09-14-2020, 06:49 PM
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#1
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Norm!
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NHL GM's prepare for a new reality financially
With teams facing reduced and lost revenue the reality is that the salary cap might not be as relevant to some teams in terms of their spending plans.
https://globalnews.ca/news/7335093/n...medium=Twitter
Quote:
he salary cap was projected to hit at least US$84 million in 2020-21 — a bump of $2.5 million from the current season — and had the potential to rise to $88.2 million if the NHL Players’ Association maxed out the escalator clause in the collective bargaining agreement.
The playoffs were just over the horizon. GMs were mapping out plans for free agency, the draft and beyond.
That, as the saying goes, was then. And the “now” looks a whole lot different than anyone could have imagined 6 1/2 months ago thanks to the devastating COVID-19 pandemic.
The NHL got the current season back up and running this summer in the hub cities of Toronto and Edmonton without fans after the schedule was suspended March 12, but with little revenue coming through the door, teams are facing harsh, new economic realities.
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My name is Ozymandias, King of Kings;
Look on my Works, ye Mighty, and despair!
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09-14-2020, 07:41 PM
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#2
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All I can get
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It just occurred to me, what with the belt tightening, that we see more players on ELCs on rosters this coming season. The big ticket UFAs will probably find homes, but the market for the second tier players might be soft.
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09-14-2020, 07:42 PM
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#3
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Lifetime Suspension
Join Date: Sep 2005
Location: The Void between Darkness and Light
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Quote:
Originally Posted by Reggie Dunlop
It just occurred to me, what with the belt tightening, that we see more players on ELCs on rosters this coming season. The big ticket UFAs will probably find homes, but the market for the second tier players might be soft.
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Short term, low cap deals in the hopes that in years 2 and 3 the salaries might recover.
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09-14-2020, 10:32 PM
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#4
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Franchise Player
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The clubs can have a chance to break even with 63M internal salary caps and the players not getting anything from the 20% escrow.
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09-14-2020, 10:38 PM
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#5
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Franchise Player
Join Date: Jul 2010
Location: Van Island
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Quote:
Originally Posted by Reggie Dunlop
It just occurred to me, what with the belt tightening, that we see more players on ELCs on rosters this coming season. The big ticket UFAs will probably find homes, but the market for the second tier players might be soft.
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Especially since most prospects will not have a place to play if they’re not in the NHL.
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09-14-2020, 10:45 PM
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#6
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Backup Goalie
Join Date: Oct 2018
Exp:
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I was thinking, this could be a huge help in trying to offload Lucic. From what ik, he isn't actually owed as many dollars. So for a team that wants to save money but needs to keep the cap above the limit, lucic could be a could cheap option. I don't know the details and it still might be expensive to offload him, however what I'm trying to say is perhaps this helps us out.
If you think im wrong feel free to let me know why.
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09-14-2020, 10:54 PM
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#7
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Lifetime Suspension
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Quote:
Originally Posted by Flash Walken
Short term, low cap deals in the hopes that in years 2 and 3 the salaries might recover.
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I think this is a definite possibility. Especially with a new US TV deal coming for the 2022-23 season.
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09-14-2020, 11:02 PM
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#8
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Lifetime Suspension
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Quote:
Originally Posted by Abatedmean
I was thinking, this could be a huge help in trying to offload Lucic. From what ik, he isn't actually owed as many dollars. So for a team that wants to save money but needs to keep the cap above the limit, lucic could be a could cheap option. I don't know the details and it still might be expensive to offload him, however what I'm trying to say is perhaps this helps us out.
If you think im wrong feel free to let me know why.
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You aren't wrong, he has a 5.25m cap hit (with us) for the next 3 years, but if we traded him, the acquiring team would only have to pay him 8.75m in actual dollars.
However, he does still have a NMC and I'm of the belief that he and Treliving have a handshake agreement for him to waive his NMC for the expansion draft, but would he be willing to do that again?
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09-14-2020, 11:07 PM
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#9
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Appealing my suspension
Join Date: Sep 2002
Location: Just outside Enemy Lines
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I think it will be guys like Forbort who feel the pinch. Going into this past season likely though a 9-10 million dollar contract over 3-4 years could happen. Now he might get a one year deal for 2 million.
__________________
"Some guys like old balls"
Patriots QB Tom Brady
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09-14-2020, 11:12 PM
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#10
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Lifetime Suspension
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Quote:
Originally Posted by Sylvanfan
I think it will be guys like Forbort who feel the pinch. Going into this past season likely though a 9-10 million dollar contract over 3-4 years could happen. Now he might get a one year deal for 2 million.
