Thursday, March 30, 2006

Salary cap to rise to $46-million: THN

That figure is a big jump from $39-million — and is, I believe, bigger than what has been previously reported. Here's The Hockey News' senior writer Mark Brender:

NHL teams have been told not to expect changes in the salary cap formula for next season, meaning the upper limit is likely to be around $46-million.

The news comes after the NHL Players' Association put off making a decision on reducing the size of the 2006-07 salary cap increase until its summer meetings. The union has been considering the move in order to reduce player escrow payments for next season.

As the story goes on to say, this notion of lowering the cap's upper limit won't affect the amount of revenue available to players — they're still due 54 per cent — but it will change how lucrative the extensive summer of 2006 free agent market will be.


At 4:46 a.m., March 31, 2006, Anonymous Earl Sleek said...

Just thinking aloud here, but I don't think this is good news.

Salary cap goes up but so does escrow. Players who are locked into longer contracts may see their salaries effectively reduced, whereas free agents can expect full value on the first year of their contract.

This encourages shorter contracts and increased free agency, which in turn leads to more player movement annually. Will players retire with their draft teams any more? Will the requirements change to have a number retired?

Maybe some GMs might not mind shorter contracts, though, as it can help them from tying themselves into big mistakes and makes it easier to make a last-place team look momentarily like a contender (see Pittsburgh Penguins preseason picks).

At 4:49 a.m., March 31, 2006, Anonymous Earl Sleek said...

clarification: agents can expect full value on the first year of their contract.

I meant that they know what they are more or less truly signing for (better than those who signed deals a year before). Their full value on the contract will still be subject to escrow, I'd assume.


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