Speculation: Roster Building Thread LVI: Artemi, where art thou? In NY.

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Players hate escrow but 50% is 50%. The alternative is to have a lower cap that guarantees no escrow but that has the risk that if revenue goes up more then expected the players end up getting less than 50%

And that will in turn affect the distribution of wealth among players. Which is where a team like Toronto is today.

A bunch of $700K deals, and a top heavy set of earners.

Stars will always get paid... but that escalator helped created the mid tier contract. You'll see less of that, and more high earners, and minimum wage players.

The issue has been the rate of revenue growth.

Most cap teams are paying way more than the cap in actual salaries- and that is what affects the 50-50 imbalance and escrow kicking in.

The escalator however directly affects the cap.
 
Also, the team will need a #7 defenseman if Smith is bought out. Perhaps that guy is Manning for a year

Could be, but there are better options that Brandon Manning. If they work out a Names trade and a Smith buyout, then the team is fine going into the year.
 
What is? Are league revenue projections too aggressive?

That depends on your perspective. Is it too aggressive or are certain markets grossly under performing?

Saying yes to either would be correct.
 
This is obviously a topic worthy of consideration for hockey fans, but could one of you maybe start a separate business of hockey or CBA thread or something? It's no fun to come to the roster building thread, see 5-10 pages of new content and scroll through it all to discover it's all about the theory and practice of the league-wide salary cap... and not find much of anything about the Rangers actually building their roster. :)
 
This is obviously a topic worthy of consideration for hockey fans, but could one of you maybe start a separate business of hockey or CBA thread or something? It's no fun to come to the roster building thread, see 5-10 pages of new content and scroll through it all to discover it's all about the theory and practice of the league-wide salary cap... and not find much of anything about the Rangers actually building their roster. :)

We are in a bit of a holding pattern right now when it comes to the roster though. There’s not much to discuss.
 
Not always, some years it was less than 2%.

There's the Salary Cap. And there's actual payouts. Jamie Benn for example makes $4M more than his cap hit this year. That $13M in salary is what gets realized against the escrow- which to balance the 50-50 ratio between players and owners.

If the league underperforms- meaning all 31 teams against the projected HRR... then what the players actually lose in escrow is higher.

But the cap itself has a direct positively correlated relationship with the escalator %.

There's a multifactorial set of considerations to take into account.

The amount some players are making above their cap hit is normally pretty well balanced by the amount other players are making below their cap hit. There’s a push and pull, but it’s not that huge of an issue.

Also, the midpoint set by the league before the escalator is not a projection of next year’s expected HRR. In order for them to underperform the number calculated by the league, revenue would actually have to go backwards, which hasn’t happened yet. What has happened before is that revenue has underperformed against the escalator elected by the players.
 
I think teams should be able to designate one "homegrown" player as their "franchise" player. The cap hut of that player would be what the league average is. Anything over would not count against the cap.

Teams could do this each summer, but if you take that franchise tag off (or traded said player) the full cap hit of that player would count against the cap.

Example: Franchise designated player signs contract with an AAV of $12MM. Average AAV for the league is $6MM. Amount held against the cap would be $6MM.
Yes anyone homegrown should be like 3/4 (or whatever makes sense) hit or something like that. That would be really cool.
 
The amount some players are making above their cap hit is normally pretty well balanced by the amount other players are making below their cap hit. There’s a push and pull, but it’s not that huge of an issue.

Also, the midpoint set by the league before the escalator is not a projection of next year’s expected HRR. In order for them to underperform the number calculated by the league, revenue would actually have to go backwards, which hasn’t happened yet. What has happened before is that revenue has underperformed against the escalator elected by the players.

Do me favor and share the formula as to how the league calculates the mid-point.
 
Why are we criticizing the cap here? The salary cap is the greatest thing to happen to the New York Rangers since 2005. It forced the Rangers to go young. If there is no cap in 2005, they overpay for Khaubeboulin and Forsberg, and Henrik Lundqvist is stuck in Hartford and wouldn't have been called up unless he posted a .999 save percentage, a .032 GAA, won a Nobel peace Prize, and cured world hunger. There is no way Dom Moore, Petr Prucha, Blair Betts, 1st wave sniff the NHL. Ryan Callahan would have been stuck in the AHL and eventually traded for Rob Blake etc. etc. etc.

Do you not remember the utter nonsense that went on with Marek Zidlicky that led to his trade? Martin Richter had a great camp in 2001 yet they were utterly terrified to give him a cup of coffee in the NHL. Yes he never made it big but maybe that boosts his confidence and history is different.

None of the memories we have as fans the last 14 seasons are possible without the cap.

It's not perfect by any means and maybe they should have a franchise tag or something for one or two players, but to start hating on it and what it forced the Rangers to do is basically hating on the franchise IMHO.
 
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To be clear, the league HRR projection before the escalator is not a projection of the next season’s growth. It’s a projection of the final numbers from the previous year, which don’t get finalized until August. The escalator is there specifically to allow the players to try to anticipate the next season’s revenue growth. I’m not saying that the escalator has no part in this, but it’s more that it compounds the real issue.

The central reason for the high escrow is that almost every team in the league spends above the midpoint. The average team salary is well over 5% above and I think only two teams were below the midpoint last season. So if teams are spending above the midpoint, the players will pretty much always owe them money from escrow to put things back at 50%.

Yeah, and such a big deal is made about this when it just can be fixed with how the cap is calculated. It’s negotiation tactics, it’s something the player cares about hence it can be used as piece in the haggling for the next CBA.
 
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Do me favor and share the formula as to how the league calculates the mid-point.

“Preliminary HRR for the prior League Year multiplied by fifty (50) percent (the Applicable Percentage), minus [-] Projected Benefits), divided [/] by the number of Clubs then playing in the NHL (e.g., 30), shall equal [=] the Midpoint of the Payroll Range”
 
There has to be something better than what the NHL does currently. The product is boring.
The solution for the NHL is to impose a soft cap with luxury tax thresholds similar to the MLB. It'll help offset the advantage that teams in states without income tax have other other teams that are in states that tax heavily.

As for soccer, the MLS and USL should combine and have a relegation and promotion system like every other f***ing country has for the sport, but that's a discussion for another day.
 
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The solution for the NHL is to impose a soft cap with luxury tax thresholds similar to the MLB. It'll help offset the advantage that teams in state without income tax have other other teams that are in states that tax heavily.

As for soccer, the MLS and USL should combine and have a relegation and promotion system like every other ****ing country has for the sport, but that's a discussion for another day.
I agree that I would like to see MLS do that, but there's many reasons why the logistics aren't set up for it.

They doesn't mean they should never do it, but it would take a generation to install it properly.
 
“Preliminary HRR for the prior League Year multiplied by fifty (50) percent (the Applicable Percentage), minus [-] Projected Benefits), divided [/] by the number of Clubs then playing in the NHL (e.g., 30), shall equal [=] the Midpoint of the Payroll Range”

And the source of this is where?
 
There's a lot of middle ground between no financial restrictions at all and a relatively low hard salary cap.
I know, but I don't feel like getting into it much so I just used the most recent example, even if it was an extreme
 
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