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The Malik Report

More cap talk

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.

Continued

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Comments

Speedy's avatar

the genius of Bettman lives

Posted by Speedy on 05/24/11 at 12:29 AM ET

mrfluffy's avatar

This will cement a lock-out next year….

Thanks Gary. Ass.

Posted by mrfluffy from A wide spot on I-90 in Montana on 05/24/11 at 01:42 AM ET

WICNMKYzerman's avatar

Rather than moving these teams around, has there been any talk of contraction?  It seems to me that giving Canadian cities that deserve and can support teams is what should be done first, but once that is met maybe the league should just consider shutting down the teams that can’t do anything other than sit at the bottom of the salary floor and wait like a kid on Christmas for any profit sharing.  Teams like Columbus, Atlanta, Long Island, Florida and, of course, Phoenix constitute 5 teams that probably 2 could be moved (Phoenix/Atlanta), 2 could be axed (Columbus/Florida) and then the Islanders and other teams on the bottom would benefit by adding the top players from the contracted teams in a contraction draft.  Some cities are just meant to be minor league venues and should be left at that.

Posted by WICNMKYzerman from Detroit, MI on 05/24/11 at 11:43 AM ET

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About The Malik Report

The Malik Report is a destination for all things Red Wings-related. I offer biased, perhaps unprofessional-at-times and verbose coverage of my favorite team, their prospects and developmental affiliates. I've joined the Kukla's Korner family with five years of blogging under my belt, and I hope you'll find almost everything you need to follow your Red Wings at a place where all opinions are created equal and we're all friends, talking about hockey and the team we love to follow.