Revenue sharing in the NHL...How does it work?

[sawchuk1971]

I was watching a video from tsn.ca and it had darren dreger saying the NHL has a revenue sharing system in place if the higher salary cap becomes unaffordable to small markets..

I got a question...how does the revenue sharing system work? luxury tax perhaps?

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[Yukon Joe]

I was watching a video from tsn.ca and it had darren dreger saying the NHL has a revenue sharing system in place if the higher salary cap becomes unaffordable to small markets..

I got a question...how does the revenue sharing system work? luxury tax perhaps?

No, not a luxury tax. NHL has a hard cap.

I believe it comes out of league revenues - almost certainly broadcast rights. Some amount of money that might otherwise have gone to the top 10 or so teams instead gets sent to the bottom 10 or so teams in order to equalize revenues.

 

[Dr Robot]

The top 10 teams in the NHL take 6% off their earnings then throw it at the bottom 20 and call them poors who need to stop complaining. The other leagues spread 50% across the board for reference.