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.