[News] Salary Cap 24/25: 87.675M, HRR ~$6.2B

[Paulie Walnuts]

Originally Posted by Enoch Root

That was the prior CBA negotiations. The last one remained at 50%.

Yes I know I’m referring to the lockouts.

That’s why I said the last one was a flat cap and technically not a lockout.

I think I may have called it a lockout by mistake causing the confusion.

[MegaErtz]

When is the last time a top five free agent signed in Calgary?

[Paulie Walnuts]

Originally Posted by MegaErtz

When is the last time a top five free agent signed in Calgary?

Jay Bouwmeester ?

[MegaErtz]

Originally Posted by Paulie Walnuts

Jay Bouwmeester ?

So fifteen years ago, and an Alberta boy to boot. That should tell us something.

[Aarongavey]

Originally Posted by MegaErtz

When is the last time a top five free agent signed in Calgary?

Markstrom and Tanev were both probably top 5 the year they signed with Calgary. So 3 years ago I guess.

[Jay Random]

Originally Posted by MegaErtz

When is the last time a top five free agent signed in Calgary?

For what it's worth, NBC had Jacob Markstrom at #4 on their list of top UFAs in 2020. The Sporting News had him just outside their top 5, as did a couple of other sites.

In terms of contracts signed by UFAs that year, Markstrom was in the top 5 both in total contract value and AAV.

[GreenLantern2814]

Originally Posted by MegaErtz

So fifteen years ago, and an Alberta boy to boot. That should tell us something.

Free agency is a wretched place to build a team.

[Strange Brew]

Originally Posted by Enoch Root

HRR is a function of ONGOING revenues. If you include (one time) expansion fees, you're under water the next season.

Will NEVER happen.

Edit: sorry, been covered by a few posts already

Definition of HRR is most certainly an item that can be negotiated. The players will be looking for a greater share of the revenues the league makes, no matter how you want to characterize it.

Now you have used the word ONGOING which is not in the CBA. Revenue from relocation and grants of new franchises are specifically excluded from HR which was a negotiated item. And when the CBA expires, expect that to be a point for negotiation.

[getbak]

Originally Posted by ComixZone

Interesting part is that HRR being at $6.2B...wouldn't that put the HRR/Salary breakdown at $3.1B for Salary, which actually means the cap per team should be $96.875M.

That's the midpoint of the salary range. The cap is set 15% above the midpoint.

If leaguewide HRR this season is $6.2 billion, using the current cap calculation formula, the cap for 2025-26 should be $111.4 million. Instead, because of the 5% cap on year-over-year cap increases, it will be $92.06 million.

Revenue would need to stagnate for a long time for the cap to not keep jumping like this.

Last season's revenue was projected to be $5.7 billion. This year being projected at $6.2 billion is almost a 9% increase... and that's with the shakeup of the local tv rights deals for about half the US-based teams.

[DoubleK]

Originally Posted by Strange Brew

Definition of HRR is most certainly an item that can be negotiated. The players will be looking for a greater share of the revenues the league makes, no matter how you want to characterize it.

This is bang on. The PA has to go hard at the definition of HRR to increase the size of the pie. I don't think they will win the argument that they deserve a bigger slice of the agreed-to pie.

[Jay Random]

Originally Posted by Strange Brew

Now you have used the word ONGOING which is not in the CBA. Revenue from relocation and grants of new franchises are specifically excluded from HR which was a negotiated item. And when the CBA expires, expect that to be a point for negotiation.

Find me an accountant who treats the sale of a capital asset as revenue. Franchises are capital assets.

[MrMike]

Originally Posted by Strange Brew

Definition of HRR is most certainly an item that can be negotiated. The players will be looking for a greater share of the revenues the league makes, no matter how you want to characterize it.

Now you have used the word ONGOING which is not in the CBA. Revenue from relocation and grants of new franchises are specifically excluded from HR which was a negotiated item. And when the CBA expires, expect that to be a point for negotiation.

It opens up 23 new full time positions at least. If the league had to share that strict profit they may not be so eager to create new jobs for the players. I don’t think they’ll ever get a piece of that.

[Enoch Root]

Originally Posted by Strange Brew

Definition of HRR is most certainly an item that can be negotiated. The players will be looking for a greater share of the revenues the league makes, no matter how you want to characterize it.

Now you have used the word ONGOING which is not in the CBA. Revenue from relocation and grants of new franchises are specifically excluded from HR which was a negotiated item. And when the CBA expires, expect that to be a point for negotiation.

Of course it can be negotiated.

But the third word in the acronym is Revenues. Expansion fees are not revenues. The players can fight all they want, but expansion fees are never going to be on the table.

When the owners of a business sell, or invite in new partners, the employees are not part of the deal.

[Goriders]

Originally Posted by MegaErtz

When is the last time a top five free agent signed in Calgary?

Kadri?

[Jay Random]

Originally Posted by Goriders

Kadri?

So other than Kadri, Tanev, and Markstrom in the last four off seasons…

‘All right, but apart from the sanitation, the medicine, education, wine, public order, irrigation, roads, a fresh water system, and public health, what have the Romans ever done for us?’ —The Life of Brian

[Strange Brew]

Originally Posted by Enoch Root

Of course it can be negotiated.

But the third word in the acronym is Revenues. Expansion fees are not revenues. The players can fight all they want, but expansion fees are never going to be on the table.

When the owners of a business sell, or invite in new partners, the employees are not part of the deal.

WRT the bolded, employee salaries are not calculated as a share of revenues in most other businesses either. But it was collectively bargained in this case.

I can obviously understand why owners would want no part of this and it's not hard to identify points that support that position.

Marty Walsh has come out and said they are eyeing expansion fees and it's not hard to see why. if The NHL goes to say 36 teams in next 10 years that is easily another $5 Billion in fees.

Expansion fees are not exactly the same as proceeds from selling a team. And when owners cry about losing money, whether it is in arena negotiations or labor negotiations, players/municipalities/taxpayers should rightfully rebut this point with expansion fees. If that results in players getting a higher share of HRR without changing the definition, then the same objective is accomplished. I wouldn't be so quick to dismiss this tactic.

[TheIronMaiden]

Originally Posted by Hockey_Ninja

You just know teams are still gonna waste that extra space

Role players will get a raise just as much as stars. I think that's ok. the NHL is still a team first league. Well, unless you're the Oilers.

[Jason14h]

Player may be able to negotiate a % of expansion fees - similar to employee equity in a company - but it can not affect the cap as these are not sustained / constant revenue / source of funds. They are one off events

Sure they can ask for more % of HRR as well - but that still isn’t directly tied to expansion fee .

[Strange Brew]

Originally Posted by Jay Random

Find me an accountant who treats the sale of a capital asset as revenue. Franchises are capital assets.

That is a tangent and not worth debating.

Expansion fees increase the wealth of owners, they pay tax on it, it increases the value of their franchise.

Players want a greater share of the wealth that is created by the game they play.

They already negotiated a share of naming rights for example. And that doesn't matter whether they are paid all at once or over time. People are too hung up over expansion fees not being recurring and predictable.

[Kipper_3434]

Matthew's not inking for the full 8 making more and more sense now