Friday, June 29, 2007

The new cap number

The National Hockey League Players’ Association and the National Hockey League announced today that the Team Payroll Range established for the 2007-08 League Year, pursuant to the Collective Bargaining Agreement, provides for a Lower Limit of $34.3 million, an Adjusted Midpoint of $42.3 million and an Upper Limit of $50.3 million.

3 Comments:

At 4:58 PM, June 29, 2007, Blogger saskhab said...

Can't believe we lost a season over this. Why is Bettman still around? $50m was on the table in Feb '05. And the PA was dumb enough to leave it as a hard, absolute cap not tied to revenues at all.

 
At 7:21 PM, June 29, 2007, Blogger Kel said...

The current CBA is a very different system than what the NHLPA proposed to "save the season" in 05. The most critical item in this CBA from the owners' point of view is not the cap level; it's "cost certainty", which says league-wide player salaries can't exceed a certain percentage of league-wide revenues. A cap, even if tied to revenue, doesn't achieve the same objective unless you're talking about a cap so low that even if every team spend to the cap the players share of revenue is still under the 55% or so. That, of course, won't be acceptable to the player. A $50M cap alone only guarantees that player salaries won't exceed $1.5B. That's not low enough for the owners, who project to see around $2.2-$2.2B in revenue and want a guarantee of $1.2B max on player salaries given that revenue level.

 
At 7:22 PM, June 29, 2007, Blogger Kel said...

By the way, the current CBA achieves cost certainty through the use of escrow withholding from player's paycheques.

 

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