Salary cap to stay in $57-million range
Both the NHL and the NHLPA confirm the players have voted to apply the five percent inflator, meaning the salary cap for next season will stay the same or rise slightly, just above $57-million. The league has been telling general managers and owners that the cap number could be $57.1-million, up a few hundred thousand from last season's maximum of $56.7-million.
And here's a look at how the salary cap's progressed postlockout, assuming $57.1-million is about where it lands for next season:

In a general sense, a flat cap indicates flat revenues, although the 5-per-cent inflator we've heard so much about lately does tweak those results by about $2-million either way. Commissioner Gary Bettman asked the players to not use the inflator last season, but they disagreed and bumped the cap up to $56.7-million, which resulted in large escrow payments at the end of the year.
This time around, the NHLPA again wanted the inflator used so that the cap would remain relatively the same rather than fall into the $54-million range. The danger there is that, if revenues fall this coming season, as expected, escrow totals would be even higher than this past season and take a big bite out of players' paychecks.
No wonder we're hearing about two potential big stadium games.
If I had to guess where the cap's going in the future, my money would be on it remaining below $60-million for another season or two beyond 2009-10. If escrow continues to rise, the NHLPA will likely back off using the inflator and really tighten team payrolls on the top end.
And, by that point, we'll be looking at the two sides working on a new CBA. Oh joy.
UPDATE TSN is reporting the cap figure for next season will be $56.8-million. The salary floor, as always, will be $16-million lower at $40.8-million.
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What % was escrow this past season, and whats the predicted escrow for 2009-10 going to be?
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by Fauxrumors on Jun 26, 2009 11:29 AM CDT reply actions 0 recs
I believe it was about 15 per cent this season. Projecting it is not really possible as it’s based entirely on how much teams spend this off-season and the revenues coming in next year.
Blogging on hockey at fromtherink.com
by James Mirtle on Jun 26, 2009 11:35 AM CDT up reply actions 0 recs
“And, by that point, we’ll be looking at the two sides working on a new CBA. Oh joy.”
Should go just as well as the current ownership situation. Why do I have a feeling in 20 years I will be paying $5 to see these guys skate in a cornfield in December because the league imploded?
The population of Pominville keeps rising!
by Blackcapricorn on Jun 26, 2009 11:38 AM CDT reply actions 0 recs
Winnipeg might be able to afford a team then!
by Resolute on Jun 26, 2009 4:25 PM CDT up reply actions 0 recs
This time around, Bettman wanted the inflator used so that the cap would remain relatively the same rather than fall into the $54-million range.
James, it was my fairly clear impression that the NHL was pushing to NOT apply the 5%.
by Gerald on Jun 26, 2009 11:53 AM CDT reply actions 0 recs
I’m going to have to edit the post on this as I can’t find a source indicating either way. I’d thought I’d read coming out of his meeting with the PA that Bettman recommended they vote for the inflator.
Blogging on hockey at fromtherink.com
by James Mirtle on Jun 26, 2009 12:38 PM CDT up reply actions 0 recs
It seems to me that keeping the cap the same or slightly rising would be best for the majority of teams, since long-term, big money contracts wouldn’t be eating up cap room.
If the cap fluctuates up and down a bit over the next season, is it possible GMs will start setting up large contracts in terms of percentage of the season’s cap hit?
by Its Cold In Here on Jun 26, 2009 1:00 PM CDT up reply actions 0 recs
That’s not an option under this CBA.
Blogging on hockey at fromtherink.com
by James Mirtle on Jun 26, 2009 1:17 PM CDT up reply actions 0 recs
$40.4m to $56.8m is the salary range for 2009-10, according to Brent Wallace of TSN (on TSN’s draft day blog). Up only $100,000 from last year.
Hockey blogging can't get any flatter.
by saskhab on Jun 26, 2009 12:30 PM CDT reply actions 0 recs

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