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NHL Cap on the rise???


JMMR

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http://www.tsn.ca/nhl/news_story/?ID=14708...082&hubname=nhl

Canadian Press

12/15/2005 3:05:32 PM

SCOTTSDALE, Ariz. (CP) - The NHL's spirited comeback from its labour lockout appears to be good news for the bottom line next year.

A source at the NHL board of governors' meeting said current projections show next season's salary cap will be between $40 million and $45 million US.

The current team salary cap is $39 million, based on projected league revenues of $1.8 billion.

The higher the revenue, the higher the salary cap and the more players can make.

Sounds good, hope the Habs are once again willing to spend near the cap.

I wonder how many GM's are shocked that this has happened since after all it was believed that the 39 million dollar cap was originally too high for what league revenues would be this year.

On the other side of the coin the players should be happy because they will get their escrow money back and higher cap means more money next year.

EDIT: Please only use all Caps in a title if something is HUGE news, such as when the Habs traded for Kovy. Otherwise, there is no reason to be yelling.

[Edited on 12-16-05 by Fanpuck33]

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It is much harder as far as players complaining etc... for the cap to go down. If the NHL has 3 drops of fiscal responsibility, they won't raise the cap too much from year to year, but let it build over 5-10 years. As more fans return to the game and the game starts to gain momentum as an exciting, fan friendly product, the cap can go up more and more. Eventually it will reach an equilibrium and stop going up and down.

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Originally posted by simonus

wow.

there can be no equilibrium. What about inflation? What about population growth?

not moving would be moving. And it would always move.

[Edited on 12/15/2005 by simonus]

True. But doesn't Football keep a steady cap. I never heard of them raiisng and lowering it due to population changes and inflation.

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Originally posted by simonus

population changes and inflation make dollar number revenue growth

if you do not change the cap number, in real dollars the cap is going down.

So how does the NFL (the ideal pro sports league) work their cap?

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