Salary Cap Implications...

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Salary Cap Implications...

Postby interstorm on Thu Oct 23, 2008 9:26 am

salary cap implications (for league - not just penguins) based off of a steep decline in the value of the canadian dollar.

http://ca.news.finance.yahoo.com/s/22102008/6/finance-canadian-dollar-tumbles-below-80-u-s-cents.html

...sorry if this was already posted.
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Re: Salary Cap Implications...

Postby DelPen on Thu Oct 23, 2008 9:28 am

But wouldn't a stronger Ammerican dollar increase the cap?
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Re: Salary Cap Implications...

Postby newarenanow on Thu Oct 23, 2008 9:47 am

DelPen wrote:But wouldn't a stronger Ammerican dollar increase the cap?


No, they base the revenues off of the american dollar, which is 1.00. A stronger Canadian currency will increase those revenues and a weaker one will decrease it.
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Re: Salary Cap Implications...

Postby MelicharSux on Thu Oct 23, 2008 10:09 am

Everyone make a trip to Canada now
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Re: Salary Cap Implications...

Postby TheHammer24 on Thu Oct 23, 2008 10:15 am

newarenanow wrote:
DelPen wrote:But wouldn't a stronger Ammerican dollar increase the cap?


No, they base the revenues off of the american dollar, which is 1.00. A stronger Canadian currency will increase those revenues and a weaker one will decrease it.


You are correct. In theory, a stronger US dollar will increase consumption, which would increase revenues. This effect will be negligible, and considering the current state of spending, the salary cap stands a good chance of not rising next year.
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Re: Salary Cap Implications...

Postby Three Stars on Thu Oct 23, 2008 10:18 am

MelicharSux wrote:Everyone make a trip to Canada now


Sweet. More quarters for the quarter slots in Niagara Falls.
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Re: Salary Cap Implications...

Postby newarenanow on Thu Oct 23, 2008 10:45 am

If for some reason the cap would go down, stay stagnate, or increase a minimal increment after this season, and for a few seasons beyond that, how many internet GMs would be screwed because they gave huge contracts to players assuming the cap would continue to rise around $5/6M per year?
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Re: Salary Cap Implications...

Postby pensfan20 on Thu Oct 23, 2008 11:18 am

newarenanow wrote:If for some reason the cap would go down, stay stagnate, or increase a minimal increment after this season, and for a few seasons beyond that, how many internet GMs would be screwed because they gave huge contracts to players assuming the cap would continue to rise around $5/6M per year?

I hope that the cap stays the same this summer. I have faith in RS and i think even with the cap staying the same the pens would put a good team together. BUT, teams that forked out the HUGE overpriced longterm deals would end up regreting it im sure. Probably be a few Yashin scenarios would happen, i would imagine.
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Re: Salary Cap Implications...

Postby TheHammer24 on Thu Oct 23, 2008 11:26 am

For teams that are willing to spend the cap, the more it increases the better. I can't see how a cap stagnation helps the Pens,
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Re: Salary Cap Implications...

Postby DelPen on Thu Oct 23, 2008 11:31 am

newarenanow wrote:If for some reason the cap would go down, stay stagnate, or increase a minimal increment after this season, and for a few seasons beyond that, how many internet GMs would be screwed because they gave huge contracts to players assuming the cap would continue to rise around $5/6M per year?


So you are saying Jeff Finger's contract is like that condo you tried to flip in Miami? You paid way above market price thinking it would be a bargain in 2 years?
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Re: Salary Cap Implications...

Postby DelPen on Thu Oct 23, 2008 11:33 am

TheHammer24 wrote:For teams that are willing to spend the cap, the more it increases the better. I can't see how a cap stagnation helps the Pens,


The one way it helps is we have are core locked up for what is below current market price while other teams have overpaid for lesser talent like TB and malone, Philly with Richards and carter and I'm sure there's others out there. A stagnation will also lower the cost for servicable players to round out the roster which is what we need.
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Re: Salary Cap Implications...

