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Wednesday, June 08, 2005

nhl- Cap story Confusing

from Bob McKenzie and TSN, Wednesday's story on the Globe and Mail's website is both interesting and confusing.
Interesting because it re-affirms the rumours that the NHL and NHL Players' Association have basically agreed on a macro-economic linked salary cap payroll system and also interesting because it's chock full of specific numbers, though these numbers are not too much different than what were reported in the New York Post 10 days ago.
But it's an extremely confusing story for the following reason:
The story says each team will have its own individual salary floor and ceiling and that this team-by-team payroll range will be determined as a percentage of each club's individual revenue, not as a percentage of league-wide revenue.
If this were indeed the case, it would be a huge victory for the NHL Players' Association, which would love nothing more than to allow larger revenue teams like the Toronto Maple Leafs and New York Rangers to spend much more than small revenue teams like the Nashville Predators and Phoenix Coyotes.
Think about it. Say for argument's sake, one NHL team has revenues of $100 million and another team has revenues of $50 million. If, as an example, the teams are permitted to spend 54 per cent of revenues on salaries, one team would have a cap of $54 million, while the other team would have a cap of $27 million. That is a $27 million spread between the two teams' caps and you can rest assured it will be a frosty Friday in hell before NHL teams sign off on that type of discrepancy.
And, in fact, the Globe and Mail alludes to the incongruity of that type of formula, but passes it off as saying it will be a "complicated" system....more...