Cap to increase by $5 million next season?

Forum for Pittsburgh Penguins-related messages.

Moderators: Three Stars, dagny, pfim, netwolf

Cap to increase by $5 million next season?

Postby cs6687 on Fri Sep 26, 2008 12:06 pm

From a Ken Campbell article in the Hockey news:

In what should come as a surprise to no one, for the first time in history the NHL will spend in excess of $1.5 billion in salaries this season. And early indications are the average team payroll will go up by $5 million from 2007-08.

According to nhlnumbers.com, the 30 NHL teams combined will spend $1.535 billion this season, compared to $1.383 billion last season. That shouldn’t come as a shock, considering the salary cap went from $50.3 million per team last season to $56.7 million this season. Teams are projected to spend an average of $51.17 million on player salaries this season. Based on a 23-man roster, the average NHL salary will be about $2.2 million, which would be $400,000 more than it was before the lockout the owners forced upon hockey fans to put an end to runaway salaries.
cs6687
AHL All-Star
AHL All-Star
 
Posts: 6,188
Joined: Tue Feb 21, 2006 6:02 pm

Re: Cap to increase by $5 million next season?

Postby blackjack68 on Fri Sep 26, 2008 12:12 pm

Maybe I'm reading it differently, but I see it as the cap already went up (to 56 mil) but teams are averaging only $51 mil, hence the difference of $5 mil. But maybe I'm just reading it wrong.
blackjack68
NHL Healthy Scratch
NHL Healthy Scratch
 
Posts: 10,266
Joined: Fri Apr 18, 2008 10:12 am
Location: formerly Pittsburgh, now NJ

Re: Cap to increase by $5 million next season?

Postby bhaw on Fri Sep 26, 2008 12:14 pm

blackjack... I read it the same. Average payroll is up.
bhaw
NHL Third Liner
NHL Third Liner
 
Posts: 27,003
Joined: Mon Jan 22, 2007 5:00 pm
Location: From Hockey Siberia to Hockey Hell

Re: Cap to increase by $5 million next season?

Postby Henry Hank on Fri Sep 26, 2008 12:18 pm

Yeah... next year's salary cap is based on this year's revenues. They can estimate what it might be, but that's not something they're going to calculate until after the season.

It's hard to believe the Pens are in this position, but a $5 million increase is a good thing for them because it gives them more room to work with. With Staal the last piece to lock up, they're finally going to be facing tough cap situations.
Henry Hank
NHL Healthy Scratch
NHL Healthy Scratch
 
Posts: 12,480
Joined: Sun Feb 05, 2006 2:31 pm

Re: Cap to increase by $5 million next season?

Postby mikey287 on Fri Sep 26, 2008 12:27 pm

I don't think so...I'm no economist, but I couldn't see the Upper Limit rising by more than $2 or $3 million, between the American dollar not being so hot, the Canadian dollar will level off (if it hasn't already?) and that alone would chip away significantly at any figure that would be begin to touch $60 million...

The dramatic spikes in the Upper Limit and Midpoint are by device...the initial Upper Limit was underestimated to allow for growth as opposed to having to backtrack and further confuse things...those underestimations are the foundation of the (almost pseudo-) exponential growth of the NHL's salary structure, I think this last spike was the realization of that and it will begin to plateau until the NHL, in and of itself, shows dramatic growth...
mikey287
NHL Fourth Liner
NHL Fourth Liner
 
Posts: 17,881
Joined: Sun Jan 29, 2006 6:40 pm
Location: Philadelphia, PA - @MichaelFarkasHF

Re: Cap to increase by $5 million next season?

Postby CKA24 on Fri Sep 26, 2008 12:46 pm

mikey287 wrote:I don't think so...I'm no economist, but I couldn't see the Upper Limit rising by more than $2 or $3 million, between the American dollar not being so hot, the Canadian dollar will level off (if it hasn't already?) and that alone would chip away significantly at any figure that would be begin to touch $60 million...

The dramatic spikes in the Upper Limit and Midpoint are by device...the initial Upper Limit was underestimated to allow for growth as opposed to having to backtrack and further confuse things...those underestimations are the foundation of the (almost pseudo-) exponential growth of the NHL's salary structure, I think this last spike was the realization of that and it will begin to plateau until the NHL, in and of itself, shows dramatic growth...


Mikey -- The Canadian dollar has already come back down. I was listening to XM 204 last week and Winnipeg came up in discussion. In the end, the broadcasters said that the pipe-dream of bringing a team back to Winnipeg was over because the Canadian dollar has dropped to below the American dollar again.

I'm pretty sure that this should be a good thing for us. We're no longer the team on the cusp of disappearing, we're going to have the revenue stream to keep up with the top teams in the league, we have a GM who has his head on straight and took us to the finals in his third season, and owners who have shown that they are (now) prepared to spend the money to keep this team dominant for years.
CKA24
AHL'er
AHL'er
 
Posts: 2,703
Joined: Tue Jul 25, 2006 1:23 am
Location: Harrison City, Pa

Re: Cap to increase by $5 million next season?

