NHL salary cap could hit $40-$45 million US next season

[Madferret]

NHL salary cap could hit $40-$45 million US next season

SCOTTSDALE, Ariz. (CP) - The NHL's spirited comeback from its labour lockout appears to be good news for the bottom line next year.

A source at the NHL board of governors' meeting said current projections show next season's salary cap will be between $40 million and $45 million US. The current team salary cap is $39 million, based on projected league revenues of $1.8 billion.

The higher the revenue, the higher the salary cap and the more players can make.

This is good in a retaining Chara & Redden kind of way.

:)

[Iced Tea]

It would be nice for quite a few teams but the final numbers will only be known at the end of the season.

I think the Sens should still trade Chara or Redden to the Canucks for Wade Brookbank and Steve McCarthy. It will shore up the weak Sens defense and bring much needed grit to a soft Sens team. The Canucks could use Chara or Redden on the third defense pairing.

I'm just trying to be as delusional as the SN Leafs fans. :shrug: :D :laughing:

[Yoata]

Could hit 40? So that's saying it could go up what half a mill?

Big news.

[Mel]

I was pretty well convinced that revenue was going to fall short, and the players were going to lose their escrow in full.

So the fact that finances are better than expected so quickly, can only be viewed as tremendously positive news for the players and the league. I don't think anyone in their right mind expected revenue to exceed projections in the first year.

[Newfie John]

The big news is that the game is getting healthier. If it goes up to 45 though, It's proof that a 45 million dollar cap would have worked and they could have played halfway through that wiped out season at a 45 million cap.

[PDO]

The big news is that the game is getting healthier. If it goes up to 45 though, It's proof that a 45 million dollar cap would have worked and they could have played halfway through that wiped out season at a 45 million cap.

How so John? A 45 million cap wouldn't of necessarily worked this year. That 45 cap could also never go down.

This is good news in a "Pronger to 6.25 / year keeps looking better" way. ;)

Could hit 40? So that's saying it could go up what half a mill?

Big news.

That is some funky math.

[Mel]

If it goes up to 45 though, It's proof that a 45 million dollar cap would have worked and they could have played halfway through that wiped out season at a 45 million cap.

Not at all. The cap this year is not 45 million, and it most certainly should not have been last year.

The 39 million "cap" for this year is just the high end number used to create the maximun of the range based on projected revenue. (the 39 million figure assumes roughly 2.2 billion revenue - higher than projected).

Since projected revenue is much lower than 2.2 billion, the players have a sizable chunk of their salaries frozen in escrow. Whatever was paid out in excess of 54% of actual revenue, will go right back in the ownership's collective pocket, after the bean counters finish counting all the beans.

What the players last spring were proposing was an arbitrary 45 million hard cap with no relation to, or regard for revenue generated by the league. That's an entirely different matter.

[Yoata]

This is good news in a "Pronger to 6.25 / year keeps looking better" way. ;)

That is some funky math.

It'll take a lot more than that to make it look like a good deal.

Key word is Could.

[butterfly_style]

This is good in a retaining Chara & Redden kind of way.


Either one of those guys might figure they are franchise players and demand 20% of team salary . . .which we cannot afford and still keep everyone else.
I'm hoping we can sign Chara & Redden to long-term contracts based on their chances of winning more cups in Ottawa.

Maybe, if they have a chat with Marion "what's his name" and ask him about the Thrashers chances of winning a cup.
And, if it's important to him or not.

Despite what Don Cherry would say, I think most players have a goal of winning the stanley cup. . . .not just earning the most possible money.

[Yoata]

Either one of those guys might figure they are franchise players and demand 20% of team salary . . .which we cannot afford and still keep everyone else.
I'm hoping we can sign Chara & Redden to long-term contracts based on their chances of winning more cups in Ottawa.

Maybe, if they have a chat with Marion "what's his name" and ask him about the Thrashers chances of winning a cup.
And, if it's important to him or not.

Despite what Don Cherry would say, I think most players have a goal of winning the stanley cup. . . .not just earning the most possible money.

There is a league maximum so that's not possible, besides they wouldn't get that much elsewhere.

