The Chicoutimi Cucumber Posted October 2, 2008 Share Posted October 2, 2008 http://www.canada.com/montrealgazette/news...9b-ac524c552ab2 I haven't heard much discussion about this, but I find it hard to believe that the economic chaos in the 'states will not have an impact on NHL revenues...with two implications: first, dodgy franchises like Florida and Nashville may finally give up the ghost; and second, the cap may go down. Of course, not claiming a great understanding of NHL finances, I could be wrong about both. Thoughts? How would a cap drop affect the balance of power in the league? Or our Habs? Quote Link to comment Share on other sites More sharing options...
simonus Posted October 2, 2008 Share Posted October 2, 2008 a cap drop would be really, really hard to enact considering how close to the cap many teams are. Perhaps some teams will move as the personal consumption rate for many families has already (and may continue) to go down. Quote Link to comment Share on other sites More sharing options...
habs rule Posted October 2, 2008 Share Posted October 2, 2008 Well the increase in league revenues has been mostly due to canadian teams success, however if the c$ were to drop for some reason then all hell will break loose. However the us$ is going down faster than the c$ so that should not be a problem. There will be some american teams that will fail or move (maybe to Canada), because some teams are hemorrhaging money already and a slow down would probably kill them. I think the habs would be able to deal with a lower cap just due to the number of young prospects that they have in the system. Tranna would be in trouble I would think. Reducing the number of teams may become a reality if the recession is long term. We may see 24 teams in the future because with all the credit crisis no can get the money to buy a team, so they may go under rather than be bought out. Quote Link to comment Share on other sites More sharing options...
Mont Royale Posted October 2, 2008 Share Posted October 2, 2008 a cap drop would be really, really hard to enact considering how close to the cap many teams are. I don't think so. I mean, the cap for this year is set. But if it were to drop for next season, every team has expiring contracts, buyouts, waivers, etc. that getting under wouldn't be a big issue. The cap is unlikely to drop so much that it would cause serious problems. Quote Link to comment Share on other sites More sharing options...
Prime Minister Koivu Posted October 2, 2008 Share Posted October 2, 2008 The cap going down would be really tough on some teams. I wonder if a reduced cap would drop salaries? I know it would drop the maximum contract allowed but what about market value in general? Quote Link to comment Share on other sites More sharing options...
Mont Royale Posted October 2, 2008 Share Posted October 2, 2008 The cap going down would be really tough on some teams. I wonder if a reduced cap would drop salaries? I know it would drop the maximum contract allowed but what about market value in general? Based on the effect a rising cap had on salaries, it can be surmised that a dropping cap would lead to reduced market value. Quote Link to comment Share on other sites More sharing options...
Sir_Boagalott Posted October 4, 2008 Share Posted October 4, 2008 with all the credit crisis no can get the money to buy a team, so they may go under rather than be bought out. Well apparently in the Betman years you dont even have to have money to buy a team, you just have to say you do. Its not like the eggheads at NHL HQ will look into it. Way to go Boots!! The Cap dropping would be interesting and problematic. I wonder how that would work. i.e. players who have multi year deals for maximum amount today and have the $ amount written into their contracts. If the cap drops wouldnt it be a breach of contract? I dont see the cap dropping by any large amount anyway. The US meltdown will only increase the already crazy high % that the Canadian teams generate. Over half the league revenue is from the 6 Canadian teams. i.e. instead of 60ish% it will be 75-80%. But Canada still wont be allowed to get another team. Quote Link to comment Share on other sites More sharing options...
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