun to watch now than the 90's and 2000's. It's about playing with pace and having the puck in the offensive zone instead of sitting back and playing defense. There are a ton of great games every week where in the 90's and 2000's the games would be over if a team had a 2-1 or 3-1 lead.

[Jiggy]

Originally Posted by Mr.Coffee

This may not be popular but a rising salary cap and increasing revenues are bad from a fan perspective.

NHL teams don’t need more money. NHL players don’t need more lucrative contracts. Fans don’t need higher prices to access pro hockey or enjoy an event in person, or support their team, etc. We don’t need ads all over the ####ing place constantly and we don’t need gambling ads shoved down ur throat ad nausem. And lastly and most importantly, we don’t need absolutely everything that the NHL does be solely and exclusively for money and hopefully they can actually divert just 1% of their attention and time and care to actually making the game good. Better reffing, not managing outcomes for maximum entertainment and more money.

So when I see this all I think is damn, that sucks.

Every sport is like this now. It's unfortunate, but what can you do.

[Two Fivenagame]

Great that NHL revenues are healthy so now the NHL can pay for their own arenas, correct?

[Poster]

Originally Posted by Mr.Coffee

This may not be popular but a rising salary cap and increasing revenues are bad from a fan perspective.

NHL teams don’t need more money. NHL players don’t need more lucrative contracts. Fans don’t need higher prices to access pro hockey or enjoy an event in person, or support their team, etc. We don’t need ads all over the ####ing place constantly and we don’t need gambling ads shoved down ur throat ad nausem. And lastly and most importantly, we don’t need absolutely everything that the NHL does be solely and exclusively for money and hopefully they can actually divert just 1% of their attention and time and care to actually making the game good. Better reffing, not managing outcomes for maximum entertainment and more money.

So when I see this all I think is damn, that sucks.

Well this is what the fans demanded when they supported the owners lockout for a salary cap.

The nhl insisted it was a partnership.

They now have a moral & ethical obligation to handle their side of the partnership which is to grow revenues so their partners can continue to grow their salaries.

That’s what they promised when they cancelled the season on the fans.

So here we are.

[Enoch Root]

A moral and ethical obligation, LOL

It's a business, and they are trying to maximize their revenues - like every business