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TSN: Salary cap will hit $64 million for 2011-2012 season

Awesome news for big-market teams and not-so-super news for small-market teams, per TSN:

With the National Hockey League Entry Draft less than a week away and the potential for trades escalating this week and next with the free agency period looming, the salary cap will be going up by nearly $5 million next season.

Clubs and agents are being told next year’s salary cap will be set at an upper limit of $64 million with a floor of $48 million.

During the 2010-11 season, the salary cap had an upper limit of $59.4 million. The league’s cap - entering its seven season under the current collective bargaining agreement - has risen every year since the end of the NHL lockout when the cap was set at $39-million.

Via RedWingsFeed, Capgeek.com’s Twitter account’s hedging bets, going with $63.5-64 million. The NHLPA clearly chose to allow its 5% inflator to automatically apply here as we could be going into a lockout year, yielding a, “Make the money while you can, escrow be damned” approach.

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Comments

Alzy's avatar

Fantastic news, Tick Tock having more spending room is always good.

I do find it amusing though, the Wings, 7 years into the cap era, the cap era that was supposed to stop high payrolls, are about to spend about the same amount the spent pre-lockout.

Posted by Alzy from Cambridge, Ontario, Canada on 06/20/11 at 07:00 AM ET

AndrewFromAnnArbor's avatar

Yeah, the floor’s nearly where the cap was after the lockout.

BTW, George, shouldn’t that read 2011-2012 season?  As far as I know, even the CBA has yet to be worked out for 2012-2013, let alone the cap…

$21.6 million to get us two defensemen, a forward, a backup goalie, and raises for Eaves & Miller.  Looking good.

Posted by AndrewFromAnnArbor from Fortress Europe on 06/20/11 at 07:42 AM ET

George Malik's avatar

Edited, thank you.

Posted by George Malik from South Lyon, MI on 06/20/11 at 07:49 AM ET

Rdwings28's avatar

good morning, George

Posted by Rdwings28 on 06/20/11 at 07:53 AM ET

AndrewFromAnnArbor's avatar

Oops, I forgot Nick (how often do you hear that?).  $21.6 to re-sign Nick (please please please), two defensemen, a top-six forward, backup goalie, and raises for Eaves & Miller.  Suck it, Jarda.

No worries George.

Posted by AndrewFromAnnArbor from Fortress Europe on 06/20/11 at 07:57 AM ET

monkey's avatar

$21.6 million to get us two defensemen, a forward, a backup goalie, and raises for Eaves & Miller.  Looking good.

Word.

Posted by monkey from Finland on 06/20/11 at 10:01 AM ET

monkey's avatar

Oops, I forgot Nick (how often do you hear that?).  $21.6 to re-sign Nick (please please please), two defensemen, a top-six forward, backup goalie, and raises for Eaves & Miller.

Ha- what you really mean is $15.6 million to replace Rafalski, bring back Eaves and Miller, a backup goalie, and whatever other toys Holland can snag.

Posted by monkey from Finland on 06/20/11 at 10:03 AM ET

Avatar

Ha- what you really mean is $15.6 million to replace Rafalski, bring back Eaves and Miller, a backup goalie, and whatever other toys Holland can snag.

Don’t forget to add the $2.8M from Holland tricking some poor schlub into taking Happy’s contract off his hands…

Posted by Garth on 06/20/11 at 11:01 AM ET

cs6687's avatar

I agree with George. The five-percent bump the players union chose to enact is a quick money grab. There won’t be another lockout after this season, but the owners aren’t going to extend the current CBA. They’ll ask for another salary rollback and possibly attempt to eliminate the five-percent inflator clause. The NHL is quickly approaching pre-lockout status again, with the haves and have-nots.

Posted by cs6687 on 06/20/11 at 01:14 PM ET

Avatar

I don’t know how all the teams already in trouble will afford the floor.

Posted by Devils In The Details on 06/20/11 at 02:08 PM ET

J.J. from Kansas's avatar

I don’t know how all the teams already in trouble will afford the floor.

Posted by Devils In The Details on 06/20/11 at 12:08 PM ET

I’m a little surprised that some of those struggling teams haven’t pulled some outright cheating bullshit to help themselves in this situation.

Before they changed the rule about front-loaded deals, I would have liked to have seen a particularly spiteful organization (like the Islanders maybe?) drop a ten-year backloaded deal on a 36-year old.

$1M for each of the first six years and then $11M per year for the last four.

Posted by J.J. from Kansas on 06/20/11 at 02:14 PM ET

Slumpy's avatar

Budget NHL owners not liking the cap floor going up. Should see some trading salary dump/trades by a few of these cap floor teams on draft day.
Good to see Kenny has alot of cabbage to spend this summer on free agents. Was getting sick of hearing last few season that we have no cap space to add another player.

Posted by Slumpy from Detroit on 06/20/11 at 02:45 PM ET

SYF's avatar

Excellent.  More breathing room for Tick Tock to work his magic.

Posted by SYF from the team that re-signed KFQ and DFC by KFH on 06/20/11 at 02:55 PM ET

Avatar

Slumpy,

The “Budget NHL owners” are going to be grabbing short-term inflated contracts (for example Happy’s—not dumping them) because they need to bump-up their cap payroll at least temporarily for one year.

————————
For example the Panthers have 18.3M committed next year with 11 signed. Even after recalling Steven Reinprecht from Germany and adding his 2.2M contract that means it’s 20.5M and 12 signed. Leaving 27.5M for 11 guys (assuming they carry 23). Their 3 highest AHL contracts are 1.6M, 1.3M, and 1.1M so adding those means 15 under contract with 23.5M left to spend on 8 players.

23.5M to spend on 8 players is nice (avg of 2.94 per player left), but how many of the top free agents are willing to take one year contracts with Florida?
—————————

Of the players 35+ (those likely to agree to one year deals) how many are willing to say forget the Cup chance, I’ll just go for the money grab to help get those cap floor dwellers to hit the minimum spending necessary? Jason Arnott might be one—but he already has a ring and would probably expect to get traded at the deadline anyways. How many more will be like him?

So yes I expect you’ll see salary dumps—-but it will be from the ceiling teams last year towards those floor teams. And it will be for the Daymond Langkow, Olli Jokinen,  type contract players..

Posted by dca from Alexandria, VA (Bugsy's Bar) on 06/20/11 at 08:49 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.