1. Teams can exceed the cap by up to 10% of the cap, but must match dollar for dollar for every amount they go over (ex. if a team goes over the cap by 5 million, they must pay an additional 5 million into a league revenue sharing program)
2. All the money generated by teams utilizing the Luxury Tax will be dispersed to all the other teams in the NHL which are ONLY ABOVE the cap floor by 50% or less (ex. If the cap floor is 50 million and the ceiling is 70 million - all teams with a cap of 60 million or less would get an equal cut of the Luxury Tax pool, as opted)
3. ALL TEAMS which ACCEPT money from this Luxury Tax pool get a new, modified floor and MUST exceed the cap floor by at least 110% of the Luxury Tax money they were given (ex. If the cap floor is 50 million and Team X receives 1 million in Luxury Tax sharing, their new cap floor becomes 51.1 million) or they can opt for only a percentage of the revenue sharing revenue offered (under the same guidelines as above, 110% rule, etc, etc) or opt out of the revenue sharing all together and the revenue would then get dispersed to the rest of the qualifying teams - If for any reason there were revenue left over from the revenue sharing system, it would get evenly split between the 30 teams and has no salary cap implications(basically it would just go back into the owner's pockets)
4. Teams are given a home grown cap relief player - Every team can designate ONE player on their roster which is given a "Franchise Tag"(player must have been drafted by the team to qualify) - 20% of this players salary will NOT count against the cap (this applies to both the floor and the ceiling) but WILL count towards the luxury tax total if it takes the team over the cap - This tag must be applied yearly (ex. If player X was tagged in 2009, it does not mean they are automatically tagged in 2010 and the team can opt to tag a different player, if desired) - They still cannot exceed the league max contract and if they are traded, the team absorbing the contract absorbs 100% of the contract as the cap hit
I think this system would actually pump MORE money into the league from the bigger teams which are willing to pay it, however, since it has a HARD cap value of only 10% over, teams will not be able to go out and just buy up all the talent in the league, or simply throw money at their problems (ala NY Yankees) - Also, the smaller markets would be given more money, which they would HAVE to spend on their team, to improve their on ice talent... this also encourages players to stay where they came from, thus letting markets attach themselves to players closer and fan bases to have investments in individual players (good for marketing)
I don't see how this could do anything but positive things for the league and think, if anything, it would actually create BETTER parity...
Edited by stevkrause, 28 September 2010 - 02:23 PM.