2025-26 NHL salary cap. Estimated $92.5m, but could be $95-97m?
- Thread starter LadyStanley
- Start date
It has to be CBA negotiated with the NHLPA...
It can't be the CBA only allows 5% increase per year.
It can't be the CBA only allows 5% increase per year.
I'll be curious to see what they come up with. I'm sure having Utah and not Arizona is a huge boon to the bottom line of the league.
And the CBA doesn't expire until after 25-26 season... Unless the new CBA gets done by the end of this season. I don't see why the owners would give NHLPA leverage to demand a EVEN HIGHER cap just after one happened prior to the new CBA agreement going into effect.
I don't think the PA would risk going to the high end of $97 mill.
Based on last year's numbers, I believe escrow was at 6% and the PA ended up with about half of that back, thus a net of about 3% for escrow. That's kind of the range the PA prefers it being.
So, they'd sacrifice a couple of million of the cap to keep the net escrow in this 3% range, vs risk having it go up to 5-6% net after the numbers are all in.
Could see them push it up to $93-$94 mill if the escrow numbers are projected to remain close to the prior season.
Based on last year's numbers, I believe escrow was at 6% and the PA ended up with about half of that back, thus a net of about 3% for escrow. That's kind of the range the PA prefers it being.
So, they'd sacrifice a couple of million of the cap to keep the net escrow in this 3% range, vs risk having it go up to 5-6% net after the numbers are all in.
Could see them push it up to $93-$94 mill if the escrow numbers are projected to remain close to the prior season.
Based on Friedman's report, the PA has been floating the 95-97M cap to players as they talk to them in preparation for upcoming CBA talks. So, I think the PA wants it. And I think they wanted a bigger increase last yeat but they couldn't reach a deal with the owners. Paul Bissonnette was wondering if the league might want a 84 game shedule (with reduced preseason games in exchange.
Golden_Jet
Registered User
- Sep 21, 2005
- 26,210
- 13,566
No the MOU specifically has wording if the revenues exceed the 5% number, then can be increased further, as long as approval from both sides.
Tawnos
A guy with a bass
The current CBA explicitly allows them to exceed the 5% if both sides agree to it. This situation was anticipated. And I wouldn’t be surprised if the owners don’t really care much where the cap actually is, since they’re getting the same cut in the end anyway.
No but the players do seem to want, so from owners' point of view, it's a chance to get something from the players.
archangel2
Registered User
- May 19, 2019
- 2,777
- 1,734
Tawnos
A guy with a bass
Last year, when they discussed the possibility of this, all the owners seemed to want was an increase in the escrow cap... which is why it didn't happen.
LadyStanley
Registered User
CBA issue. The previous CBA had increases almost every season to NHL minimum. With cost-of-living increases of $100-250k annually negotiated.
Might increase ELC base max too from $950k.
LadyStanley
Registered User
Early discussion on future of salary cap.
$110m in 2027?
qc14
Registered User
- Jul 1, 2024
- 278
- 455
Seems inevitable if Friedman is putting it out there so strongly, and makes complete sense to me given everything we've heard about how the next CBA isn't a rewriting but a tweaking and both the owners and PA want a deal to happen.
Owners don't really care too much what the nominal cap number is as long as the 50/50 split remains, which it almost certainly will. PA can get multiple UFA classes in on the big cap raise rather than just one. GMs/league hockey ops people will have a more gradual transition which is much better from a sporting side and helps guard against a 2016 KD to the Warriors scenario.
Owners don't really care too much what the nominal cap number is as long as the 50/50 split remains, which it almost certainly will. PA can get multiple UFA classes in on the big cap raise rather than just one. GMs/league hockey ops people will have a more gradual transition which is much better from a sporting side and helps guard against a 2016 KD to the Warriors scenario.
qc14
Registered User
- Jul 1, 2024
- 278
- 455
Will be much higher with Atlanta, Houston, Arizona, and Kansas City are in the league
Tawnos
A guy with a bass
Will be much higher with Atlanta, Houston, Arizona, and Kansas City are in the league
Nah, not really. 32 teams at $6.4B in revenue averages out to $200m per team and a $100m salary midpoint. 34 teams at $6.8B per team still averages out to $200m per team and a $100m salary midpoint. Disclaimer: midpoint calculation is WAY over-simplified and for illustration purposes only.
Nobody expects those markets to be top earners for the league. They'll be somewhere around the middle so long as they're handled right. If not, they'll actually pull the cap down a little bit.
qc14
Registered User
- Jul 1, 2024
- 278
- 455
I totally agree with you, more just being tongue in cheek about expansion. I do expect expansion, especially if they're able to get back into Arizona and into Houston, to help with the next American TV deal even though that's a couple years further down the line.
Golden_Jet
Registered User
- Sep 21, 2005
- 26,210
- 13,566
So Gary and Bill are in Ottawa doing their annual visit
Now doing his Press Conference,
Got the cap question
Has no idea where those numbers came from, said numbers being thrown around are way high (can’t remember exact wording).
Also says there is a mechanism to do it, if agreed on both sides, (to go over the 5% increase.)
However he said the sides haven’t met, and that they haven’t discussed it.
www.tsn.ca
Now doing his Press Conference,
Got the cap question
Has no idea where those numbers came from, said numbers being thrown around are way high (can’t remember exact wording).
Also says there is a mechanism to do it, if agreed on both sides, (to go over the 5% increase.)
However he said the sides haven’t met, and that they haven’t discussed it.
Bettman: Michael Andlauer is going to take what was started and take it to the next level
NHL Commissioner Gary Bettman conducts a press conference with the Ottawa media to provide an update on the Senators and specially the franchise's quest to build on a new rink.
www.tsn.ca
Desert Panther
Resident Lurker
Will be much higher with Atlanta, Houston, Arizona, and Kansas City are in the league
The timeline for expansion may be an X-factor here too. There has been a lot of talk that the PA wants a piece of the expansion fees as part of their percentage of league revenues. If they negotiate it into the next CBA, it could cause a significant bump in the cap unless the owners specifically request it be excluded from the cap calculation.
Tawnos
A guy with a bass
I've been thinking a bit about this lately, and the players wanting expansion fees to be included in HRR and part of the cap doesn't make a whole lot of sense. All it'll serve to do it artificially bump the cap with HRR that wouldn't there the following year, leading to a worsened escrow situation. Unless they do it where the expansion fees get included in the HRR calculation over a longer time span.
Not that it would be the first time players don't quite think this kind of thing through, but it's not quite as simple as "expansion fees = more HRR = higher cap"
