shortcat1 Posted June 1, 2006 Share Posted June 1, 2006 (edited) tsn.ca put out an article stating that Ted Saskin has told the free agents that NHL's revenues are way higher than predicted. The resulting benefit is that the salary cap will go up to between 43 & 45 million dollars. An interesting paragraph near the end indicates that the NHLPA is trying to organize some system that, in effect, will not allow the salary cap rise as much in the future. (That's how I understand it anyway.) http://www.tsn.ca/nhl/news_story/?ID=167508&hubname= :king: :hlogo: :king: Edited June 1, 2006 by shortcat1 Quote Link to comment Share on other sites More sharing options...
InsaneHABSfan Posted June 1, 2006 Share Posted June 1, 2006 tsn.ca put out an article stating that Ted Saskin has told the free agents that NHL's revenues are way higher than predicted. The resulting benefit is that the salary cap will go up to between 43 & 45 million dollars. An interesting paragraph near the end indicates that the NHLPA is trying to organize some system that, in effect, will not allow the salary cap rise as much in the future. (That's how I understand it anyway.) http://www.tsn.ca/nhl/news_story/?ID=167508&hubname= :king: :hlogo: :king: Thanks shortcat1. I was waiting to hear something about this somewhere. This frees up some extra money for the Habs so maybe they can go after a very gifted offensive player most fans want here. I like how they want to reduce teh escrow so that the next salary cap will not go up so high. Quote Link to comment Share on other sites More sharing options...
kaos Posted June 1, 2006 Share Posted June 1, 2006 Actually its just the opposite, they want to reduce the salary cap so the escrow payments arn't so high. BUt league revenues keep rising, so the escrow payments shouldn't be that bad. I would imagine a salary cap of about $44 Million dollars Quote Link to comment Share on other sites More sharing options...
InsaneHABSfan Posted June 2, 2006 Share Posted June 2, 2006 Actually its just the opposite, they want to reduce the salary cap so the escrow payments arn't so high. BUt league revenues keep rising, so the escrow payments shouldn't be that bad. I would imagine a salary cap of about $44 Million dollars Ooops. Me fingers were not typing what my mind was thinking..... Quote Link to comment Share on other sites More sharing options...
The-Habby2919 Posted June 2, 2006 Share Posted June 2, 2006 Id imagine that BG has quite a bit of money to work with this summer seeing as how the Bell was sold out every game.... I hope he does something BIG! :hlogo: Quote Link to comment Share on other sites More sharing options...
shortcat1 Posted June 2, 2006 Author Share Posted June 2, 2006 Actually its just the opposite, they want to reduce the salary cap so the escrow payments arn't so high . BUt league revenues keep rising, so the escrow payments shouldn't be that bad. I would imagine a salary cap of about $44 Million dollars I don't understand... what are escrow payments? :?- :?- :?- :king: :hlogo: :king: Quote Link to comment Share on other sites More sharing options...
InsaneHABSfan Posted June 2, 2006 Share Posted June 2, 2006 I don't understand... what are escrow payments? :?- :?- :?- :king: :hlogo: :king: From what I understand it is money held back from the players (a certain %) which is geared to the salary cap. If the league revenues are higher than projected than the escrow money goes back to the players and the salary cap is adjusted each year. Players hate esrow as it is their money being held back but it is in the CBA. I am sure kaos has this down pat. I understand the NBA cap crud better than the NHL one and this happens in the NBA every year. Quote Link to comment Share on other sites More sharing options...
Tony Posted June 2, 2006 Share Posted June 2, 2006 From what I understand it is money held back from the players (a certain %) which is geared to the salary cap. If the league revenues are higher than projected than the escrow money goes back to the players and the salary cap is adjusted each year. Players hate esrow as it is their money being held back but it is in the CBA. Don't forget, if the league doesn't make enough revenu than they use the player escrow money to compensate for the league loss in revenu. Quote Link to comment Share on other sites More sharing options...
InsaneHABSfan Posted June 3, 2006 Share Posted June 3, 2006 Don't forget, if the league doesn't make enough revenu than they use the player escrow money to compensate for the league loss in revenu. Yup, something I forgot to add, thanks Tony. The NHL CBA is a tough one and for me confusing. Anybody on Habsworld.net a Capoligist? (Careful I did not say proctologist) I did find this and it is somewhat helpful: http://proicehockey.about.com/od/thenewnhl...ry_cap_expl.htm Quote Link to comment Share on other sites More sharing options...
