Salary Cap over 70 million next year

Salary Cap over 70 million next year

Freak
Freak

June 28th, 2012, 7:56 pm #1

http://ca.sports.yahoo.com/news/nhl-sal ... XWUZIJfwM6


NEW YORK (AP) -- The NHL salary cap is going up, allowing teams to spend about $6 million more on players this season.
Before opening labor talks, the league and the NHL Players' Association announced the cap has been set at $70.2 million. That's a significant jump from last year's cap of $64.3 million, and continues the trend of increases since the cap system was established in 2005.
The minimum teams can spend on payroll is also rising, going up from $48 million to $54.2 million.
The announcement comes as the league prepares to open its free-agency period Sunday.
It's unclear what effect labor talks will have on the salary cap. The two sides are opening talks this week in a bid to reach a new deal before the current CBA expires Sept. 15.
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Sedsey
Sedsey

June 29th, 2012, 2:46 am #2

So much seems to ride on the fallacy that endless growth is even possible and no matter how much we get ****** by bankers we see stuff like this. In microcosm, the NHL isn't going to just keep making more and more money and eventually there will be a crash in salaries. 70 Mil? Don't I remember pre-cap days where fans cursed Philly and NYR black and blue for exceeding to around that mark?

Wow, the players raped the owners on the last deal. I am fully "cheering" for the ownership side now. I'd love it if it were more like the NFL where a guy who is underperforming can just be cut.

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Freak
Freak

June 29th, 2012, 3:51 am #3

But how are the weak teams supposed to survive?

The floor is almost double what it was after the lockout.I think it's a sad state of affairs when players are being traded that have no interest in playing just for the cap hit.

I think the league would be better off with a cap at 55 million, a floor at 30 million, with a luxury tax for those that spend over the league that goes into a pot for the teams struggling. They could then tally up the tax before hitting the teams keeping under the tax for the compensation given the weaker teams.

I know it doesn't make for a fair playing field, but it is hardly fair now, as teams like Philly, NYR, Pitts, Detroit, LA, and Vancouver seem to have an abundance of talent, yet teams like Columbus look like minor league teams.

The point of the cap was to make it fair for all the teams in the league, and to enable the weaker teams to keep their stars...but that has clearly not happened.
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Outland
Outland

June 29th, 2012, 1:45 pm #4

So much seems to ride on the fallacy that endless growth is even possible and no matter how much we get ****** by bankers we see stuff like this. In microcosm, the NHL isn't going to just keep making more and more money and eventually there will be a crash in salaries. 70 Mil? Don't I remember pre-cap days where fans cursed Philly and NYR black and blue for exceeding to around that mark?

Wow, the players raped the owners on the last deal. I am fully "cheering" for the ownership side now. I'd love it if it were more like the NFL where a guy who is underperforming can just be cut.
We've always known that the owners have been idiots & the players will always want more more more BUT as long as John Q.Public keeps spending and supporting this madness it's not going to change. The NHL & players might be the ship of fools heading towards another reef but it's the fans who keep booking passage to sail on it.

So what is on the horizon? Outmaster2k+12 has predicted this: Unpleasantness will happen and then peace will reign and the owners will once again light their arenas to attract the fans like moths to flames. They will put contrite messages on the ice thanking / begging / fellating the money spenders as they go about trying to make themselves tragic figures even though it'll have been a comedy and not a very good one at that.


Out(Is paying a very mediocre player 3 mil a year really a reasonable cost)land




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Rustydog
Rustydog

June 29th, 2012, 2:51 pm #5

So much seems to ride on the fallacy that endless growth is even possible and no matter how much we get ****** by bankers we see stuff like this. In microcosm, the NHL isn't going to just keep making more and more money and eventually there will be a crash in salaries. 70 Mil? Don't I remember pre-cap days where fans cursed Philly and NYR black and blue for exceeding to around that mark?

Wow, the players raped the owners on the last deal. I am fully "cheering" for the ownership side now. I'd love it if it were more like the NFL where a guy who is underperforming can just be cut.
This isn't about society not learning. It's about the formula written in the CBA. The reason the cap is going up is because hockey-related revenue is increasing. To your point, if revenues do stop increasing (or decrease), there are provisions for the cap to fall. The thing to remember about HRR, is that it is very predictable from year to year. A majority of the revenue comes in big chunks (TV rights and advertising). These revenues are generally pre-determined in a contract. The following is from the CBA, and is just a small part of how the cap is set.


In each League Year, the Lower and Upper Limit calculations set
forth in paragraph (b)(iii) above shall be subject to adjustment
upon the Independent Accountants' issuance of the Final HRR
Report for the immediately preceding League Year, which Report
shall set forth the Actual HRR and Benefits figures. If, as a result
of re-calculating the Payroll Range by using the Actual HRR and
Benefits figures set forth in the Final HRR Report rather than
Preliminary HRR and Preliminary Benefits figures used to
calculate the Range in paragraph (b)(i) above the Adjusted
Midpoint of the Range would be either increased or decreased by
$3 million or more in either direction, then the Payroll Range for
such League Year shall be adjusted accordingly, effective as of the
first day of the NHL Regular Season, based on the figures set forth
in the Final HRR Report. The NHLPA, upon further consultation
with the NHL, may elect to reduce the threshold for adjusting the
Payroll Range in the manner set forth in this paragraph for future
League Years to an amount lower than $3 million.

Illustration: Assume that the Initial HRR Report for Year 2 calculates
Preliminary HRR for Year 2 to be $1.9 billion, and Preliminary Benefits to be
$66 million. Calculating the Range for Year 3 would occur on or before the
June 30 immediately preceding Year 3 as follows:

The Midpoint is (54% of $1.9 billion) - $66 million
----------------------------------------- =
30 Clubs in the NHL

($1.026 billion - $66 million) / 30 = $960 million / 30 = $32.0 million
The Adjusted Midpoint is calculated by increasing $32.0 million by five (5)
percent, to $33.6 million.

Therefore, the Upper Limit would be $41.6 million ($8 million up from the
Adjusted Midpoint), and the Lower Limit would be $25.6 million ($8 million
down from the Adjusted Midpoint).

If, in the immediately following October, based upon the Actual HRR and
Benefit calculations as set forth in the Final HRR Report, the calculation of
the Adjusted Midpoint increased to $36.6 million or more, or decreased to
$30.6 million or less, then the Adjusted Midpoint for that League Year would
be adjusted to reflect the new Adjusted Midpoint, and the Upper and Lower
Limits of the Payroll Range would be recalculated accordingly.
(v) Because the Midpoint, Upper Limit and Lower Limit of the Range
each bear a direct relationship to HRR, these figures may either
rise or fall from one given year to the next, in the event of either a
rise or fall in HRR, respectively.
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Outland
Outland

June 29th, 2012, 3:39 pm #6

Whether it be thru the live gate, TV ratings or just buying team gear and other accessories, it's all from the masses.

As long as customers (fans) are willing to pay the asking prices from the suppliers (owners) there is not going to be any changes made and that includes what the labor force (players) gets as compensation.

It's applies to everything in all walks of life. That's why society (people) never learns


Outs
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