Comments on: The Globe and Mail: NHL and NHLPA Agree on Cap Formula http://onthewingsblog.com/2005/06/08/the-globe-and-mail-nhl-and-nhlpa-agree-on-cap-formula/ by true Citizens of Hockeytown Wed, 03 Dec 2008 23:42:18 +0000 http://wordpress.org/?v=2.6.1 By: Brian List http://onthewingsblog.com/2005/06/08/the-globe-and-mail-nhl-and-nhlpa-agree-on-cap-formula/#comment-43 Brian List Thu, 09 Jun 2005 12:03:00 +0000 http://onthewingsblog.com/?p=807#comment-43 Well, the facts are foggy right now, Ray, so we both could be misunderstanding it. Frankly, it's not really misunderstanding when there's little to even understand. It's just guessing. What I read is that they said the range of the cap is <B>projected</B> to be between $22-$24 million to $34-$36 million based on revenues they think the teams will have in Year 1. The overall cap numbers are based on percent of team revenue. So my interpretation is that those numbers may rise as revenues steadily increase. And then the floor is a moving floor. Well, the facts are foggy right now, Ray, so we both could be misunderstanding it. Frankly, it’s not really misunderstanding when there’s little to even understand. It’s just guessing.

What I read is that they said the range of the cap is projected to be between $22-$24 million to $34-$36 million based on revenues they think the teams will have in Year 1. The overall cap numbers are based on percent of team revenue. So my interpretation is that those numbers may rise as revenues steadily increase. And then the floor is a moving floor.

]]> By: Ray http://onthewingsblog.com/2005/06/08/the-globe-and-mail-nhl-and-nhlpa-agree-on-cap-formula/#comment-42 Ray Thu, 09 Jun 2005 05:13:00 +0000 http://onthewingsblog.com/?p=807#comment-42 I think you're misunderstanding the cap proposal (at least, as it's been reported.) Not only is there no possibility of a $27 million variance in caps, but there really is close to no variance in caps at all. The range that is quoted is not from $22-$24 million to $34-$36 million for a CAP. That's the total range for allowable payrolls. $22 million would be a FLOOR -- meaning that a team is required to spend at least that much. The variance is that the poorest teams would have a floor of $22 and a cap of $34, while the richest teams would have a floor of $24 and a cap of $36. Everybody else would see both their high and low salary points each scaled between those "extremes" of $2 million variance on either end. I think you’re misunderstanding the cap proposal (at least, as it’s been reported.) Not only is there no possibility of a $27 million variance in caps, but there really is close to no variance in caps at all. The range that is quoted is not from $22-$24 million to $34-$36 million for a CAP. That’s the total range for allowable payrolls. $22 million would be a FLOOR — meaning that a team is required to spend at least that much. The variance is that the poorest teams would have a floor of $22 and a cap of $34, while the richest teams would have a floor of $24 and a cap of $36. Everybody else would see both their high and low salary points each scaled between those “extremes” of $2 million variance on either end.

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