[News] NHL and NHLPA release salary cap estimates for next 3 years

[Samonadreau]

McDavid getting 20M

[Canada 02]

soon the floor is going to be higher than last season's ceiling
I'm curious to see what the team budgets across the league will be. There is going to be significant separation between the haves and have-nots

https://twitter.com/user/status/1885365978562715786

[Samonadreau]

Upcoming lockout and more future escrow for sure.

[getbak]

Originally Posted by Claes

What is the cap floor in relation to the ceiling? I'm guessing it's a percentage of the ceiling.

They start with the "midpoint" of the salary range, which is supposed to be the average amount spent by each team. The cap is set at 115% of the midpoint and the floor is 85% of the midpoint.

[Groot]

Massive increase 2026-2027 so Toronto can throw a huge bag of money at McDavid.

[Shazam]

Originally Posted by Enoch Root

Those are huge numbers. CGY's $18M of cap space is worth almost nothing now.

Nah. Parkinson's Law wins.

[Macho0978]

Originally Posted by Paulie Walnuts

Crazy they are forecasting a cap and no Canadian TV deal and a lockout looming after the 25/26 season.

TV deal is about $400 mil and year and rumours are Amazon might out bid Rogers. What are you expecting to happen here?

I don't see a lockout with those types of cap increases

[YyjFlames]

How the heck are people reading this and thinking lockout?

This is a joint release from the NHL/NHLPA to set player contract negotiations that'll govern player contracts for the next eight years. If there were issues, the NHL (read TEAMS) wouldn't agree to such lofty projections that'll certainly handcuff teams considerably if they have a lockout.
They've had more peace and behind the scenes constructive solutions to grow revenues than they've ever had in the past.
Gary Bettman has announced he's retiring soon. As much as I've had issues with his face in the past, he has developed a very constructive relationship with both the NHL and NHLPA. He's going out on a high note and not under a lockout.

I mean unless Trump torpedos the North American economy in the next 18 months, I don't see any signs of a lockout coming.

[Jiri Hrdina]

Originally Posted by Paulie Walnuts

https://www.tsn.ca/nhl/travis-yost-n...gular%20season.

That just seems like smart contingency planning.

[rhino]

Originally Posted by Enoch Root

Those are huge numbers. CGY's $18M of cap space is worth almost nothing now.

Its worth 18 million now... well its actually 43 million pro rated for the remainder of the season

[YyjFlames]

Originally Posted by Jiri Hrdina

That just seems like smart contingency planning.

Yes, agents negotiate for players based on the potential it might happen, but it's so unlikely right now based on every other sign out there.

Despite what PW keeps saying, all of the other lockouts came after significant noise of unrest and problems. The NHL and NHLPA have negotiated deal after deal after deal over the last seven years to grow revenues. They're in a healthy place (as long as the overall economy doesn't get screwed up).

[Leeman4Gilmour]

As of today, the Flames have $37,137,500 with 9 players to sign to fill out a 23 man roster for next season. Average of $4,126,388.89 per player. Wow.

[3thirty]

Those concerned with Huberdeaus cap hit can step back from the ledge.

[Erick Estrada]

Originally Posted by browna

Such a big increase percentage wise too, is somewhat new, and takes some digesting for teams for their internal budgets, nothing to do with player salaries.

How so? Player salaries are a team's biggest expense.

[Locke]

Originally Posted by 3thirty

Those concerned with Huberdeaus cap hit can step back from the ledge.

I always step back from the ledge after pushing someone over it. When you peek over? Thats when they get you!

[Aarongavey]

Originally Posted by Samonadreau

Upcoming lockout and more future escrow for sure.

Doubt that. They have to raise the cap in part because they are currently having to pay the players more than their contract values because there is no escrow, the owners owe the players money because they are underpaying them.

Also the players were paying off the Covid debt until this year so effectively the yearly split was more like 45-55 players to owners. Now that the Covid debt is paid off they had to have massive jumps in the cap.

[Locke]

I suppose its also worth looking at the fact that they've expanded to Vegas and Seattle and ditched the 'Arizona Boat Anchors' so it does stand to reason that revenues are increasing.

I was surprised at by how much the Cap went up though.

[OILFAN #81]

Originally Posted by Samonadreau

McDavid getting 20M

My guess is 8 years 17.5 M.

[Coach]

Originally Posted by Locke

I suppose its also worth looking at the fact that they've expanded to Vegas and Seattle and ditched the 'Arizona Boat Anchors' so it does stand to reason that revenues are increasing.

I was surprised at by how much the Cap went up though.

Tricking every municipality into coughing up billions in property probably helps too.

[Aarongavey]

https://x.com/walsha/status/1665132515680501761?s=12

I have no idea how to imbed tweets but this is an Allan Walsh tweet from 2023. The large jump was entirely predicable. It was probably one reason why Conroy was going after Hanifin so hard last year. Even at 8 million a year that contract in a couple years will be like paying 6 million right now. The Weegar contract is an incredible steal, in two years it will be like a 4 million dollar contract.

But in 22/23 the owners got an extra 1.1 billion more than they should have from revenue that year. The cap was always artificially set low to recoup the covid losses. Now they need the cap to be at a number that reflects that reality. It is not like revenue flat lined from 2019 through 2024, it is that the players were paying way more in the years after Covid than they naturally would have in those years to pay off the Covid debt.

The Hurricanes are perfectly set up to be very good for a long time.

Allan Walsh- There was a $1.1 Billion Escrow Debt from the pandemic owing from NHL players to Owners. By end of this season, the balance will be down to $70 million. In other words, 93% of the Escrow Debt will be paid off. 1/