Cap Number Rises to $50.3 Million

It appears as though the Salary Cap for this coming season will be on the rise. While that was already assumed, what comes as a surprise is the fact the cap will be over $50 million.

According to the Globe and Mail, the new cap number for the 2007/2008 season will be 50.3 million. The new cap floor will be 34.3 million.

Here is the link to the story:
http://www.globesports.com/servlet/story/RTGAM.20070629.wsptscap29/GSStory/GlobeSportsHockey/home

This is certainly going to give some teams that extra cap room they need to make a major acquisition come July 1st.

With 4 big time free agents available in Ryan Smyth, Scott Gomez, Chris Drury and Daniel Briere, having such a large cap number is going to get a significant number of teams in on the bidding war for one of these player’s services.

I believe having such a major increase in cap number is a big mistake by both the NHL and the NHLPA. Indeed, the league has done better than expected after shutting down in 2005 and coming back with quite a bit of uncertainty in terms of fan interest.

But still, to have teams barely keeping afloat, owners screaming of big losses and then to go out and raise the cap number from 39 million to over 50 million in a mere 2 years is a bit much.

Because there is a cap floor, there wont be anything like previous years where some teams spent almost 50 million more in salary than others. However, the question that remains is whether some of these smaller markets can keep up with the rising cap floor?

Take a look at the Predators? I mean they are about to be sold and have gutted their team of some talented players with potentially more to come. With a current owner there incurring losses by the minute ever since the team’s inception, will he really want to spend 34 million in salary?

Or how about the Penguins? They still play in a money losing arena and will for at least a couple more seasons. Despite having a good team that will be a playoff team for years to come, they are not completely out of the red and fully stabilized just yet.

And then you have teams like the Panthers, Thrashers, Coyotes who are in a dogfight to lure fans to their games. I cant see them as being profitable.

It makes you wonder why the league is so dead set on saving these teams, when their financial decisions do nothing but harm them.

To me, the increase in the cap number promotes owners to be more stupid and more foolish in terms of spending. All it gives them is more room to make mistakes, instead of forcing them to learn from them by managing their budget better. The evidence of this will be overwhelming the next few months.


22 Responses to Cap Number Rises to $50.3 Million

  1. nonhl2005 says:

    Hopefully this will weed out the contenders from the pretenders. If you can't earn a profit from a 34mil player salary then move over or move out. I disagree with the last statement, the cap raise WILL FORCE these owners and GM's to be better budget managers. Remember, this is only year 3 of the cap. Rome wasn't built in a day, they are getting there, now all we need is to get rid of Buttman and things will be fine.

  2. EasternHockey says:

    All this is going to do is give teams the ability to sign average defensement for +$7mil / year salaries

  3. NHLman says:

    Isn't there some sort of revenue sharing that makes it possible for these small market teams to have a payroll of at least the cap minimum? Wasn't that the whole point of the mandatory spending? So that revenue sharing doesn't just go into the owners pocket.

  4. nordiques100 says:

    you are right, there is. problem though is how long will people like wirtz, like jacobs want to keep doing this? especially when they see the teams they are helping financially pass them in the standings and getting some big playoff revenue while they get nothing.

    the bigger the cap floor, the more help teams like the caps, preds, etc will need.

  5. TheSource2659 says:

    With 42 million rapped up in nice little bow in Toronto the Leafs now have close to 8.3 million to spend on the upcoming free agent frenzy day I now see them being major players in signing anyone of the big name free agents with this kind of room but we'll see JFJ sucks in all the right places lol. I hope this team does something smart with there money and I hope Jason Blake is one of the Leafs upcoming aquisitions same as Kariya and Calder.

    The Source.

  6. Milohabs says:

    People are so stupid and just don't get it. The Cap is not an issue or a problem. The issue is EXPANSION, especially into NON-HOCKEY markets.
    Hamilton would sell out every game, but NOOOO, let's move the Predators to Kansas City. Do these people even know what hockey is???

    Like any business you need to have a budget. Just because the cap is at 50mill, not every team should or will spend to that number. Tampa's owner said he'll only allow up to 44-45 mill this year. Nashville is dumping salary to be more cost effective. This is the world of professional sports. We see it in all sports and it's just the way it goes. 

  7. TheCanadianHozer says:

    I think that if a team can't attract enough fans to be able to survive then there probably should not be a team there in the first place (probably).

    The fact that a team can't go and offer Daniel Briere 20 Million for 1 season at least gives lower teams a chance to land him, but if its a shithole city where the fan base is 3 old men who don't even know where they are, then the player won't sign there… its his choice.

