The Malik Report
by George Malik on 05/24/11 at 12:43 AM ET
On Saturday, SportsBusiness Journal’s Liz Mullen provided the most notable NHL-rleated “Tweets” in a long time by stating that NHL deputy commissioner BIll Daly informed the audience at the Sports Lawyers Association’s conference in Washington, DC, that the salary cap would rise to somewhere between $60.5 to $63.5 million next season, depending on whether the NHL’s revenues exceed $3 billion and/or whether the NHLPA applies its 5% cap inflator. Today, the Montreal Gazette’s Pat Hickey confirms the news:
The cap is based on hockey related revenue and Daly told the group, which included a number of salivating agents, that the NHL is expecting to post record revenue of close to $3 billion for the 2010-11 season. That’s an increase of more than $200 million from the previous season.
Since the CBA was reached after the 2004-05 lockout, league-wide revenues have increased by $750-800 million and the cap has increased by more than $20 million a team. The salary cap last season was $59.4 million and Daly said that it could jump to between $60.5 million and $63.5 million for next season.
But the salary cap increase won’t be good news for all teams. As the cap goes up, so does the floor. That’s the minimum amount of money a team has to pay for its players and that will create a burden for some of the NHL’s have-nots. While overall revenue is up, we continue to hear stories about major losses in Columbus, Atlanta, Long Island, Florida and, of course, Phoenix which has been kept on life support by the NHL. You might recall that the NHL owners said the lockout was necessary because the average salary had reached $1.8 million. The average salary is currently more than $2.3 million.
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