News Article: Brooks' Sources Say Cap Will be Flat

[KINGS17]

Sounds like the players will not invoke the escalator clause this time. Players already under contract who aren't big stars finally wised up.


http://nypost.com/2017/06/11/nhl-losses-have-union-stuck-between-a-rock-and-a-hard-place/

We are told by individuals who traditionally have advocated pumping the maximum amount of dollars into the system that the infusion of dollars generated by the addition of the expansion Vegas Golden Knights has altered the equation for at least this time around.

The players are probably correct in assuming there will be more total HRR in the pot next season with the addition of a 31st team.

Flatlining league revenue is one of the issues at the forefront of concern for a significant number of players and player agents that likely will lead to the installment of Chris Chelios, a hardliner from way back, as an ombudsman to the NHLPA as the union begins its preparation for the collective bargaining agreement negotiations that likely are on the 2019-20 horizon.

I guess Bettman won't get a handshake from Chelios after the owners win another round of negotiations.

The next part is where Brooks illustrates his bias and stupidity.

Flatlining revenue under a small-picture commissioner — whose objective seems to be maintaining a low cap/floor and a system that somehow conflates widespread mediocrity into an asset — is only one of the areas of player concern.

Revenue isn't flatlining due to Bettman. Revenue isn't growing due to the falling Canadian dollar. I know Brooks would like to see the Rangers outspend every other team outside of Toronto by $30M a season, but thankfully it's not going to happen.

Click to read more...

 

[Reclamation Project]

Oh boy, another negative thread!

 

[Keith Sweaty]

NY Post...

 

[Ziggy Stardust]

NY Post...

They're not the only source to report this though. Bill Daly said as such recently as well.

 

[johnjm22]

Brooks does have legit sources and has been ahead of the curve on some NHL related news items over the years.

I believe the cap being flat is what Daly and the NHL have been saying for a while now. It was just a question of whether the PA would invoke the inflator clause or not.

Chicago is obviously the team most affected by this.

 

[Stimpythecat]

We should be able to sign our RFAs. After vegas picks someone and we replace him with someone from the AHL, we may have $2-$2.5 million in cap space.

Caps won't be able to sign a few guys either.

 

[KingsFan7824]

Hopefully both sides can actually negotiate before the CBA expires, but since the NHL is dealing with the least amount of money of the major sports, we know that won't happen. Part 4 will probably have the same script as the original trilogy, but they'll add a new character or two.

 

[Herby]

This will hurt guys like Williams, he will probably have to decide between one last good sized contract from a non-contender or sign for less if he wants to win a fourth cup.

Most of the superstars in the league are already under contract for 4+ seasons at minimum, a guy like McDavid will get less than some of the other superstars.

 

[KopitarFAN]

Bob McKenzie just said the exact opposite, went as far as to say "Virtually no chance it is 0." Full tweet below:

NHLPA internal debate is whether to apply full 5% inflator or some lesser number than 5 but greater than zero. Virtually no chance it's 0.

https://twitter.com/TSNBobMcKenzie

 

[KINGS17]

Oh boy, another negative thread!

I LOVE EVERYBODY!!

 

[KINGS17]

Hopefully both sides can actually negotiate before the CBA expires, but since the is dealing with the least amount of money of the major sports, we know that won't happen. Part 4 will probably have the same script as the original trilogy, but they'll add a new character or two.

NHLPA is already Sabre rattling by even bringing up Chelios, just like when they brought in Fehr. I'm afraid the handwriting is on the wall.

Brooks does have legit sources and has been ahead of the curve on some NHL related news items over the years.

I believe the cap being flat is what Daly and the NHL have been saying for a while now. It was just a question of whether the PA would invoke the inflator clause or not.

Chicago is obviously the team most affected by this.

I don't feel bad for Chicago in the least. They started the lunacy with the Toews and Kane contracts.

 

[onlyalad]

I am going to put a different spin on this.
Kings are against the cap.
If it goes up 5% they are still in cap heck
Other teams will creep closer to the cap.
Next year more teams will be in cap heck, giving the Kings a more even playing field.
Ok wishful thinking

 

[Stimpythecat]

I think after signing the RFAs and replacing the guy vegas takes, we'll have $2-$2.5 million in space. A 2.2% inflator which is what last time was, will be $1.6 million.

If that happens, we have about $4 million in cap space with 23 contracts. This means we can sign a $5 million UFA winger if we bury a contract.

 

[johnjm22]

I am going to put a different spin on this.
Kings are against the cap.
If it goes up 5% they are still in cap heck
Other teams will creep closer to the cap.
Next year more teams will be in cap heck, giving the Kings a more even playing field.
Ok wishful thinking

The Kings are not in "cap heck" or cap hell for that matter. Whether the limit goes up or not, they'll be fine.

 

[mouser]

Bob McKenzie just said the exact opposite, went as far as to say "Virtually no chance it is 0." Full tweet below:

https://twitter.com/TSNBobMcKenzie

0% escalator and flat cap aren't necessarily the same thing. E.g. If league revenues year over year grew less then 5% then a escalator greater then 0% would be necessary to keep the cap from decreasing in 2017-18. Plus Vegas is entering the league, likely at below average revenue.

 

[Keith Sweaty]

They're not the only source to report this though. Bill Daly said as such recently as well.

Wasn't talking about the accuracy of the cap staying flat, more about his opinions on the cap system...

 

[Keith Sweaty]

Obviously, no one likes having to deal with the cap but It's definitely one of the things that makes me like the sport more than baseball/nba, etc. You have to be creative and it prevents team from just paying luxury taxes, etc.

I might just be the only one tho...

 

[Ziggy Stardust]

Wasn't talking about the accuracy of the cap staying flat, more about his opinions on the cap system...

Oh, in that regard, yes, Larry Brooks has his head firmly placed up the union's ass.

 

[KINGS17]

Obviously, no one likes having to deal with the cap but It's definitely one of the things that makes me like the sport more than baseball/nba, etc. You have to be creative and it prevents team from just paying luxury taxes, etc.

I might just be the only one tho...

You're not alone.

 

[Raccoon Jesus]

Obviously, no one likes having to deal with the cap but It's definitely one of the things that makes me like the sport more than baseball/nba, etc. You have to be creative and it prevents team from just paying luxury taxes, etc.

I might just be the only one tho...

Yep. For a while I would have been on board with a luxury tax, but that's ultimately not much better from the parity standpoint even if it's ok for revenues.

Will be interesting to see where this lands given Brooks' notes conflict with some other credible thoughts out there. Brooks can be a clown, but he's a well-connected one.