Postby holeinone on Fri Sep 26, 2008 3:06 pm

But my friends, just remember that when the cap goes up so do your precious tickets. You will get the same hockey, season after season, but the cost of that will be going through the ceiling. I had my run as a season ticket holder for 25 years and I am done. The hockey is not any better but the cost is ridiculous. Hold on to your hats because the big wind is just starting to blow. The hurricane is just starting to swirl. Good luck because you will need it.
holeinone
ECHL'er
ECHL'er
 
Posts: 1,155
Joined: Sat Mar 24, 2007 11:30 pm

Re: Cap to increase by $5 million next season?

Postby Guinness on Fri Sep 26, 2008 3:58 pm

holeinone wrote:But my friends, just remember that when the cap goes up so do your precious tickets. You will get the same hockey, season after season, but the cost of that will be going through the ceiling. I had my run as a season ticket holder for 25 years and I am done. The hockey is not any better but the cost is ridiculous. Hold on to your hats because the big wind is just starting to blow. The hurricane is just starting to swirl. Good luck because you will need it.


Surely you don't mean that the hockey isn't better in Pittsburgh, particularly in relation to the hockey we'd endured from '02 to '06?
Guinness
NHL Healthy Scratch
NHL Healthy Scratch
 
Posts: 11,330
Joined: Tue Jul 25, 2006 7:30 am
Location: At the pub

Re: Cap to increase by $5 million next season?

Postby holeinone on Fri Sep 26, 2008 4:55 pm

The hockey today is not as good as it was when Wayne and Mario had the spotlight. Guys today are clones of one another. The era that Mario and Gretz dominated won't be matched by the stars of today. They won't even come close. You can pay them 50 million a year and you still won't get that performance. Too much emphasis on money and not performance but you will pay dearly to watch it. Not me but you. I spent my 25 years as a season ticket holder but not any more.
holeinone
ECHL'er
ECHL'er
 
Posts: 1,155
Joined: Sat Mar 24, 2007 11:30 pm

Re: Cap to increase by $5 million next season?

Postby Henry Hank on Fri Sep 26, 2008 5:31 pm

The cap goes up because ticket prices go up, not the other way around. It's just simple supply and demand. Aren't Pens tickets still cheaper than they were at their peak in the mid-90's?
Henry Hank
NHL Healthy Scratch
NHL Healthy Scratch
 
Posts: 12,480
Joined: Sun Feb 05, 2006 2:31 pm

Re: Cap to increase by $5 million next season?

Postby holeinone on Fri Sep 26, 2008 8:37 pm

Ticket prices are not anywhere near what they are now. My tickets were in the first row of the old c-23 right across the visitors bench right at the blue line and the price was under $50 each and those were the Stanley cup years. Enjoyed it much more than now. You don't get the bang for your buck now. Prices are higher for the same product and the players arguably aren't as good as they were then. Supply and demand, I call it greed and stupidity. Just because a player makes 10 mill a year he is now giving you 10 times the effort or production that a million dollar a year player gave back then. It is still out of control Nobody is worth $10 mill a year in any sport period.
holeinone
ECHL'er
ECHL'er
 
Posts: 1,155
Joined: Sat Mar 24, 2007 11:30 pm

Re: Cap to increase by $5 million next season?

Postby Idoit40fans on Fri Sep 26, 2008 8:38 pm

holeinone wrote:Ticket prices are not anywhere near what they are now. My tickets were in the first row of the old c-23 right across the visitors bench right at the blue line and the price was under $50 each and those were the Stanley cup years. Enjoyed it much more than now. You don't get the bang for your buck now. Prices are higher for the same product and the players arguably aren't as good as they were then. Supply and demand, I call it greed and stupidity. Just because a player makes 10 mill a year he is now giving you 10 times the effort or production that a million dollar a year player gave back then. It is still out of control Nobody is worth $10 mill a year in any sport period.


Yeah, well they didn't sell out every game then. From now on when this is discussed jsut post a blank message, because everyone knows exactly what you are saying. Save yourself time.
Idoit40fans
NHL Third Liner
NHL Third Liner
 
Posts: 53,241
Joined: Sat Dec 09, 2006 2:42 pm
Location: No Reading, No Research, Just Strong Opinions


Return to Pittsburgh Penguins

Who is online

Users browsing this forum: Beech_is_God, BurghThing, Candleonwater, DudeMan2766, Guido, Hugo Stiglitz, Humperdink, JS©, LEorangeTANG58, mikey287, NashvilleCat, Old Used Pylon, pens_CT, PghSkins, pressure=9Pa, Realist, sdadowski, sj?, Skatingpen, Stillerz Bar, zman102666 and 82 guests


e-mail