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If Forbort is willing to sign for sub-2m, I would gladly welcome him back.
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09-15-2020, 07:54 AM
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#11
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Scoring Winger
Join Date: Dec 2010
Location: Cowtown
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Quote:
Originally Posted by Crown Royal
If Forbort is willing to sign for sub-2m, I would gladly welcome him back.
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Not with better options out there. He was horrible in the playoffs. Rather a cheaper, better player.
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09-15-2020, 08:17 AM
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#12
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Franchise Player
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Quote:
Originally Posted by Crown Royal
If Forbort is willing to sign for sub-2m, I would gladly welcome him back.
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Any salary taken on by what the Flames (or any of the 15 low revenue break even teams) currently have committed will require the owners to put in extra cash, either a cash call or a loan.
Paying Forbort more than 1M will not be a good financial decision. He will not draw in any revenue and will not be doing that for any other team that wants to have him. He has no bargaining position.
The majority of UFA signings will be close to the league minimum.
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09-15-2020, 08:26 AM
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#13
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Franchise Player
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Quote:
Originally Posted by Abatedmean
I was thinking, this could be a huge help in trying to offload Lucic. From what ik, he isn't actually owed as many dollars. So for a team that wants to save money but needs to keep the cap above the limit, lucic could be a could cheap option. I don't know the details and it still might be expensive to offload him, however what I'm trying to say is perhaps this helps us out.
If you think im wrong feel free to let me know why.
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There are 6 teams that have not already committed 64 M to the 20-21 cap that floor is 60M
Ottawa, Buffalo, Florida, NJ, Detroit and Colorado.
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09-15-2020, 08:43 AM
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#14
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Lifetime Suspension
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If they can't fill stadiums with people paying $100+ for a seat and concessions, I can't imagine how they even come close to meeting current contract demands for players. Every organization is going to have to hack and slash at every level just to keep their heads above water until they're putting butts in seats again.
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09-15-2020, 09:22 AM
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#15
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Franchise Player
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Quote:
Originally Posted by Crown Royal
You aren't wrong, he has a 5.25m cap hit (with us) for the next 3 years, but if we traded him, the acquiring team would only have to pay him 8.75m in actual dollars.
However, he does still have a NMC and I'm of the belief that he and Treliving have a handshake agreement for him to waive his NMC for the expansion draft, but would he be willing to do that again?
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If a team traded for Lucic right now I think all they'd have to pay him over the next 2 seasons would be $7,750,000.
He's still owed $10,000,000 on his contract, but the oilers are paying $2,250,000 of that ($750,000 x 3)
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09-15-2020, 10:05 AM
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#16
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Franchise Player
Join Date: May 2016
Location: ATCO Field, Section 201
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This could very well be what finally sinks Florida and Arizona. But I suppose that Seattle money might hold teams over for another year.
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09-15-2020, 10:16 AM
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#17
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Norm!
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Wouldn't the Seattle money count in last years revenue?
__________________
My name is Ozymandias, King of Kings;
Look on my Works, ye Mighty, and despair!
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09-15-2020, 10:20 AM
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#18
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Franchise Player
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Quote:
Originally Posted by TheIronMaiden
This could very well be what finally sinks Florida and Arizona. But I suppose that Seattle money might hold teams over for another year.
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Why does Seattle pay a 650 million expansion fee when they could buy Florida and Arizona and combine them for 610 M ?
Florida was worth $310 M and Arizona $300M BEFORE the shutdown.
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09-15-2020, 10:25 AM
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#19
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Franchise Player
Join Date: Oct 2001
Location: Vancouver
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Quote:
Originally Posted by ricardodw
Why does Seattle pay a 650 million expansion fee when they could buy Florida and Arizona and combine them for 610 M ?
Florida was worth $310 M and Arizona $300M BEFORE the shutdown.
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Can they legally back out at this point?
__________________
"A pessimist thinks things can't get any worse. An optimist knows they can."
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09-15-2020, 10:28 AM
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#20
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Franchise Player
Join Date: Jun 2008
Location: Calgary
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Quote:
Originally Posted by FlamesAddiction
Can they legally back out at this point?
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Not "legally", but we have seen several companies back out of mergers and acquisitions because they rationally calculated that the cost of ensuing litigation and settlement would be less than the losses from going ahead... I do not pretend to know the NHL's business, nor how much money has already been paid, but I assume you can do anything - just have to weigh the costs of do's and don'ts...
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