I'd say based on the vast majority of UFA movement over the past 10-15 years, that most players definitely have a goal of making the most possible money.

[KB in Kelowna]

Anyone want to bet that the increase of League wide revenues notwithstanding, some teams will still be crying poor ?

[butterfly_style]

Anyone want to bet that the increase of League wide revenues notwithstanding, some teams will still be crying poor ?
I gotta think the increase in revenue is due mostly to Canadian teams.
There are still teams south of the border that are not packing them in, and therefore still poor.

[Mel]

Anyone want to bet that the increase of League wide revenues notwithstanding, some teams will still be crying poor ?
If I'm not mistaken isn't Pittsburgh crying poor as we speak? One of the loudest criers under the old system as well. Now how much did they spend on FA's this year alone? It does make you wonder.
I gotta think the increase in revenue is due mostly to Canadian teams.
There are still teams south of the border that are not packing them in, and therefore still poor.
I read somewhere the strength of the Canadian dollar has helped the league, how I have no idea, but several Canadian writers have mentioned it.

[KB in Kelowna]

I gotta think the increase in revenue is due mostly to Canadian teams.
There are still teams south of the border that are not packing them in, and therefore still poor.

I was actually thinking of the tight wad owners in Chicago and Boston. However Florida, Carolina and Nashville will probably be in tough fiscally. The Penguins are in a mess also. To bad about the Canes and Proeds as they are decent teams on ice this year if not in attendance.

[Yoata]

If I'm not mistaken isn't Pittsburgh crying poor as we speak? One of the loudest criers under the old system as well. Now how much did they spend on FA's this year alone? It does make you wonder.

I read somewhere the strength of the Canadian dollar has helped the league, how I have no idea, but several Canadian writers have mentioned it.

What is the league minimum salary?

There's no question the Canadian dollar surge has helped the Canadian teams, they make their revenue in CDN and pay salaries in USD so it's caused a huge reduction in expenses and subsequently has allowed them to spend more on better players, making them more competitive and in turn increasing revenues.

[Mel]

What is the league minimum salary?

450K, or did you mean the salary floor on team payroll? I'm pretty sure it's around 21 million and change.

I went to NHLPA's web site to see what the Penguins spent assembling this current team... this is after they went broke under the old system.

3.5 Gonchar
2.1 LeClair
3.5 Palffy
2.3 Recchi
1.5 Thibault
1.0 Roy

13.9 million

What is wrong with this picture? After all the fans have suffered... I just get incensed when I hear teams cry poverty in the new NHL. Enough already!

Can't turn a profit? then shut up and MOVE somewhere else or FOLD!

[KB in Kelowna]

450K, or did you mean the salary floor on team payroll? I'm pretty sure it's around 21 million and change.

I went to NHLPA's web site to see what the Penguins spent assembling this current team... this is after they went broke under the old system.

3.5 Gonchar
2.1 LeClair
3.5 Palffy
2.3 Recchi
1.5 Thibault
1.0 Roy

13.9 million

What is wrong with this picture? After all the fans have suffered... I just get incensed when I hear teams cry poverty in the new NHL. Enough already!

Can't turn a profit? then shut up and MOVE somewhere else or FOLD!

If the Penguins are sellers near the trade deadline, which of those guys might be moved? Who would take any of them at those prices?

[Yoata]

My point is the Pens had to add significant salary to get above the team floor, and besides that they were trying to compete and obviously thought they could in the new NHL, and they probably would be if their players were playing up to potential, and then they might be drawing more and getting more revenue. Isn't that the whole point of having an NHL team, or should they just continue to dwell in the basement and have fans not bother to show up because of it???

[Yoata]

450K, or did you mean the salary floor on team payroll? I'm pretty sure it's around 21 million and change.

I went to NHLPA's web site to see what the Penguins spent assembling this current team... this is after they went broke under the old system.

3.5 Gonchar
2.1 LeClair
3.5 Palffy
2.3 Recchi
1.5 Thibault
1.0 Roy

13.9 million

What is wrong with this picture? After all the fans have suffered... I just get incensed when I hear teams cry poverty in the new NHL. Enough already!

Can't turn a profit? then shut up and MOVE somewhere else or FOLD!