    That being said, it will be interesting to see where some of these players go. The only problem is that even though the Cap goes up, so does the asking price as players know there are more bucks to be thrown at them. I honestly hope that the league never goes to 32 teams!

  8. ferron says:

       That puts Montreal in a great position now, we almost have a full lineup and we now have around 15 millions left. Best case scenario we(Habs) only sign Danny Markov and save are money for deadline trades and next year UFA(Heatly), we now can make an offer to Markov, he wont refuse even if it means comming to MTL!

    Latends-Koivu-Ryder
    Higgins-Plek-Kovy
    Laps-Begin-Chipchura
    Kosti-Grabovski-Murray/Milroy/Locke/S.Kostitsyn

    Markov-Markov
    Streit-Komi
    Bouillon-Dandenault/O'Byrne/Gorges  maybe a few games for Valentenko just to see a little bit of what he's made of?

    Huet-Halak/Price-Danis

    Huet will have a great year(becomes UFA next season) if not injured this year and  will be worth a couple decent draft picks at the deadline, get ready to see him leave if Price and Halak have a decent year. Dandenault and Danis are all but gone already!

  9. neilios says:

    Good news for the Canucks they have 11 million to play with now.Iam hearing Kariya for 4.5mill,SOuray for 5 mill,and have 2 mill to play with at the deadline.Not a bad looking line up when they get those 2 in the lineup.

    Sedin      Sedin     Kariya
    Naslund   Morrison Grabner
    Pyatt        Kesler   Cooke 
    Cowan      Linden   Burrows

    Souray     Ohlund
    Salo         Bieska
    MItchell    Edler
           Luongo

       

  10. PaulK123 says:

     I love how this guy bashes somebody who's father is lying on his deathbed, a guy who was still able to do the day to day work of a GM while this was happening to him, and then signs off acting all professional.

    You are also an idiot, Blake's agent is asking for AT LEAST 5 Million, Kariya will probably get like 4.5 and Calder like 1.5, so in total that would be 11 million dollars. So I don't think the Leafs will be able to afford that?

     Why is everybody getting so worked up about Kyle Calder, we don't need another power forward we need another defensive forward, my idea, the poor man's Peca, Kevyn Adams for about 1.5 million instead of Calder, sure he won't score as many goals but he is very good defensively.

     I like Blake a lot but his agent is asking 5 million each for at least 5 years, he is currently 33 years old and will Blake be worth 5 million dollars when he is 38, my bet is no. I think we sign Kariya for 2 years/5 million each, which leaves us with 2 million for the trade deadline if needed.

    Here is my line-up:

    Kariya__Sundin__Antropov
    Tucker__Wellwood__Bell
    Stajan__Adams__Steen
    Ponikarovsky__Pohl__Deveraux

    Kaberle__Kubina
    McCabe__Coliacovo
    Gill__White

    __Toskala__
    __Raycroft__

     If we remain un-injured an every player plays to their potential this team will make the playoffs, but they are both big if's.

  11. PaulK123 says:

    yes because we all know that every player in the NHL wants to come to a team that will not win the cup for a while because they can't attract any big free agents, its like a vicious cycle, no free agents want to come to Montreal, so nobody signs.

  12. kamullia says:

    Just a few points to keep in mind.

    The cap can also come down, and this year, unlike the past years, the players will have to put and expect to lose their escrow money. And we all should remember how unhappy were the players of the fact that they saw having to possibly pay money back to the NHL and therefore to the teams.

    Now the question becomes how much revenue sharing will be available with a $50M cap? That is something to bear direct significance. And if as I suspect, the assistance for a bottom-capped team ($34M) becomes $7-$10M, we are talking about not being that far off the pace. Everyone will be affected, but not to such a big degree. However, the teams with the deep pockets must be ecstatic with the news. Toronto, Montreal, Philadelphia, Detroit, and NYR at least. Hmmm….NYR. Does this mean they will buy players like candy in free-agency again? Sather sure has a history of it. I can see my friend from Sheepheads bay screaming at the top of his lungs: “NOOOOOOOOOOOOOOOOOOOoooooooooooooooooo.”

    The only team that is going to simply be obliterated by these news is Nashville. In order to have part into revenue sharing, you must sell a certain minimum of tickets, and apparently Nashville will not make that quota. Which means they will be all on their own without assistance, and with a gutted team, and Kariya and possibly others not coming back, they might as well truly do a fire-sale of everything worth getting rid of. Vishnevski, Radulov, Tootoo, Mason, Arnott, Ledwand, Dumont, et al.

    Last man turn the lights off and close the door.

