NHL projects salary cap to rise from $81.5mil to $84 mil-$88.2 mil

[jroc]

Here's a question: Would a cross the board roll back in salaries be an option?

Of course, with the optics of a big pay cut, the NHLPA would obviously be against it, but at the end of the day the split of HRR is still 50/50, so the take home would potentially be the same as escrow payments would be much less, plus it would protect the union members that are up for new contracts and need a new deal.

Thoughts?

[Textcritic]

Originally Posted by jroc

Here's a question: Would a cross the board roll back in salaries be an option?

Of course, with the optics of a big pay cut, the NHLPA would obviously be against it, but at the end of the day the split of HRR is still 50/50, so the take home would potentially be the same as escrow payments would be much less, plus it would protect the union members that are up for new contracts and need a new deal.

Thoughts?

This is a sensible idea, and maybe once operations resume we will see something like this implemented, especially if the first phase of a return begins play inside empty arenas. The problem is that there is no mechanism in place to get there.

I suspect what will happen is that when the League resumes they will do so under an $81.5 m cap as announced, but salaries will be subject to a huge escrow. (I don't know why anyone would consider this a "joke," since this is how the CBA is structured, and this has always been how it works. It just is.) I could see both the NHL and the PA becoming highly motivated to enter into negotiations to restructure the CBA, and possibly to roll back salaries as a result, but this probably won't happen right away.

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[ricardodw]

Originally Posted by Textcritic

This is a sensible idea, and maybe once operations resume we will see something like this implemented, especially if the first phase of a return begins play inside empty arenas. The problem is that there is no mechanism in place to get there.

I suspect what will happen is that when the League resumes they will do so under an $81.5 m cap as announced, but salaries will be subject to a huge escrow. (I don't know why anyone would consider this a "joke," since this is how the CBA is structured, and this has always been how it works. It just is.) I could see both the NHL and the PA becoming highly motivated to enter into negotiations to restructure the CBA, and possibly to roll back salaries as a result, but this probably won't happen right away.

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It would obviously be a public relations joke. A 81.5M cap when the revenue stream agreement that was agreed upon supports a 40-50M cap??? How is that not humorous in the extreme?

You will not build a fan base when you are so tone deaf to the realities of the the "new normal". For the NHL ... or any sports team to win back public support they have to give all appearances of taking cut backs.


It was bad enough having the salaries so out of touch with reality when everyone had a well paying job.

Tickets to the Flames $300 but the fan get to keep $250 in escrow until they get their 200K year job back.

[Weitz]

Originally Posted by Textcritic

This is a sensible idea, and maybe once operations resume we will see something like this implemented, especially if the first phase of a return begins play inside empty arenas. The problem is that there is no mechanism in place to get there.

I suspect what will happen is that when the League resumes they will do so under an $81.5 m cap as announced, but salaries will be subject to a huge escrow. (I don't know why anyone would consider this a "joke," since this is how the CBA is structured, and this has always been how it works. It just is.) I could see both the NHL and the PA becoming highly motivated to enter into negotiations to restructure the CBA, and possibly to roll back salaries as a result, but this probably won't happen right away.

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If it were to happen I think it would be after a couple years of severly recessed revenue. I don't see the players giving up money for good now, when in a season or 2 it could be totally back to normal. Escrow will be big for a year maybe 2 though.

[getbak]

The easiest solution for now is probably just to freeze the cap where it is and let the players know there will be a massive escrow holdback until things settle back to some semblance of normalcy.

Anything else is just guessing as to what things will look like in a couple of years and that has a big chance to backfire.

If they do an across-the-board rollback now and things return to normal in a year or two, those players who took a rollback on a long-term contract will be stuck at the new lower amount, even when the cap goes back up. If they just let escrow handle things, when/if things return to normal, everyone's salaries will return to normal at a relative rate.

The only problem is that the number on a player's contract won't actually mean anything for a few seasons while things recalibrate, but as long as everyone understands that, it shouldn't be an issue.

[Flamenspiel]

It’s a gate oriented league, not like NFL. Beyond a desperate attempt to finish this season and playoffs, the teams are better off staying dark and not maintaining payrolls. So this would mean zero chance they come back “next” season(without fans) until there is a vaccine or effective treatment.

