[Rumour] Giordano Extension. Kypreos: Starting point is $72 million over 8 years

[bax]

Originally Posted by DJones

Am I missing something? Gio wasn't there for the play-offs. After that Wideman and Stajan are the only noticeable differences.



Hamilton, Franson, plus the young guys developing seem like a massive improvement.

Well assuming Poirer and Arnold aren't on the team this year, there are two rookies among the forward ranks. Franson is a considerable downgrade from Wideman considering how he played last year. Gio was the best defenseman in the world last year for 60 games, you can't discredit that.

The bottom pairing might be terrible considering we don't even know if either of those two guys will be NHL players at all.

And as good as Hamilton is, he is not on Gio's level from last year. Could he gets there? Maybe, but it's far from definite.

Basically that line up is banking a lot on young players developing into stars. I hope it happens, but that's a best case scenario. For me, the bottom 4 defense looks like it could cost the team a lot of games. Like I said, best case scenario that team is as good as last years, but that's only good enough to barely make playoffs.

One injury and you're bumping nakladal into your top 4 (which is already pretty suspect with Franson and Russell as your second pairing imo)

[ricardodw]

Will the Flames be able to spend to the cap? The contracts are in USD. Revenues are in CAD.

August 7,2014 1 CAD bought 91.56 cents USD, Raymond was getting paid 3.44 M CAD

August 7,2015 1 CAD buys 76.21 Now Raymond is getting paid 4.13 M CAD a $693,000 Cad increase...

Raising the ticket price of every home game by $1 raises about 780,000 CAD and pays for Raymonds raise.


Anybody have an idea on the 20% drop in revenue from the 7 Canadian franchises will have on the cap?

[GioforPM]

Originally Posted by ricardodw

Will the Flames be able to spend to the cap? The contracts are in USD. Revenues are in CAD.

August 7,2014 1 CAD bought 91.56 cents USD, Raymond was getting paid 3.44 M CAD

August 7,2015 1 CAD buys 76.21 Now Raymond is getting paid 4.13 M CAD a $693,000 Cad increase...

Raising the ticket price of every home game by $1 raises about 780,000 CAD and pays for Raymonds raise.


Anybody have an idea on the 20% drop in revenue from the 7 Canadian franchises will have on the cap?

I don't think revenue is a problem the Flames have right now. It's only a cap issue.

On that point, everyone seems to assume a zero cap increase going forward. Even this year, when people predicted a zero increase or maybe a decrease, it went up a bit. The average increase is much higher.

[ricardodw]

Originally Posted by GioforPM

I don't think revenue is a problem the Flames have right now. It's only a cap issue.

On that point, everyone seems to assume a zero cap increase going forward. Even this year, when people predicted a zero increase or maybe a decrease, it went up a bit. The average increase is much higher.

Why would you think revenue is no problem? What would the profit made by the Flames last year? Any idea? Once revenue drops below expenses a problem will present itself.


In the calculations on the Flames 2016-17 cap crunch it the general assumption was a 5% cap increase was in the works...

Link to worksheet maintained by InCoGnEtO

If the cap stays at 71.4 rather than the 74.9 the Flames would right against the cap with No Russell, No Hudler and Gio at 7.5M.

The 20% exchange rate has happened since this time last year. The exchange rate increase to the USD since Jan 1,2015 is 13%.

[Textcritic]

Originally Posted by ricardodw

Will the Flames be able to spend to the cap? The contracts are in USD. Revenues are in CAD...

Is this a serious question?

As for the impact of the low dollar, I would imagine that CAD revenues account for more than a third of league-wide revenues, which would mean a reduction of about 6–7% on the whole. I don't think it will have a dramatic effect on the cap for next season—at most, it may drop by 3–5%.

[bax]

Originally Posted by ricardodw

Why would you think revenue is no problem? What would the profit made by the Flames last year? Any idea? Once revenue drops below expenses a problem will present itself.

Owners of sports teams have billions of dollars. Most owners aren't doing it to turn a profit.

[CroFlames]

Exactly. I'm pretty sure if the owners felt like they were on the cusp of a championship, they'd be willing to take a small hit to their profit to secure the win.

This of course despite the fact they would make a GD killing during the playoffs if they went all the way.

[Strange Brew]

Originally Posted by GioforPM

On that point, everyone seems to assume a zero cap increase going forward. Even this year, when people predicted a zero increase or maybe a decrease, it went up a bit. The average increase is much higher.

Assuming an average cap increase for next year would not be wise IMO for cap planning purposes. A very small increase maybe. Teams that keep some flexibility and room will be well positioned.

[dino7c]

Originally Posted by Strange Brew

Assuming an average cap increase for next year would not be wise IMO for cap planning purposes. A very small increase maybe. Teams that keep some flexibility and room will be well positioned.

we hear this year after year yet the teams that are supposed to be in big trouble always find a way out of it. Chicago is always right at the cap and they seem to do alright

[heep223]

Originally Posted by Textcritic

Is this a serious question?

