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NHL’s salary cap’s upper, lower limits officially set

It’s officially official, per ESPN’s Pierre LeBrun:

NHL salary cap has officially been set at $64.3 million upper limit; $48.3 million lower limit

And, per TSN’s Darren Dreger, the all-important “mid-point”...

NHL salary cap set. Lower Limit=$48.3 Million. Midpoint=$56.3 Million. Upper Limit=$64.3 Million

This might explain the moves today…

 

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Comments

RWBill's avatar

What moves?  I haven’t been following closely.

Posted by RWBill from cruising Brush Street with Super Creepy Rob Lowe. on 06/23/11 at 05:26 PM ET

Avatar

What moves?  I haven’t been following closely.

Just a couple minor ones that will in no way affect the look of any teams…

Posted by Garth on 06/23/11 at 05:29 PM ET

RWBill's avatar

And I meant to say this recently but so much was going on, that was SO the right decision on the banner design and font!  Totally unique, distinct, and carries subtle meanings for Wings fans.

Posted by RWBill from cruising Brush Street with Super Creepy Rob Lowe. on 06/23/11 at 05:36 PM ET

Avatar

Lols at Philly…way to blow up your roster just for a goalie.  Of course if Philly wins the cup next year then I never said this…

Posted by Helm4Life on 06/23/11 at 06:30 PM ET

Bosephus's avatar

Pardon my ignorance, but can somebody very briefly explain the “all important mid-point” of the cap.  Never heard of it or its alleged importance…?

Posted by Bosephus from Behind enemy lines, Denver, CO on 06/23/11 at 07:27 PM ET

J.J. from Kansas's avatar

Pardon my ignorance, but can somebody very briefly explain the “all important mid-point” of the cap.  Never heard of it or its alleged importance…?

Posted by Bosephus from Behind enemy lines, Denver, CO on 06/23/11 at 06:27 PM ET

The mid-point is the de-facto salary cap for the lower earning teams.

If a team spends at or above the mid-point, they disqualify themselves from Phase I revenue sharing.  This revenue-sharing is the dollars paid to those teams to help them pay salaries to the players.  How much they get and how exactly they qualify for it are much more complex issues, but the bottom line is that a team that doesn’t expect to make up to or more than the league average revenues is costing themselves millions of dollars in revenue sharing by choosing to exceed the midpoint.

The mid-point is also the first number that gets set and is what the cap and the floor is based on.

Bottom line is that the mid-point is what the league figures will be 57% (or the players’ share) of the average NHL team’s revenue.  They figure the mid-point and then tack on $8M to get the cap number (built in to allow the higher-earning teams the opportunity to spend closer to what they expect 57% of their revenues to be).  They also build the floor to $8M below that to force teams from simply not paying for players.  It’s supposed to guarantee that all teams are trying to be competitive.  There are lots of problems with the floor, but we’ve discussed the hell out of that lately.

Posted by J.J. from Kansas on 06/23/11 at 07:48 PM ET

monkey's avatar

Just a couple minor ones that will in no way affect the look of any teams…

Yeah, nothing to speak of.

Posted by monkey from Praha, Česká republika on 06/23/11 at 08:41 PM ET

monkey's avatar

Lols at Philly…way to blow up your roster just for a goalie.

Cap issues, cap issues, cap issues.  Once they locked in Bryzgalov they needed to clear about $10 million just to be able to afford to ice a team.  Probably one of those guys was gone whether they signed the goalie or not.

Posted by monkey from Praha, Česká republika on 06/23/11 at 08:46 PM ET

Slumpy's avatar

Wonder if Richards trade was Bobby Clarke approved? He is the God of that franchise and I’m sure was asked his two cents beforehand.

Flyers always keep it exciting with trades and free ageny signings every year it seems.

Looks like the Kings are playing in Europe to start next season which means they have a good chance of winning the SC. Read a stat that showed last several years one of the Euro travelling NHL’s has won it.

Posted by Slumpy from Detroit on 06/23/11 at 10:44 PM ET

Bosephus's avatar

Great info JJ, much appreciated.

Posted by Bosephus from Behind enemy lines, Denver, CO on 06/24/11 at 12:34 PM ET

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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.