To all: even in the 90's the Send were on a budget
The structure of the NHL means that there will always be small market teams that are either on a budget or losing money. This is because the 50% cap is based on the revenue of all teams and the large markets pull the number way beyond 50% of small market revenue. ie: the cap is at 80 mil and the Sens do not make 160 mil, and therefore for the Sens (and most other small market teams) the budget is not the 50% of the revenue that is agreed to by the players, it is closer to 60-70% of the Sens revenue, and therefore they impose an internal budget to ensure they break-even.
There is no way to avoid small market teams having to budget when they are not making the playoffs unless you dramatically increased revenue sharing so that every team actually got to spend 50% (ex: the NFL) of the revenue as opposed to some teams having to spend 65% and others 35%.
No matter how many teams you relocate you are not going to find 32 markets in NA that can generate the exact same amount of revenue. Therefore, without a higher % of revenue sharing the "budget" issue is not going to go away, and is not something that the small markets or new ownership or relocation...can really fix.