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Salary Cap could be going down next year.


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LWl4UHZT_bigger.jpgJimmy Murphy@MurphysLaw74

Told by an NHL & NHLPA source that 2016-17 cap could go down as much as $4 million. If true, interested in what that does to trade deadline

 
12:56 PM - 12 Feb 2016
Different report from what Bettman said, but with the CAD at .70 cents and projected to go down further and 1/3 to 2/5 of NHL revenue coming from Canada it won't be surprising if the cap goes down. None of the Canadian teams making the playoffs will be another factor. 
NHLPA could use the 5% escalator again to artificially increase the cap or at least so it doesn't go down. Then they can give the money back via escrow like they're doing this year. If th players vote down the escalator that would be just under 4 mill. 
At the BOG meeting in December it was reported the cap could go up approx 3 million but they also said it was speculative and the Canadian dollar would have an impact. That increase was also predicted with the assumption that the NHLPA would kick in the 5% escalator as they do every year.
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Cap projections are purely speculative at this point, as a number of factors, including the value of the Canadian dollar, will go into to determining where it lands ahead of next season.

 
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could be a great break for the canucks.  imagine getting some good players on the cheap, in the same manner the isles were able to add two d men for below market value merely because they had room (and the way we got ehroff, come to think of it).  pick up 4 or 5 good players at a discount rate, draft high AND well, bring up the prospects we have to play with our young guys on the team, and BAM, the rebuild is on and the team is better in one season!  of course, we'd have to dump as many contracts as possible - ham/vrb/pru/mil/bur/han/sbi/hig/

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Introducing the next wave in off-season re-tooling,  the "Vulture" strategy,  heading into the off-season purposely light on contracts and overall salary in order to 'circle' the so called 'have' teams and pick off their assets for virtually nothing like the Isles did not long ago with Boychuck/Leddy.

 

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2 hours ago, selkirkcraig said:

could be a great break for the canucks.  imagine getting some good players on the cheap, in the same manner the isles were able to add two d men for below market value merely because they had room (and the way we got ehroff, come to think of it).  pick up 4 or 5 good players at a discount rate, draft high AND well, bring up the prospects we have to play with our young guys on the team, and BAM, the rebuild is on and the team is better in one season!  of course, we'd have to dump as many contracts as possible - ham/vrb/pru/mil/bur/han/sbi/hig/

Screw the rebuild, according to Benning, we are making the playoffs! Expect a mid 1st round pick, only 1 pick, mind you. So that Horvat and McCann can experience getting their asses handed to in the first round of the playoffs. 

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8 minutes ago, Ghostsof1915 said:

To quote the old Karate Champ arcade game. Warhippy full point. 

I have my moments.

 

Back to the story at hand.

 

I question the full $4 million at this point.  it is peedicated on revenues and the canadian dollar.  as of now we still have a chance of seeing 4 canadian teams in the playoffs.  As of now the Sens Habs Nucks Jets and even Flames have a shot at the playoffs, slim but a chance.  If they all make it that number should dwindle.

 

Then the canadian dollar, at any point that could rise, 80 cents on the exchange brings that number down to $2 million or less.  They need to lock this in soon no question but I won't plan for a worst case scenario yet.

 

Much like this bottle of vino and this set of diamond earrings give me hope for tonight on Valentine's Day, the varaibles give me hope for the salary cap

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I doubt they allow the cap to go down, but I can easily imagine it staying exactly the same.

Good luck trying to trade any of our vets in that circumstance... no one will want to be taking on cap space.

Also, I doubt it impacts what the top UFAs get paid.  Stamkos is going to get the same money regardless, but the mid range guys are going to be signing some really low dollar deals.

Players have to be getting ticked at giving mack so much money via escrow just to benefit the few players who are signing deals this summer.

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@Warhippy Over the past couple of years the players were very reluctant to kick in the 5% escalator, Right now they're paying 13% into escrow and not happy about that. If they vote down the escalator that's almost 4 mill right there. 

Also most economists are predicting further fall for the CAD. We're a resourced based economy and with China's economy slowing down and demand for our resources going down the dollar has no hope of going up any time soon. 

Let's see what happens, we really won't know until they make the announcement i guess.

But if it does go down I'm glad we're well positioned cap wise going into the summer. 

Also if the players vote down the escalator I think NHL could chose to kick it in as well, we might see something completely weird with the NHL kicking in the escalator to artificially increase the cap so a bunch of teams don't have to dump players.  

It will just mean higher percentage of players' paychecks will go into escrow. Remember it doesn't really matter what the cap number is, players only get 50% of revenue no matter what. Players won't be happy but they could see close to 20% of their salary disappear. 

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