I think there would still be plenty of interest in Gonchar, Palffy and Recchi, especially as rentals.

[Newfie John]

Right now, the revenues project that a 45 million dollar cap would work. This is the first year back after a long layoff.

Back in the days of the lockout, when a 45 million dollar cap could have been agreed upon, it was a lesser layoff. That would have been the first year back after the layoff, so who's to say that the revenues wouldn't be the same or even greater(because of the less time off) then as they are now? Thats my point.

[Mel]

If the Penguins are sellers near the trade deadline, which of those guys might be moved? Who would take any of them at those prices?

I think teams would be interested Thibault especially if their #1 goes down to injury. If you look at his numbers... this season definitely looks like an aberration. (4+ GAA this year, and I don't think he's ever been over 3.00 his whole career). A move to the right team might bring his numbers back where they belong.

Recchi might make a good rental for a contender, except I don't know how long his contract is... that might scare away any suitors.

I think LeClair is at the end of the line. I would say Pittsburgh is his last stop.

Palffy I believe is still a very hot commodity. This is a bona-fide point-per-game player that I think many teams would covet. His price tag is not out of line at 3.5 I don't think. His biggest question mark is injuries. Also he's another one that I don't know how long he signed for... But I don't think the Pens would have any trouble whatsoever moving Ziggy.

Gonchar - I saved the worst for last.... This guy, who's stock was so incredibly high in 2003-2004 - can be summed as nothing short of an utter failure for the Penguins. I wouldn't write him off, but he really needs to turn it around. This guy was a solid bet for 50-60 points a season, but is currently ranked 50th among NHL defenseman, with only 8 assists and 13 points overall. OUCH!

[Mel]

My point is the Pens had to add significant salary to get above the team floor, and besides that they were trying to compete and obviously thought they could in the new NHL, and they probably would be if their players were playing up to potential, and then they might be drawing more and getting more revenue. Isn't that the whole point of having an NHL team, or should they just continue to dwell in the basement and have fans not bother to show up because of it???

They are well above the floor. They did not have to spend 14 million... and the franchise was borderline bankrupt to begin with.

Now Mario comes along and says, despite increased attendance... the team will lose some 7 million this year.

Stevie Wonder could see this coming.

I have no sympathy for Pittsburgh at all. Neither the owners nor the fans, if the Penguins cannot get by in Pittsburgh even now, then it's time for the franchise to move. It's enough already.

[butterfly_style]

Right now, the revenues project that a 45 million dollar cap would work. This is the first year back after a long layoff.

Back in the days of the lockout, when a 45 million dollar cap could have been agreed upon, it was a lesser layoff. That would have been the first year back after the layoff, so who's to say that the revenues wouldn't be the same or even greater(because of the less time off) then as they are now? Thats my point.
I believe the lock-out had to happen.
It forced the hand of a number of things:

Rule change being one of them.
I don't think we would have seen the rule changes, if not for the need to spice up the game, in order to draw back fans.
Some or all the rule changes may have happened, but over a longer period of time.

Calling penalties as they were meant to be called.
Again, in order to make a more offensive game, the refs were told call everything and no matter what time of the game.
Pre-lockout, it would have taken a near murder to see a penalty in OT.

Aggresive marketing.
This definately was needed, but probably would not have happened, if the NHL did not feel its product was broken in some way.
Heck, we know that hockey is the best sport there is, but its a long road ahead to convince the American fans.

Pre lock-out the NHL was sliding.
I think we are headed in the opposite direction, now
Still a long way to go . . .but pointing that way anyway.

All these things and many more, were forced as a result of the lock-out.
Not just getting salaries in-line.

[Yoata]

They are well above the floor. They did not have to spend 14 million... and the franchise was borderline bankrupt to begin with.

Now Mario comes along and says, despite increased attendance... the team will lose some 7 million this year.

Stevie Wonder could see this coming.

I have no sympathy for Pittsburgh at all. Neither the owners nor the fans, if the Penguins cannot get by in Pittsburgh even now, then it's time for the franchise to move. It's enough already.

That's exactly what Mario is saying they are going to do if they don't get the new arena they need to be a viable franchise, that's why they're losing money, as well as the poor start by the team.