Komisarek the Cruncher Posted June 3, 2006 Share Posted June 3, 2006 Yup, something I forgot to add, thanks Tony. The NHL CBA is a tough one and for me confusing. Anybody on Habsworld.net a Capoligist? (Careful I did not say proctologist) I did find this and it is somewhat helpful: http://proicehockey.about.com/od/thenewnhl...ry_cap_expl.htm Not that I know every details of the CBA, but to keep it simple, the CBA entitles the players to earn a certain % of the league revenues (which are clearly identified and specific per a formula). Depending on the size of the revenues, the players are entitled to a certain % (54% up to 2.2billion$ and the % increases if the revenues exceed 2.2 billion). At the beginning of a season, the league estimates the league revenues for the year and then they calculate the % owed to the players. During the season, the players get 85% of that amount (85% of their paycheck) and 15% (the escrow amount) is put in an escrow account that nobody can touch (teams and players). At the end of the season, once all revenues are determined, the league can calculate the exact amount owed to the players based on the formula x% times to tal revenues. Once they have that figure, they release the % escrowed to the players (say 13%) so that in the end, all the players salaries in the league get the exact % they deserve per the formula. If, for some reason the league gets so much more revenues that the escrow amount doesn't cover the % owed to the players, they release the full escrow amount and the teams have to pay the extra amount to get to the exact amount owed to the players. Therefore, the cap is a figure set at the beginning of the season based on the etimate of the league revenues (which is based on the prior year figures plus certain assumptions and facts), so that the players will get in return that guaranteed % in return. Since its all based on estimates, the escrow is used to make sure they get exactly the amount they deserve per the formula set by the CBA. I guess it was a bit more complicated to explain then I thought. Anyways, hope that this helps. If you have any questions, do not hesitate to ask. Quote Link to comment Share on other sites More sharing options...
InsaneHABSfan Posted June 3, 2006 Share Posted June 3, 2006 I guess it was a bit more complicated to explain then I thought. Anyways, hope that this helps. If you have any questions, do not hesitate to ask. Thank you for the effort Komisarek the Cruncher. Yes it does make sense now, much better than before. Just trying to understand it was a challenge and your effort to wade through it is appreciated. Quote Link to comment Share on other sites More sharing options...
shortcat1 Posted June 3, 2006 Author Share Posted June 3, 2006 QUOTE(Komisarek the Cruncher @ Jun 2 2006, 10:05 PM) I guess it was a bit more complicated to explain then I thought. Anyways, hope that this helps. If you have any questions, do not hesitate to ask. --------------------------------------------------------------------------------------------------- Thank you for the effort Komisarek the Cruncher. Yes it does make sense now, much better than before. Just trying to understand it was a challenge and your effort to wade through it is appreciated. Yes, KtC, thank you loads. It does clear things up. I had heard of the term before but it was never really an important issue for me so I didn't bother with looking up what it meant. Your effort is most appreciated. :king: :hlogo: :king: Quote Link to comment Share on other sites More sharing options...
Komisarek the Cruncher Posted June 3, 2006 Share Posted June 3, 2006 (edited) My pleasure guys I guess that my Chartered Accountant background and dealings with these types of contracts and escrow agreements makes easy for me to understand it. If any of you have a question, don't hesitate to ask, this is right in my field of expertise. Here's more info: The rumors of the players wanting a lower cap this year (more around 43M then 46M) is to lower the escrow because a lower cap would almost guarantee the players of being able to cash their full salaries next year, therefore the league would lower the escrow % (it was 15% this year) retained on their paycheck, therefore the players would be getting more cash everytime they get paid, instead of having to wait until the end of the summer to collect it. Expect this to be a major factor (interest earned on that extra cash at their salaries can be quite a big amount) in determining the cap this year. I expect the cap to be between 42 and 44 top, not the potential rumors of 46. Edited June 3, 2006 by Komisarek the Cruncher Quote Link to comment Share on other sites More sharing options...
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