Postby newarenanow on Thu Oct 23, 2008 11:38 am

DelPen wrote:
newarenanow wrote:If for some reason the cap would go down, stay stagnate, or increase a minimal increment after this season, and for a few seasons beyond that, how many internet GMs would be screwed because they gave huge contracts to players assuming the cap would continue to rise around $5/6M per year?


So you are saying Jeff Finger's contract is like that condo you tried to flip in Miami? You paid way above market price thinking it would be a bargain in 2 years?


In a way yes.

Just during the last two offseasons, there were a lot of people that wanted to pay huge contracts to players like Hossa, Gaborik among others, saying we'll fit the rest of the team under because the cap will continue to rise $5-6M/per year.

I was just asking those people, if the situation occurs were the cap decreases or remains stagnate, how would they handle the situation. Because at that time, their response was to worry about it then. It may be here, so what do we do if those contracts were signed.
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Re: Salary Cap Implications...

Postby DelPen on Thu Oct 23, 2008 11:54 am

newarenanow wrote:
DelPen wrote:
newarenanow wrote:If for some reason the cap would go down, stay stagnate, or increase a minimal increment after this season, and for a few seasons beyond that, how many internet GMs would be screwed because they gave huge contracts to players assuming the cap would continue to rise around $5/6M per year?


So you are saying Jeff Finger's contract is like that condo you tried to flip in Miami? You paid way above market price thinking it would be a bargain in 2 years?


In a way yes.

Just during the last two offseasons, there were a lot of people that wanted to pay huge contracts to players like Hossa, Gaborik among others, saying we'll fit the rest of the team under because the cap will continue to rise $5-6M/per year.

I was just asking those people, if the situation occurs were the cap decreases or remains stagnate, how would they handle the situation. Because at that time, their response was to worry about it then. It may be here, so what do we do if those contracts were signed.


So the bright side Hossa will probably lose $5-10 million of income for his next contract :D
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Re: Salary Cap Implications...

Postby Kraftster on Thu Oct 23, 2008 12:03 pm

DelPen wrote:
TheHammer24 wrote:For teams that are willing to spend the cap, the more it increases the better. I can't see how a cap stagnation helps the Pens,


The one way it helps is we have are core locked up for what is below current market price while other teams have overpaid for lesser talent like TB and malone, Philly with Richards and carter and I'm sure there's others out there. A stagnation will also lower the cost for servicable players to round out the roster which is what we need.


You really think the Richards deal, looking at it in its entirety is overpayment?
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Re: Salary Cap Implications...

Postby laholm64 on Thu Oct 23, 2008 1:40 pm

DelPen wrote:So the bright side Hossa will probably lose $5-10 million of income for his next contract :D


Wouldn't that be poetic justice! I imagine this converastion: "Sorry Marian, we don't have anything to give you, but I hear LA has some cap room. Oh and good luck with that cup dream in LA".
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Re: Salary Cap Implications...

Postby Idoit40fans on Thu Oct 23, 2008 1:46 pm

laholm64 wrote:
DelPen wrote:So the bright side Hossa will probably lose $5-10 million of income for his next contract :D


Wouldn't that be poetic justice! I imagine this converastion: "Sorry Marian, we don't have anything to give you, but I hear LA has some cap room. Oh and good luck with that cup dream in LA".


Signing a 5 year contract with LA would be a great way to get a couple shots at a cup. Those shots would likely be in years 4 and 5 of the contract, but still they're gonna be that great soon.
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Re: Salary Cap Implications...

Postby interstorm on Thu Oct 23, 2008 2:58 pm

Idoit40fans wrote:Signing a 5 year contract with LA would be a great way to get a couple shots at a cup. Those shots would likely be in years 4 and 5 of the contract, but still they're gonna be that great soon.


i don't know - the kinds seem to be a team always 2-3 years away...every year. they are one of those organizations that have "potential" and don't seem to really ever do anything with it. they are, in my opinion, the anti-red wings (actually the anti-red wings would have to be a team like atlanta or columbus...but you get the point).
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Re: Salary Cap Implications...