And they are not that far above the floor, but even if they were, again, you have to be to be competitive, what's wrong with trying to be competitive? It's not as if they're up against the cap, or anywhere near it.

Again, should they just stay at the minimum 21.5 and not give themselves a chance to win?

[Newfie John]

I believe the lock-out had to happen.
It forced the hand of a number of things:

Rule change being one of them.
I don't think we would have seen the rule changes, if not for the need to spice up the game, in order to draw back fans.
Some or all the rule changes may have happened, but over a longer period of time.

Calling penalties as they were meant to be called.
Again, in order to make a more offensive game, the refs were told call everything and no matter what time of the game.
Pre-lockout, it would have taken a near murder to see a penalty in OT.

Aggresive marketing.
This definately was needed, but probably would not have happened, if the NHL did not feel its product was broken in some way.
Heck, we know that hockey is the best sport there is, but its a long road ahead to convince the American fans.

Pre lock-out the NHL was sliding.
I think we are headed in the opposite direction, now
Still a long way to go . . .but pointing that way anyway.

All these things and many more, were forced as a result of the lock-out.
Not just getting salaries in-line.

All good points, but couldn't they have done that in the shortened season? I mean didn't they have a plan where they'd have a 3 week transition period for these things?

[Yoata]

I believe the lock-out had to happen.
It forced the hand of a number of things:

Rule change being one of them.
I don't think we would have seen the rule changes, if not for the need to spice up the game, in order to draw back fans.
Some or all the rule changes may have happened, but over a longer period of time.

Calling penalties as they were meant to be called.
Again, in order to make a more offensive game, the refs were told call everything and no matter what time of the game.
Pre-lockout, it would have taken a near murder to see a penalty in OT.

Aggresive marketing.
This definately was needed, but probably would not have happened, if the NHL did not feel its product was broken in some way.
Heck, we know that hockey is the best sport there is, but its a long road ahead to convince the American fans.

Pre lock-out the NHL was sliding.
I think we are headed in the opposite direction, now
Still a long way to go . . .but pointing that way anyway.

All these things and many more, were forced as a result of the lock-out.
Not just getting salaries in-line.

I agree for the most part, but I think they've gone a bit far with the every-little-touch-is-a-penalty bs, and the new NHL commercials SUCK.

[butterfly_style]

All good points, but couldn't they have done that in the shortened season? I mean didn't they have a plan where they'd have a 3 week transition period for these things?

If the NHL had gotten back to business with a shortened sesason, instead of a lost season, I think a lot of the "NEW" NHL would not have happened.
For the most part, I like the current style of play.
I don't like the Shootout, I don't like some games are three point games, and a few other things.
But mostly I am pleased.


I agree for the most part, but I think they've gone a bit far with the every-little-touch-is-a-penalty bs, and the new NHL commercials SUCK.
Agreed, the Refs still need to fine-tune their whistle blowing skills.
AND the marketers their . . . ummm . . . marketing skills, but we are going in the right direction

[Yoata]

I don't like the Shootout, I don't like some games are three point games, and a few other things.

Oh yeah the @#$%ing BS shootouts and all that goes with them, what a farce!

[Mel]

That's exactly what Mario is saying they are going to do if they don't get the new arena they need to be a viable franchise, that's why they're losing money, as well as the poor start by the team.

And they are not that far above the floor, but even if they were, again, you have to be to be competitive, what's wrong with trying to be competitive? It's not as if they're up against the cap, or anywhere near it.

Again, should they just stay at the minimum 21.5 and not give themselves a chance to win?

They are considerably above the floor... up close to 30 mill if I'm not mistaken. But, this is what I'm trying to say... in 2003-2004, the Penguins lost money even with a measly 23 million payroll. The NHL has changed but their franchise has not. They still play in Pittsburgh. No matter how much attendance has risen, it's nowhere near enough to recoup the millions they knew they couldn't afford to spend in their acquisitions.

The addtion of Gonchar, Palffy and Thibault alone would have been an impressive demonstration of trying to be competitive. And they still would have been over the floor.

