People are not Ready for the Massive Cap Increases

You tell us, as you stated it.
The price of gold is affected by many factors. Two big factors are inflation and global politics. When people feel uncertain about their nation currency, they buy commodities like gold (or pork bellies, which is used to make bacon, which you might find in a bacon and lettuce and tomato sandwhich). This increase in demand leads to the price increase of commodities.
 
I don't think the players get a percentage of the league revenues like that? Maybe I'm wrong?

I'm pretty sure they get their contract amount and that's it? IIRC, NHL has truly guaranteed contracts vs some other sports leagues. If you make $850K now, I was under the understanding you don't get more when the league revenues go up. Maybe you have less go to escrow or something maybe, but you're not going to go from a $850K salary to walking way with more than $850K.
No, as far as I know, I could be totally wrong, but if I am, nothing makes sense. Revenues are split 50/50 with players, the only way that is possible is if there are true-ups. This is why escrow exists. Players don't get paid their full contract amounts, each payment has amounts deducted and put into escrow because we don't know exactly where revenues will end up. When that is know, escrow amounts are released to players based on actuals.
 
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This is going to work just like real life when one wins the lottery. Some will blow it instantly and are immediately back in debt. Others will plan, invest , and spend it as wisely as possible, and others will spend no differently than before and spend as little as possible
 
The price of gold is affected by many factors. Two big factors are inflation and global politics. When people feel uncertain about their nation currency, they buy commodities like gold (or pork bellies, which is used to make bacon, which you might find in a bacon and lettuce and tomato sandwhich). This increase in demand leads to the price increase of commodities.
Yes , and with US debt continuing to rise, gold will likely increase in price.
 
What would happen if the US economy took a dump and unemployment ballooned?

Owners still gonna get their cut

Or any number of things that turns over the "optimistic applecart". Fool me once - shame on you. Fool me twice - shame on me. Hopefully things go as optimistically as projected - I'll just not bet on it.
 
I know exactly what will happen.

GMs will think they have all the cap space in the world, sign a couple of atrocious deals the next few summer, and then all the teams will be in cap hell once again.
Spot on. And customers/fan will simply pay more for THE same product!!!
Increase cap space is by definition inflation.
 
Fans will pay more if they choose to. No one's forcing them to go watch the games.
while you are correct, IMO it is an easy take.
Some fans would probably like to watch and/or still go to a game, but can no more afford it.
Inflation, dollars decreasing in value is/can be good for the richer, but it is not good for everyone.

The point is and still is: the product still remains the SAME! Cap space going up or not. And I do beleive that at some point some market won't be capable to follow.
 
What does one need to do to get ready? Any neurodivergent person with strong pattern recognition skills can tell you ahead of time what will happen.

Cap dumping will hold less value in the next few seasons and teams like Florida with long term contracts locked in are well positioned to take advantage. After the three consecutive cap increases cap dumping will again become more expensive. The teams with money will still spend to the cap and the lower teams will still be spendthrift.

Young players will be getting big 2nd contracts and will have leverage with the increases.

The tax advantages and disadvantages of certain markets will widen.

Of course this all assumes that the economic climate of the 21st century continues to function which is a big assumption at this point.
 
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Which is exactly how it should work though....inflation.

But also, simple economics....if game is growing...there is more demand, more demand = higher price. If I'm running a business, I'm going to charge as much as I can for my products. If I'm not selling much, I'd have to lower my prices, if I'm selling out, raise prices until you see what the market is willing to spend.
You are correct, while I hate it, it works as you said. And the product ain't better!
 
The only thing this means for fans is more annoying confusingly legal gambling adverts, higher ticket prices, more expensive, lesser quality merch and an even bigger cockblock to watch the games on tv.

The player salary side to this will normalize quickly enough, i dunno why there's panic. Not like we should care.

You are correct, while I hate it, it works as you said. And the product ain't better!
It's all about squeezing as much profit margin as they can while carefully making sure the fans don't get too mad and revolt.

Kinda like how a Feudal gouvernment system treats it's peasants.
 
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Instead of over paying players they should up rookie contracts. Think NFL would also make the draft more exciting with trades. Imagine paying a Yakupov 7M right out the gate.
 
No, as far as I know, I could be totally wrong, but if I am, nothing makes sense. Revenues are split 50/50 with players, the only way that is possible is if there are true-ups. This is why escrow exists. Players don't get paid their full contract amounts, each payment has amounts deducted and put into escrow because we don't know exactly where revenues will end up. When that is know, escrow amounts are released to players based on actuals.
This is correct. @Figgy44 is incorrect. Players are not really paid $X per year. It's really more like X% of league revenues per year, which cannot be calculated until the end of the season. They put a piece of their pay in escrow in case there is a revenue shortfall. If there isn't, the escrow money is returned to them.

They can actually get a "true-up" if league revenues are much higher than expected. I think the league and PA have said this year this might actually happen.

I'm not ready to believe the projected Cap increase is a certainty. We've been down this road before (2015) where the Cap increase fell far short of the projection - what makes this time any more certain than that one?
I'm kinda in this camp. Pretty much no one can accurately gauge the economic winds that far out. Could be a recession or geopolitical event that wacks league revenues.

Then with the massive cap, players will be losing most/all of their escrow money if league revenues are short.
 
The people likely to be least prepared are NHL GM's who will quickly blast through all of the newly available cap space with startling speed.
 
It's never been a better time to be a decent 3rd liner, or has-been top 6 guy. If you thought Andrew Ladd's and Kyle Okposo's contracts were crazy in 2016, just wait and see what's coming up!
 
Lucas Raymond is playing like a $10M+ player that got an $8M contract, which will be deflated to being like $6.25M under a $113.5M cap.

Love having core players locked down until 2030.
 
Lucic 6x7M or whatever it was. Someone is going to sign some guys to absolutely outrageous contracts that will be terrible immediately and horrific in a few years.
 

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