Postby TheHammer24 on Thu Oct 23, 2008 3:03 pm

I would think Chicago is a few years away, but they're idiots for that Huet and Campbell deal. Should have laid low in the offseason, missed the playoffs again, then went after a goalie this year when there are more available.
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Re: Salary Cap Implications...

Postby laholm64 on Thu Oct 23, 2008 3:17 pm

interstorm wrote:
Idoit40fans wrote:Signing a 5 year contract with LA would be a great way to get a couple shots at a cup. Those shots would likely be in years 4 and 5 of the contract, but still they're gonna be that great soon.


i don't know - the kinds seem to be a team always 2-3 years away...every year. they are one of those organizations that have "potential" and don't seem to really ever do anything with it. they are, in my opinion, the anti-red wings (actually the anti-red wings would have to be a team like atlanta or columbus...but you get the point).


I've been hearing that about Columbus, Atlanta and Florida for years now. They all had a ton of high draft picks and did nothing good with them. I'm so not sold on the talent in LA.
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Re: Salary Cap Implications...

Postby pensfan20 on Thu Oct 23, 2008 3:24 pm

laholm64 wrote:
interstorm wrote:
Idoit40fans wrote:Signing a 5 year contract with LA would be a great way to get a couple shots at a cup. Those shots would likely be in years 4 and 5 of the contract, but still they're gonna be that great soon.


i don't know - the kinds seem to be a team always 2-3 years away...every year. they are one of those organizations that have "potential" and don't seem to really ever do anything with it. they are, in my opinion, the anti-red wings (actually the anti-red wings would have to be a team like atlanta or columbus...but you get the point).


I've been hearing that about Columbus, Atlanta and Florida for years now. They all had a ton of high draft picks and did nothing good with them. I'm so not sold on the talent in LA.

All LA needs to do is get Melrose back behind the bench. That was clearly the ONLY reason they made the cup finals in 93. Well, im sure thats what the owners of Tampa thought right? :wink:
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Re: Salary Cap Implications...

Postby laholm64 on Thu Oct 23, 2008 3:42 pm

pensfan20 wrote:All LA needs to do is get Melrose back behind the bench. That was clearly the ONLY reason they made the cup finals in 93. Well, im sure thats what the owners of Tampa thought right? :wink:


I just had a 1993 flashback and it wasn't pretty. The best Penguins team EVER gets dumped by a not so good Islanders team and every single other good team in the league follows suit, and you end up with the Kings vs. the Canadiens. If we could have just won that last game... Coulda, Shoulda, Woulda
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Re: Salary Cap Implications...

Postby dagny on Thu Oct 23, 2008 3:42 pm

I don't know about the other teams mentioned, but the difference in LA now is, upon the acqusition of Kopitar, LA finally committed to rebuilding through their youth.

We all know about that, it takes time.
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Re: Salary Cap Implications...

Postby meecrofilm on Thu Oct 23, 2008 4:25 pm

Kraftster wrote:
DelPen wrote:
TheHammer24 wrote:For teams that are willing to spend the cap, the more it increases the better. I can't see how a cap stagnation helps the Pens,


The one way it helps is we have are core locked up for what is below current market price while other teams have overpaid for lesser talent like TB and malone, Philly with Richards and carter and I'm sure there's others out there. A stagnation will also lower the cost for servicable players to round out the roster which is what we need.


You really think the Richards deal, looking at it in its entirety is overpayment?


Maybe he ment Briere? 'Cause I agree with you.
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Re: Salary Cap Implications...

Postby sdm5055 on Thu Oct 23, 2008 5:50 pm

pensfan20 wrote:All LA needs to do is get Melrose back behind the bench. That was clearly the ONLY reason they made the cup finals in 93. Well, im sure thats what the owners of Tampa thought right? :wink:


well he might become available soon! :D
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