I don't see why they need a new arena when they still cannot even sell out the Mellon. Even with impressive names like Crosby, Lemieux, Palffy, Recchi and Gonchar filling out the roster. It's high time they pack up and move to a city where they don't have to lose a fortune every year.

Really it's just my personal opinion, I've had quite enough of the Pittburgh Penguins crying the financial blues.

[Yoata]

They are considerably above the floor... up close to 30 mill if I'm not mistaken. But, this is what I'm trying to say... in 2003-2004, the Penguins lost money even with a measly 23 million payroll. The NHL has changed but their franchise has not. They still play in Pittsburgh. No matter how much attendance has risen, it's nowhere near enough to recoup the millions they knew they couldn't afford to spend in their acquisitions.

The addtion of Gonchar, Palffy and Thibault alone would have been an impressive demonstration of trying to be competitive. And they still would have been over the floor.

I don't see why they need a new arena when they still cannot even sell out the Mellon. Even with impressive names like Crosby, Lemieux, Palffy, Recchi and Gonchar filling out the roster. It's high time they pack up and move to a city where they don't have to lose a fortune every year.

Really it's just my personal opinion, I've had quite enough of the Pittburgh Penguins crying the financial blues.

I know what you're saying, but again I don't think they're that far above the floor, and obviously even what they did get isn't enough to make them competitive, perhaps you forgot that they basically had a minor league team in '03-04.

Why does any team need a new arena to make more money? It doesn't seem to make a ton of sense at first glance, but it seems to work, has a lot to do with what people expect for their money I guess, and a modern building is part of it, especially in a market like Pittsburgh where they apparently have new buildings for their other major league teams.

I don't think they're lying about staying if they get the new building, pretty sure they'd have to sign a long-term lease to get one and doubt they'd be willing to do so in order to just lose more money They certainly seem willing to go somewhere that you wouldn't think would be as good a hockey market if they get a new building, so from all indications, it seems pretty vital to the franchise, as it has been in most every other market. Seating capacity and luxury boxes I think it is about, as well as modern conveniences if you need the details.

I personally am glad the Pens have tried to be competitive this year, that they have given Mario and Crosby some talent to play with, I wouldn't want to see a franchise that a player like Mario has spent his whole career on, including winning back-to-back cups only 12 years ago, and one that has drafted Crosby, become extinct. I also think what they've done makes more sense financially than icing a minor-league team like they did in '03-04. You have to remember the revenue side of things as well, not just the expenses, they'd probably have lost even more had they not shown the fans (and the city) that they were trying to be competitive, and it might've also killed any chance they had to stay in Steeltown, and I think they genuinely want to do that, otherwise they'd have already left. No it hasn't worked out very well on the ice yet, they probably should've tried to balance O & D better and go with more depth than they did, but maybe they figured in the new NHL they could win games 6-5 and they probably counted on Thibault being good enough to keep them in games by himself, netiher has worked out, but there's still more than half a season to go and they have had injury problems.

[Mel]

I guess you're right, I should not begrudge Penguins ownership... who have done nothing but prove they want the team to both stay in Pittsburgh and be a winner. They have gone well beyond what is reasonable, as far as losses they're willing to endure to see this to fruition.

I suppose what really bugs me, is that despite an ownership group so completely and selflessly dedicated to their city... the fans just don't seem to respond. Some teams have owners not willing to spend, let alone spend money they don't have. Some cities wish they had a team but don't. Pittsburgh has it all, but in my opinion it has never been much of a hockey market. Aside from Mario's few Cup years, they have been a fairly weak draw. That's probably more where my resentment lies.

[Yoata]

I suppose what really bugs me, is that despite an ownership group so completely and selflessly dedicated to their city... the fans just don't seem to respond. Some teams have owners not willing to spend, let alone spend money they don't have. Some cities wish they had a team but don't. Pittsburgh has it all, but in my opinion it has never been much of a hockey market. Aside from Mario's few Cup years, they have been a fairly weak draw. That's probably more where my resentment lies.

On that I could not agree with you more, I have also lost patience with that market and its fickle "fans", but I do hope that they get their arena and can turn it around so Crosby and co. can carry on and improve on Mario's legacy.