yeah your right, but both factors obviously come into play when teams are handing out contracts they can't afford.
That's the point, they could afford them (because the government was giving them money). Once the government could no longer subsidize the league, teams had to rely on their profit margins, and they couldn't. But it would be noted that the teams who signed NHL talent to big contracts are NOT the ones that are folding. CSKA Moscow (Radulov) and SKA St. Petersburg (Kovalchuk) are pretty healthy franchises. It's the small market, periphery, teams that can't pay the bills. And no matter what contracts they've got on the books, those teams were going to sink because they don't make enough money to cover costs.
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