[News] UPD: Salary cap set to $81.5 million and floor set at $60.2 million

[Locke]

Originally Posted by Robbob

I think the NHL has needed one of these years where the cap does go up or corrects its self. These contracts that are being signed now are being signed with the assumption that the cap will continue to go up 2-4M each each.

I agree, some of the contracts being signed are nuts and in conjunction with an upcoming CBA negotiation and constant whining about Escrow...a correction or a 'lean year' or two are overdue.

Remember when the Cap was around half of this much?

[Firebot]

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[getbak]

Originally Posted by Locke

I wonder how much of this is to control the Cap Floor for the introduction of Seattle?

Likely not at all considering that's two years away and there will be a new US TV deal in place by then. If they can cash in on the TV deal, the cap could go up in a big way two years from now.

There's also a very good chance that there will be a new CBA in place by then, so the formulas used to calculate the cap and floor will likely be tweaked anyway.



This is about keeping escrow down.

[Resolute 14]

Originally Posted by Flash Walken

It's interesting to consider a salary cap contraction.

If this was baseball or wahtever, 1/3 of the league would be near the bottom of the cap and could absorb troublesome contracts from teams at the top end.

But the NHL salary cap doesn't work that way. There aren't many teams in the league below the cap right now and if they are it's generally because they simply can't afford more salary.

Maybe the players shouldn't have pushed through the accelerator every year it was available....

More relevantly: maybe the GMs shouldn't have assumed the players would push through the accelerator every year.

[Fire]

Originally Posted by getbak

Likely not at all considering that's two years away and there will be a new US TV deal in place by then. If they can cash in on the TV deal, the cap could go up in a big way two years from now.

There's also a very good chance that there will be a new CBA in place by then, so the formulas used to calculate the cap and floor will likely be tweaked anyway.



This is about keeping escrow down.

Is there any indication that the new US TV deal will be considerable more than it is now?

[Strange Brew]

In theory, something like this simply benefits teams that are better managed.

[DeluxeMoustache]

Originally Posted by Fire

Is there any indication that the new US TV deal will be considerable more than it is now?

That’s a good question and I was wondering the same.

In the Tkachuk thread, people were talking about what the cost is to buy UFA years, many years out.

Looking at revenue sources, off the top of my head, some pieces that have grown over the past decade or two, significantly, include regular tickets, suites, , special games (exhibition, outdoor, China etc.), TV deals, merch, advertising, and now gambling I am guessing has been added. It took all of that to sustain the salary increases that we have seen.

What are the levers to pull that can result in step changes in revenue?

[getbak]

Originally Posted by Fire

Is there any indication that the new US TV deal will be considerable more than it is now?

Yes: https://www.forbes.com/sites/bradadg.../#2d7e97b74e44

Not only has it been 10 years since the last deal was signed, but all the other leagues have seen significant increases in their latest rights deals. Live sports is the only programming left that people actually watch live -- which means they watch the commercials too.

While the ratings for tv in general have been in a steady decline for years, sports have stayed relatively steady. In fact, last week's Game 7 was the most-watched Stanley Cup Final game in the US in over 45 years.

There are rumours that ESPN wants to get back into the hockey game. If they do, it will likely be in a partnership with other rights holders like the NBA and MLB contracts rather than an exclusive deal.

There will also most-likely be a streaming component to the new deal.

[shadowlord]

What about the escalator clause? I know the players hate it because it increases escrow, but is there a chance they use it again this year?

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[sureLoss]

Originally Posted by shadowlord

What about the escalator clause? I know the players hate it because it increases escrow, but is there a chance they use it again this year?

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That is what has the teams worried: The cap will be less than $82 million after the NHLPA decides on whatever escalator they decide to use.

Official word on the actual cap number is expected this Saturday.

[savemedrzaius]

How many teams are considered in "cap trouble" this off season?

Half the league? The cap is too low.

[shadowlord]

Originally Posted by sureLoss

That is what has the teams worried: The cap will be less than $82 million after the NHLPA decides on whatever escalator they decide to use.

Official word on the actual cap number is expected this Saturday.

Oh, $82 million is AFTER the escalator? Ouch.

Then I assume $82 million is at max allowable escalator amount.

I wonder what the ceiling value is without any escalator.

[Yrebmi]

Originally Posted by savemedrzaius

How many teams are considered in "cap trouble" this off season?

Half the league? The cap is too low.