    And as to the comment on Pittsburgh, you are correct that this is not good news for them, because the revenue they get out of Mellon Arena is lacking due to the suite issue. However, the one saving grace they have this year, is that Pittsburgh has quit selling season tickets of any sort (partial or otherwise). How’s this good news? Well, the reason why they quit selling them is because they have sold the equivalent of 13,500 season tickets for the upcoming season, which is a new record for the Pens. The new record beat the previous record set by the ’92-’93 Penguins (now that was a team). And the only reason the Pens quit selling the season tickets was not for lack of enthusiasm. They have put further requests for season tickets into a waiting list. But the team, smartly, wanted to ensure that there was enough of a portion of tickets available for individual ticket sales, and that way hopefully accommodating fans of every budget.

  13. 2006 says:

    The Canucks do not want Souray

  14. lookche says:

    50 million is too much IMO. From 44, thats the difference of a superstar player – how would a team like Washington (or another stingy owner) keep up with that?

  15. DJTOKid says:

    Buddy wake up!! The canucks have..

    Naslund(6m)      Morrison(3.5m)            Cooke(1.525m)
    Sedin(3.575m)   Sedin(3.575m)             Pyatt(1.575m)
    Cowan(700k)      Keslar(1.75m)             Burrows(500k)
    Still paying Chouinard 1.1m, Grabner will cost 850k, and you don't count Lindens money.

    Mitchell(3.5m)           Ohlund(3.5m)
    Salo(3.5m)               Bieksa(550k)
    Edler(550k)

    Luongo(6.75m)

    that totals 43million and tht doesn't include Lindens salary, which wouldn't be much but still something.

    Sheldon Souray will not get a penny less then 6million a yera and even that will probly seem low for what he might get.

    Next time you want to get all gitty and go on a shopping spree make sure you have the funds to do it. Make it realistic, you wouldn't buy a viper if you make 30k a year, so why would you spend 9million in salary when you barely have 7.

  16. DJTOKid says:

    Buddy wake up!! The canucks have..

    Naslund(6m)      Morrison(3.5m)            Cooke(1.525m)
    Sedin(3.575m)   Sedin(3.575m)             Pyatt(1.575m)
    Cowan(700k)      Keslar(1.75m)             Burrows(500k)
    Still paying Chouinard 1.1m, Grabner will cost 850k, and you don't count Lindens money.

    Mitchell(3.5m)           Ohlund(3.5m)
    Salo(3.5m)               Bieksa(550k)
    Edler(550k)

    Luongo(6.75m)

    that totals 43million and tht doesn't include Lindens salary, which wouldn't be much but still something.

    Sheldon Souray will not get a penny less then 6million a yera and even that will probly seem low for what he might get.

    Next time you want to get all gitty and go on a shopping spree make sure you have the funds to do it. Make it realistic, you wouldn't buy a viper if you make 30k a year, so why would you spend 9million in salary when you barely have 7.

  17. ferron says:

     Souray at 5mil/year, i don't think so! Next year Timonen(13 and 3some assists) will be making 8 MILLION Dollars and Markov(6goals and 43a)will make around 6mil and you think Souray(26g-38a-64pts)will sign with the Vancouver Canucks for 5 mil/year, have another one!

  18. ferron says:

       Your absolutely right. Also we almost ruind the game implenting a 44 mil cap now we raise it by 6 MIL/Year? This is way too much it's just like before now players can pick where they wanna play, every team has enough money to sign players now and maybe now that the cap is at 50.3 the Tampa Bay Lightning won't have to get rid of there BIG 3, now the NY Ranger can go out and sign Drury, maybe now Yashin would not look that bad in the habs lineup, all i'm saying with this anouncement(cap raise) today everything changed, some teams that could not afford an UFA, NOW CAN. Example it's great news for NewJersey and the NYI but not for the team who got rid of good player at the last deadline.

  19. mrdude75 says:

    It's good to weed out the freeloader teams with minimal fan bases and reward the teams that actually have the fans who go out evert night to see thier team.

  20. passionch says:

    Too much! 

  21. neilios says:

    That was my own shopping list for the Canucks,but they are after kariya if they can get him for 4.5mill,Jason Aliison for mill and a bit,and Vishnovski for 2 mill or less.This was coming from Lebrun and Ludzig on The Score and Dregger from TSn Insider.

  22. DJTOKid says:

    Your dreamin bud, I've never heard any of them link Kariya to Van. Your high on drugs, your the same clown that said the Canucks could sign Souray for 5mil a year. Then I wtch Lebrun and koolie say he's a 6 to 6.5mil dman minimum. I think your delusional.

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