As for the impact of the low dollar, I would imagine that CAD revenues account for more than a third of league-wide revenues, which would mean a reduction of about 6–7% on the whole. I don't think it will have a dramatic effect on the cap for next season—at most, it may drop by 3–5%.

This is pretty significant I'd say, considering that many teams model in a slight increase in the cap every year in their long term planning. And the drop in CAD certainly does have an obvious impact on the Flames as Ricardo points out, revenues are in CAD and payroll is in USD. This has a significant detrimental impact on their bottom line. Though I agree that it's silly to wonder whether it will impact the Flames ownership group as to whether they'll spend to the cap - they will and they've given the green light over and over to do so, regardless of business conditions.

[ricardodw]

Originally Posted by Textcritic

Is this a serious question?

As for the impact of the low dollar, I would imagine that CAD revenues account for more than a third of league-wide revenues, which would mean a reduction of about 6–7% on the whole. I don't think it will have a dramatic effect on the cap for next season—at most, it may drop by 3–5%.

so there would be no problem in your mind if the Cap drops from 71.4 back to 69M? The Flames current cap spending for this year is 68.8.

Are you making a serious post or just posting idiocy so that other posters can clearly see that you are not worth reading?

[Hackey]

Ohhhhhhhhhhhhhhh. Bang! Bang! Bang!

[Robbob]

I don't see what the fuss is about with no agreement. We aren't anywhere close to any sort of deadline (artificial or otherwise) for the parties to be forced into making any sort of agreement. Either side isn't going to seriously negotiate anything until training camp. I'd be more inclined to worry if it was October 10.

[Bingo]

last I heard the Flames have had a pretty solid currency hedging policy too, so to assume they are just floating a 70M payroll on daily FX changes would be a huge stretch.

[GioforPM]

[QUOTE=ricardodw;5389661]Why would you think revenue is no problem? What would the profit made by the Flames last year? Any idea? Once revenue drops below expenses a problem will present itself.


QUOTE]


http://www.forbes.com/teams/calgary-flames/

[Lanny_McDonald]

Originally Posted by edslunch

That is one weak, inexperienced lineup. Hello lottery.

Also, if you're trading Gio at his peak shouldn't you plan to get a good player back?

I think people get way too focused on the veteran thing. How many games or seasons does it take before someone becomes a veteran? Three seasons enough? I would think that by the end of this season you would see some our young guys become our veterans and leading the team anyways. I really don't see Matt Stajan being a huge influence on guys like Gaudreau or Monahan going forward. They proved themselves pretty capable of dealing with the grind and pressure of last season. I think we'll be okay, especially if we sit on the likes of Hudler, Frolik, And Russell around. If we absolutely need a grey beard around we can certainly do better than the vets we have eating up cap space playing on the 4th line.

[heep223]

Originally Posted by Bingo

last I heard the Flames have had a pretty solid currency hedging policy too, so to assume they are just floating a 70M payroll on daily FX changes would be a huge stretch.

I've wondered about this, it would make a lot of sense for them to do so. And it would be pretty simple to implement.

But still, no question a weak CAD hurts them and hedging comes with a cost.

[Benched]

[QUOTE=GioforPM;5389797]

Originally Posted by ricardodw

Why would you think revenue is no problem? What would the profit made by the Flames last year? Any idea? Once revenue drops below expenses a problem will present itself.


QUOTE]


http://www.forbes.com/teams/calgary-flames/

pretty cool.

Can't wait to see the updated version.

[GoJetsGo]

Originally Posted by ricardodw

Are you making a serious post or just posting idiocy so that other posters can clearly see that you are not worth reading?

[DJones]

Originally Posted by bax

Well assuming Poirer and Arnold aren't on the team this year, there are two rookies among the forward ranks. Franson is a considerable downgrade from Wideman considering how he played last year. Gio was the best defenseman in the world last year for 60 games, you can't discredit that.

The bottom pairing might be terrible considering we don't even know if either of those two guys will be NHL players at all.

And as good as Hamilton is, he is not on Gio's level from last year. Could he gets there? Maybe, but it's far from definite.

Basically that line up is banking a lot on young players developing into stars. I hope it happens, but that's a best case scenario. For me, the bottom 4 defense looks like it could cost the team a lot of games. Like I said, best case scenario that team is as good as last years, but that's only good enough to barely make playoffs.

One injury and you're bumping nakladal into your top 4 (which is already pretty suspect with Franson and Russell as your second pairing imo)

I am going off the fact that for the last twenty games plus playoffs they looked like a playoff team without Gio.

Hamilton and Fransen easily cover Widemans loss in my opinion. Maybe not this year but in two years I have faith that some of our defensive prospects can be at least solid 3 pairings. Even being pessimistic that seems reasonable.

How good this team could be is completely dependent on development so who knows but in no way is it a lottery team. Unless lottery team means anyway that misses the playoffs.