Lol
Awarded contracts are too high.

[savemedrzaius]

Originally Posted by Yrebmi

Lol
Awarded contracts are too high.

You look at what the other 3 top leagues pays their stars.

https://howmuch.net/articles/sports-leagues-by-revenue

This is from 2016 but still the NHL is in the same ballpark as the NBA.

Ibaka makes 22 million a season. There are countless guys like this in the NBA who are good but making salary like that.

Hockey stars are realizing they deserve to get paid. Should McDavid be the top paid player in the NHL but be paid half of what a played of Serge Ibaka makes in the NBA?

Doesn't seem right to me. Someone is taking home a nice big piece of the pie and it ain't the players.

[PegCityFlamesFan]

NBA you have 6-7 man rotations for most of the playoffs as opposed to 17ish players.

[Scroopy Noopers]

“Teams fear cap will drop”

All other threads:

“GMs buying UFA’s at max value!!”

[savemedrzaius]

Originally Posted by PegCityFlamesFan

NBA you have 6-7 man rotations for most of the playoffs as opposed to 17ish players.

NBA is at minimum 8 man rotation. No team is going lower than that. If the Raps had OG healthy they would have been going with a 9 man rotation.

In the NHL the 4th line just needs to be abolished. You want to shake up things? Don't have a 4th line. 4th line is basically the bench warmers in basketball. They don't really matter.

Top 4 dmen and a goalie. So let's say 9 forwards 4 dmen and a goalie all together so 14.

5 more key players equals the best player in the NHL being paid almost half of what a so-so player in the NBA gets.
So a guy like Green who is a 3 point specialist and good defender pulls down 10 million a year but in the NHL we are talking Kuchrov for that.

It just seems crazy to me. People complain about the players getting more and more and more money but look around and it's not even close compared to the other leagues.

[Weitz]

Originally Posted by savemedrzaius

NBA is at minimum 8 man rotation. No team is going lower than that. If the Raps had OG healthy they would have been going with a 9 man rotation.

In the NHL the 4th line just needs to be abolished. You want to shake up things? Don't have a 4th line. 4th line is basically the bench warmers in basketball. They don't really matter.

Top 4 dmen and a goalie. So let's say 9 forwards 4 dmen and a goalie all together so 14.

5 more key players equals the best player in the NHL being paid almost half of what a so-so player in the NBA gets.
So a guy like Green who is a 3 point specialist and good defender pulls down 10 million a year but in the NHL we are talking Kuchrov for that.

It just seems crazy to me. People complain about the players getting more and more and more money but look around and it's not even close compared to the other leagues.

The NBA brings in 50% more revenue than the NHL and has significantly less players per team.

[bubbsy]

On tsn1050 this morning, Mackenzie mentioned the cap being closer to $81.5 million

[getbak]

Originally Posted by sureLoss

Official word on the actual cap number is expected this Saturday.

Shouldn't it be settled by Thursday so that teams know what they're working with going into the Draft?

Originally Posted by savemedrzaius

You look at what the other 3 top leagues pays their stars.

https://howmuch.net/articles/sports-leagues-by-revenue

This is from 2016 but still the NHL is in the same ballpark as the NBA.

Ibaka makes 22 million a season. There are countless guys like this in the NBA who are good but making salary like that.

Hockey stars are realizing they deserve to get paid. Should McDavid be the top paid player in the NHL but be paid half of what a played of Serge Ibaka makes in the NBA?

Doesn't seem right to me. Someone is taking home a nice big piece of the pie and it ain't the players.

Not only does the NBA have significantly smaller rosters (where a star player's value is much higher than the best NHLer's), but they also have significantly higher revenue.

The NBA gets more money in one year on their current US TV deal than the NHL gets over the entire 10 years of their current deal. The NBA's deal pays $24 billion over 9 years, or $2.67 billion per year. The NHL's deal pays $2 billion over 10 years, or $200 million per year. The Canadian tv deals are significantly in the NHL's favour, but the combined totals still see the NBA's numbers dwarf the NHL's.

Each NBA team receives just under $90 million per year from the US national tv contract alone. That doesn't include the regional broadcast deals, sponsorship revenue, ticket sales, in-arena sales, or merchandising.

The NBA is a merchandising machine as well. I read an article a few years ago about sports licensing and it mentioned that in the previous year, the NBA had sold more LeBron James' jerseys than the total number of all NHL jerseys sold league-wide.