[Textcritic]

Originally Posted by ricardodw

It would obviously be a public relations joke. A 81.5M cap when the revenue stream agreement that was agreed upon supports a 40-50M cap??? How is that not humorous in the extreme?

It's not especially ridiculous when one takes the fraction of time needed to see that the League and the PA arrive at their calculations of HRR and the salary cap from the most immediate returns of the previous season. Since there is no mystery here, I don't see how an inflated escrow would amount to a "public relations joke" in the intervening time of re-adjustment for sports leagues following the pandemic. I guess you are free to be outraged, but really, this looks like a lot of hand-waving about nothing.

You will not build a fan base when you are so tone deaf to the realities of the the "new normal". For the NHL ... or any sports team to win back public support they have to give all appearances of taking cut backs.

I guess we will see what happens, but as others have shown a rollback of some sort is premature at the outset. If and when the NHL suffers at the gate, this will be reflected in HRR, and will have a dramatic impact on the salary cap and player salaries moving forward. again, I don't get the outrage.

It was bad enough having the salaries so out of touch with reality when everyone had a well paying job.

Salaries are a reflection of the cap, which is based on revenues. I would agree that there are clear instances of a good number of excessive, individual player salaries, but I think globally speaking the numbers are pretty close to market value. Players are paid well because that is the cost of doing business.

[ricardodw]

Originally Posted by Textcritic

It's not especially ridiculous when one takes the fraction of time needed to see that the League and the PA arrive at their calculations of HRR and the salary cap from the most immediate returns of the previous season. Since there is no mystery here, I don't see how an inflated escrow would amount to a "public relations joke" in the intervening time of re-adjustment for sports leagues following the pandemic. I guess you are free to be outraged, but really, this looks like a lot of hand-waving about nothing.


I

This is pretty close to the kind of post that I have come to expect from you.

How many people in a hot bed of hockey like Calgary would be able to explain even the most rudimentary mechanism of the salary cap calculations?

maybe 5000-10000 out of the 500,000+ people that consider themselves Hockey/Flames fans.

The rest of them would find it ridiculous to say someone was announced at getting a 7M contract and was only expecting to get paid 4 Million.

Out of the 10,000 of us OCD-Level fans that would understand the mechanism of the cap system there is a fair percentage that would be against keeping the funny-money cap at 80M plus when the negotiated deal says it should be 40-50M .

The NHL and Flames don't have to worry about the 10,000 OCD nerds.... they need the 500,000 to feel comfortable with the way the league is run.

[Textcritic]

Originally Posted by ricardodw

This is pretty close to the kind of post that I have come to expect from you.

How many people in a hot bed of hockey like Calgary would be able to explain even the most rudimentary mechanism of the salary cap calculations?

maybe 5000-10000 out of the 500,000+ people that consider themselves Hockey/Flames fans.

The rest of them would find it ridiculous to say someone was announced at getting a 7M contract and was only expecting to get paid 4 Million.

Out of the 10,000 of us OCD-Level fans that would understand the mechanism of the cap system there is a fair percentage that would be against keeping the funny-money cap at 80M plus when the negotiated deal says it should be 40-50M .

The NHL and Flames don't have to worry about the 10,000 OCD nerds.... they need the 500,000 to feel comfortable with the way the league is run.

How many of those +500,000 hockey fans pay even close enough attention to know about the existence of escrow? I expect that for the vast majority of these people they simple don't care, and are happy to watch games without puzzling about whether players are taking home 90% or 60% of their salaries.

In the end, this is not going to be the thing that makes or breaks the NHL.

[ricardodw]

Originally Posted by Textcritic

How many of those +500,000 hockey fans pay even close enough attention to know about the existence of escrow? I expect that for the vast majority of these people they simple don't care, and are happy to watch games without puzzling about whether players are taking home 90% or 60% of their salaries.

In the end, this is not going to be the thing that makes or breaks the NHL.

CEOs of Calgary companies taking pay cuts during COVID-19


Put this headline up against " NHL/Flames keeps Cap at 81.5 M"

or the inevitable "Flames sign Player X to 9M deal"

or "NHL Team signs Taylor Hall to 10 M for 8 Years"

or " the Flames raise Ticket prices in the biggest recession ever while asking for government handouts"

The NHL ( and all pro sports) has to be open and emphasis that will be cutting back in proportion to the economic disaster the vast majority of the population is facing.