KK Members Blog
Entries with the tag: cba
You threw the bums a dime in your prime, didn’t you?
Training camps are a mere five weeks away, and yet numerous NHL veterans remain unsigned, actively searching for work in a league that has priced them out. While the current CBA has seen salaries skyrocket at the top of the league, the middle and bottom-end players have been pinched. Though it’s difficult to have any actual sympathy for folks making millions to play a game, the facts are undeniable: record setting long-term contracts for the Kovalchuks, Luongos, and Keiths of the world, while solid NHLers such as Bill Guerin, Paul Kariya, Andy Sutton, Eric Belanger, Marty Turco and Jose Theodore remain on the sidelines. Sure, these guys may be past their prime in many cases – but they still make a difference. Unfortunately, if Mathieu Darche is available and willing to play for $500k, or a rookie at $750k, why sign a 3rd or 4th line plugger like Belanger for $1.5 or $2 million?
In light of the recent debacle, known as the Ilya Kovalchuk contract saga, and listening to and reading wide ranging opinions on various radio stations and print media, I can’t help but thinking back to the lockout and lost season of 2004-2005.
The main issue of the CBA negotiations was the idea of creating “cost certainty” for the owners. Gary Bettman wanted to ensure that player salaries were linked to league revenues. After a lost season, Bettman and the owners were able to get the salary cap or “cost certainty” that they desired. Player’s salaries are now guaranteed to be 54% of league revenues and teams must meet a salary cap floor.
The salary cap for the 2005-2006 season was set at $39 million with a salary cap floor just over $21 million. In comparison, the current salary cap for the 2010-2011 season is set at $59.4 million with a cap floor of $43.4 million. The salary cap has increased by over 40% in its first five seasons of existence and the cap floor has more than doubled! That is a pretty impressive growth rate considering that returns in the stock market and most people’s pensions have shrunk. What is even more perplexing is that the salary cap floor is now more than 10% higher than the original salary cap.