Tuesday, June 26, 2007

The cap figure

It sounds as though we'll have a definitive answer as to the size of the salary cap for 2007-08 by Friday, which is a good thing considering the free agency frenzy begins at 12:01 a.m. Sunday morning.

How high will it go?
Talk at the entry draft last weekend in Columbus indicated the cap could be as high as $50.5-50.9 million.
What we're waiting on is the leaderless players' union, which has to decide whether or not to bump the cap figure up an additional 5 per cent into that $50.9-million range. By all accounts, that's going to happen, which will give everyone a couple more quarters to throw around on Sunday.

UPDATE The Globe and Mail's Tim Wharnsby has more here.


At 5:50 PM, June 26, 2007, Blogger Kel said...

Given that the players' share of revenue is not going to be affected by the cap number, to the players, what the cap number affects is how the money is distributed among themselves. The players are divided by two groups: those with a contract and those without a contract. If the cap is higher, it benefits the players whose contract s expire this summer (who expect to be signed by a team). They'll get higher salaries than their counterparts whose salaries were decided under a lower cap. Escrow will be higher for every player with a high cap, but in the end, the ones with new contracts win. I wonder if many players realize this ,however.

At 2:11 AM, June 28, 2007, Blogger J. Michael Neal said...

I suspect that it isn't important how many players realize this. How many agents realize this is a different matter.

At 8:24 PM, June 28, 2007, Blogger Kel said...

Actually it depends on whether agents are paid based on pre-escrow or post-escrow contract amount. I suspect it's pre-escrow, in which case agents are all for high cap and larger pre-escrow salary.


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