NHL Salary Cap

[Dimaline312000 51]

With all this talk about a good number of quality free agents available around the league and players leaving and just everything that has been talked about so far this offseason it got me thinking. If the economy ever gets better and fans start attending more and more games and more teams get better financially. What's the most you think the NHL Salary Cap will ever get to? Or will there ever be a time where the Cap hits a number and just stays forever? Also what would you like the Cap to be?

This is an open discussion on the NHL Salary Cap from where it is now to where it may be in 5, 10, 15, 20 years or more. You can discuss where you want it to be and when and what you would like to do or see done by whatever team to make moves or just utilize the cap. You can be realisic with you numbers or no it's up to you. Open discussion on the Cap make it what you want. I just wanted to start this because I've been doing a lot of thinking about the Cap and the coming seasons.

Me personally I would have liked to have seen the Cap go up by at least $1 Million this season but it just wasn't a possibility. I would love to see the Cap get to $60 or $65 Million one day if possible within the next 10 seasons. Alot of that depends on what the economy does and if the NHL and NHLPA could ever reach that much of an agreement to allow teams that have the capability to spend more money be able to. I'm not sure what players I would want on the Wings roster as far as big name stars that aren't already on the Wings roster. I've love to have an All-Star Roster of nothing but great players that can buy into the Wings system and be a successful team. It would be nice to have a few more big names on the Wings roster and still be able to have anywhere from $3 to $8 Million in Open Cap space once a season started to make adjustments.

It's just the Wings and us fans are feeling the Cap Crunch the most in 08 and the 09 seasons and even though I'm comfortable with the roster we have now it would be nice to have a few more $Million$ in Cap Space to pick someone up once the season has started or make a trade later in the season if need-be. Just my thoughts. Please share how you feel about the Cap and what you would like to see happen or what you would do if you were in charge of the Salary Cap and an NHL Roster.

[Echolalia 2,961]

The cap is heavily influenced on how the overall economy is at the time. Because rates steadily inflate as the value of the dollar steadily declines, the cap could easily be expected to rise as long as the salary cap is enforced in the nhl. Of course there will be periods of fluctuation as the economy fluctuates, but overall I see an upward trend.

You have to keep in mind, though, that gaining 8M in capspace over a period of 5 years isn't as appealing as it sounds. Financial demand of players, equipment companies, management staff etc will all rise accordingly, and the cap is more acting in response to nationwide inflation. It may be commonplace to see 2nd and 3rd liners make as much as Datsyuk makes now in a decade's time, while the Ovechkins of the league make close to 20M. Many people hope that this becomes the case, as Zetterberg's and Franzen's contracts are still on a 2009 economic basis. If they're taking a caphit from the Wings at 7M and 4.5M respectively 10 years from now, right now that seems like a disaster, but if inflation continues the way it has been, those numbers might not be uncommon to see in someone of their production at that time.

Edited July 27, 2009 by Echolalia

[40#1Fan 0]

Spector posted the following article on Fox Sports today:

http://msn.foxsports.com/nhl/story/9858460...-not-be-falling

2010 salary cap might not be falling

[p_diddy_datsyuk_13 2]

Given the effect of inflation and constantly rising prices of all goods, it will always have an upward trend... maybe slowing for a year or two at a time, as it will do this year and possibly next, but the general trend sparked by constant inflation is up, so that is where the cap will go, due to its tie to revenues.

[Drake_Marcus 890]

According to reports from last week the season ticket sales are rolling in without much disruption compared to last year. At this point it looks like the league's finances are no worse than last year. Also, it's worth noting that the Canadian dollar is worth more than 90 cents compared to the American dollar, so the exchange rate isn't much of a factor either.

We'll have a better idea of where we're at in October. Just note that the sensible among us said all last year that the cap would be about the same this season. I know people called me out on it, but look where we are now- just about the same cap number as last year. Anyone who called for a sizable drop last year didn't understand when the league's revenue streams came in or how different sources of revenue effected the cap. Same will happen this year- no matter how cheery it looks in October there will be columnists saying the cap is going to plummet.

[Tommy_Like_Wingy 25]

From what I've read lately the economy is slowly on its way back up.

I think the cap will stay about the same next year and then rise in proportion to inflation.

