If the Flames are forced to uphold Wideman's NMC, isn't the best solution then to trade him to another team? You'd probably have to give up something in order to do it but once the trade is made (assuming he waives the clause), the other team can then opt to not pick up the NMC moving forward so expansion is not a concern for them.
If the Flames are forced to uphold Wideman's NMC, isn't the best solution then to trade him to another team? You'd probably have to give up something in order to do it but once the trade is made (assuming he waives the clause), the other team can then opt to not pick up the NMC moving forward so expansion is not a concern for them.
Regardless of if the Flames were having to protect him or not, many would say trading Wideman to another team is the best solution.
Here is an expansion question/topic I don't think we have touched on, how will this effect the salary cap? Will they just calculate as normal with 30 teams and more or less assume/hope Vegas will draw league average revenue in year 1? Because if an expansion team doesn't draw at least league average revenue in the first year it could cause the cap to drop even with the escalator and would cause even larger escrow payments. Or is the seemingly impossible a possibility and we see a small salary decrease of ~3.2% (~6.4% if there are two teams) to factor in the new jobs created by expansion?
I assume at this point they would calculate the cap as usual and assume/hope Vegas will reach the average in league revenues as I am sure year 1 is the biggest revenue year for a new club due to merchandise sales.
Here is an expansion question/topic I don't think we have touched on, how will this effect the salary cap? Will they just calculate as normal with 30 teams and more or less assume/hope Vegas will draw league average revenue in year 1? Because if an expansion team doesn't draw at least league average revenue in the first year it could cause the cap to drop even with the escalator and would cause even larger escrow payments. Or is the seemingly impossible a possibility and we see a small salary decrease of ~3.2% (~6.4% if there are two teams) to factor in the new jobs created by expansion?
I assume at this point they would calculate the cap as usual and assume/hope Vegas will reach the average in league revenues as I am sure year 1 is the biggest revenue year for a new club due to merchandise sales.
Based on the ticket sales, projected merchandise sales, and primarily the fact that the biggest television contact in the region being based around the LV 51s AAA baseball team, I'm quite sure that if the league expands, they will gain AT LEAST, league average revenue.
Based on the ticket sales, projected merchandise sales, and primarily the fact that the biggest television contact in the region being based around the LV 51s AAA baseball team, I'm quite sure that if the league expands, they will gain AT LEAST, league average revenue.
If not, why bother?
I think they will reach that too, especially in the first year; but this is something the union and the league would have to negotiate before announcing expansion. But keep in mind average revenue doesn't mean at least middle of the pack, it would have to be the average in dollars as the 7 Canadian teams generate 35-40% of HRR for the league. So that would mean Vegas would need to be among the very best in American teams at generating HRR.
As for why bother? Revenue is revenue, the league will pay the players 50% of revenue regardless, so more revenue is more money and the expansion fee sure doesn't hurt.
But I don't want to get into the merits of Vegas as an expansion city, I am curious how they will calculate the cap when expanding since the midpoint to set the cap is 50% of HRR divided by 30. If they divide by 31 instead the cap would very likely drop unless the Canadian dollar bounces back next season.
Last edited by Alberta_Beef; 06-05-2016 at 02:58 AM.
I think they will reach that too, especially in the first year; but this is something the union and the league would have to negotiate before announcing expansion. But keep in mind average revenue doesn't mean at least middle of the pack, it would have to be the average in dollars as the 7 Canadian teams generate 35-40% of HRR for the league. So that would mean Vegas would need to be among the very best in American teams at generating HRR.
As for why bother? Revenue is revenue, the league will pay the players 50% of revenue regardless, so more revenue is more money and the expansion fee sure doesn't hurt.
Why bother?
Because why would 2/3 of 30 owners (20) want to to take in 15M each (even if they don't have to share it with players, only to drain their rosters, and have fans lose interest in their clubs over the next 10 years?
If the NHL doesn't feel LV can keep up to at least average, then they are splitting the pie unnecessarily. I don't think the owners need another Carolina or Phoenix!
Because why would 2/3 of 30 owners (20) want to to take in 15M each (even if they don't have to share it with players, only to drain their rosters, and have fans lose interest in their clubs over the next 10 years?