[Drake_Marcus 890]

The cap is heavily influenced on how the overall economy is at the time. Because rates steadily inflate as the value of the dollar steadily declines, the cap could easily be expected to rise as long as the salary cap is enforced in the nhl. Of course there will be periods of fluctuation as the economy fluctuates, but overall I see an upward trend.

You have to keep in mind, though, that gaining 8M in capspace over a period of 5 years isn't as appealing as it sounds. Financial demand of players, equipment companies, management staff etc will all rise accordingly, and the cap is more acting in response to nationwide inflation. It may be commonplace to see 2nd and 3rd liners make as much as Datsyuk makes now in a decade's time, while the Ovechkins of the league make close to 20M. Many people hope that this becomes the case, as Zetterberg's and Franzen's contracts are still on a 2009 economic basis. If they're taking a caphit from the Wings at 7M and 4.5M respectively 10 years from now, right now that seems like a disaster, but if inflation continues the way it has been, those numbers might not be uncommon to see in someone of their production at that time.

Just look at the NBA! They have worse attendance than the NHL (but more market share, so they make more money), but their players already have reached the point where a tall, but average to slightly above average performing centre is getting 10 million a year and the superstars are looking for 20 million dollar contracts.

[Echolalia 2,961]

Exactly. It's only a matter of time before the nhl gets to that point. As this sport is a bit less popular than basketball, it will take a bit longer to get the amount of cash flow that they have to reach that point, and I suspect that time will be forced upon the nhl with inflation, not necessarily a huge influx of money. I imagine nba stars will be close to 35-40M at that point.

[Drake_Marcus 890]

Exactly. It's only a matter of time before the nhl gets to that point. As this sport is a bit less popular than basketball, it will take a bit longer to get the amount of cash flow that they have to reach that point, and I suspect that time will be forced upon the nhl with inflation, not necessarily a huge influx of money. I imagine nba stars will be close to 35-40M at that point.

Now that's a scary thought.

[Dimaline312000 51]

I agree that having $5 or $6 million more does sound more appealing that it may actually be but I'm just reminded of the Pre-Cap days when the Wings had and still do have the money to go out and get some big name players at they could get to buy into the Red Wings system a be successful. I'm grateful the Wings aren't one of these franchises that are in trouble financially. It would be nice to have a couple mill available at the start of the season and still have it in case we are in need of a dealine deal. I feel confortable with the team we have; don't get me wrong.

I think we we still have and be a quality team with quality players that know how to do their jobs and can do them well. I'm not going to start thinking about next June or anything but I do feel very comfortable going into the season with the team we have and the prospects we have lined up to come on the Wings roster in the coming years.

[egroen 384]

It's why I am a big fan of Holland's long-term salaries.

Inflation alone has averaged over 3% growth over the past bazillion years.

With a modest 4-5% revenue growth Franzen, Zetterberg and Datsyuk's cap hits will be much easier to swallow with the cap at least at $75-80m in the next 8 years.

Their contracts will be the equivalent of the following in today's cap hits:

Franzen: $2.86m

Zetterberg: $3.55m

Datsyuk: $4.41m

The equivalent of a $10.82m cap hit in today's dollars -- not a bad second line, an overpayment for a third line, but not nearly as bad as it would be with today's cap hit... assuming they aren't traded before then.

4-5% growth is indeed "modest", even taking the current recession into consideration.

Over the past 15 years:

The NFL has averaged more than a 13% average annual growth

The MLB has averaged more than 8%

The NBA has averaged over 11% growth

and the NHL has averaged over 10% growth

Ratings on NBC and Versus, as well as local cable, have been doing nothing but going up over the past decade. The NHL is most comparable in revenues and attendance to the NBA, but the NBA makes almost 5 times as much on their TV contracts. It is not a stretch of the imagination to think the NHL will close that gap a bit in the next 8 years. The last contract with Versus was over 10% more than the previous and the current contract is up in 2010/11 -- with the chance of ESPN and NBC wanting more of a slice of the pie.

Edited July 30, 2009 by egroen

[Louisville 112]

I just want there to be a cap discount for players a team has drafted. It's only fair that the team that drafted you should have a chance to keep you.

[mmamolo 287]

I have one thing to say and I know a lot of ppl here will hate it...Im not even sure if I would want it in the NHL....but Luxury Tax seems to be the solution to your dilema

[lfd250 1]

You forget the contract expires in the next couple years so there could be no cap. It's hurting the players that want the big money.