If the NHL doesn't feel LV can keep up to at least average, then they are splitting the pie unnecessarily. I don't think the owners need another Carolina or Phoenix!
That's why: WHY BOTHER?
as i tried pointing out in my recent edit that wasn't in time, I am not trying to discuss the merit of Vegas an an expansion city. I am trying to understand how they will calculate the cap.
But of course they hope and feel Vegas will help them make more money, but there is no guarantee. They are taking a risk hoping it pans out, much like any investment.
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as i tried pointing out in my recent edit that wasn't in time, I am not trying to discuss the merit of Vegas an an expansion city. I am trying to understand how they will calculate the cap.
But of course they hope and feel Vegas will help them make more money, but there is no guarantee. They are taking a risk hoping it pans out, much like any investment.
I agree.
Obviously due diligence has been done, as it seems more than likely expansion will happen in LV, while QC will be "deferred".
Wouldn't it be funny (embarrassing) for their to be no announcement before the awards, then an announcement of no expansion after a big event in LV! Can't see it happening that way, but it would be fun to watch unfold!
How is it extreme? I left room for players being able to waive them. The pack mentality here is sad and pathetic. 5 posters go after one guy and he tries to word things a bit differently to get his point across and he is suddenly extreme and put down. But I'm done with this argument, enjoy.
Yeah, AB. You're totally a victim.
Do you need some psychological support after this vicious assault you just suffered?
But I don't want to get into the merits of Vegas as an expansion city, I am curious how they will calculate the cap when expanding since the midpoint to set the cap is 50% of HRR divided by 30. If they divide by 31 instead the cap would very likely drop unless the Canadian dollar bounces back next season.
The players, by definition, receive 50% of HRR. There's nothing to negotiate here as any calculation other than HRR / 31 gives one side or another too much revenue.
As far as your certainty that expanding to Vegas would necessarily drive the cap down, consider that the Cap and Floor this season were $71.4m/52.8m, creating a midpoint of $62.1 million - and that is after the NHLPA inflates the cap b 5%.
In order for Las Vegas to be cap neutral, they would have to generate revenues of about $120 million. Even the inept Coyotes had revenues of $92 million in 2014-15 (per Forbes), and Vegas would have the initial hype of new franchise smell.
I doubt the owners are concerned at all about the cap going down slightly, due to Vegas. Assuming that Vegas does in fact generate less than the $120Mish that would be required to maintain the cap as is, the following would result:
First, they get a very tidy expansion fee that they don't share with the players. $500M / 30 = $16.67M USD per team.
Second, the cap drops slightly, causing their payroll expense to drop slightly, despite the fact that their own revenues did not drop. In other words, they make more money.
Third, since the cap is slightly lower, the teams at the bottom financially would lose slightly less money, meaning they would require slightly less in transfer payments. In other words, the healthy teams make even more money.
Jimmy Murphy @MurphysLaw74 26m26 minutes ago
Spoke to two NHL executives today that believe the Carolina Hurricanes could be relocated to Las Vegas & expansion put on hold for now.
Could they do something like they did with the North Stars where they split the Franchise and Quebec gets some of the players and Las Vegas gets some of the players.
Teams split the Carolina price/expansion fee /re-location fee, and they each get a roster that would be a little deeper than if they just did a straight expansion draft.
Then each team would get something like 25 players from the Carolina organization, and another 15 each from the expansion draft (1 per team).
Last edited by SuperMatt18; 06-06-2016 at 04:40 PM.
A possibility would be no expansion and Carolina moving to Las Vegas. It would clear up the family mess in Carolina. NHL could charge big for the re-location and it would balance the two conferences.
As far as your certainty that expanding to Vegas would necessarily drive the cap down, consider that the Cap and Floor this season were $71.4m/52.8m, creating a midpoint of $62.1 million - and that is after the NHLPA inflates the cap b 5%.
Pet peeve, but the NHLPA can't inflate the cap by 5%. This isn't how the escalator works. It's presumed the midpoint will grow by 5%, and either party can opt out of that in which case they have to set a new escalator percentage.
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