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How Bad is the Cap - really?

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John_Guest

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1 hour ago, John_Guest said:

Yeah, I was thinking maybe somebody might need defensive help in the playoffs and have the money to take a risk. So future considerations for OEL and Trade for not much with Myers.

 

Maybe we could make an Arizona style trade with somebody else for OEL, only not give away as much as they did.

nmc

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2 hours ago, John_Guest said:

Isn't Halak also gone at the end of this year? Do these bonuses somehow affect the cap next year? 

 

And yeah the Ferland thing is something I don't understand. I don't think anybody is expecting Ferland to come back between now and 2023 when his contract ends. So why does he count against the cap? Is there not even some sort of cut?

Players on LTIR count against the cap but the team can exceed the cap to fit them in.  Their regular roster will still be under 81.5M but the contract of the player on LTIR can go beyond the cap.  

 

When a team has a player that has to go on LTIR they have to try and maximise their LTIR relief.  It sets a new notional salary cap for the regular roster.  Teams have to try and get as close as possible to 81.5M (without exceeding it) so that they don't lose any cap space for having to use LTIR.  

 

Vancouver weren't able to maximise their LTIR relief this season and are operating at a new notional cap hit of 81.2M for their regular roster - ie they lost 300K in cap space right off the bat compared to a team that is not in LTIR. 

 

When a team is under 81.5M they can bank the daily difference for future use.  That's not possible in LTIR because they are exceeding 81.5M by using LTIR.  Bonuses come out of banked cap space at the end of the season - if it's insufficient the difference gets carried over to the next season.  As there's no banked cap space in LTIR the bonuses are entirely carried over into next season.

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2 hours ago, appleboy said:

Or just clear enough cap space to absorb his bonus. That bonus is 1.5 mil.

Yes the buyout hits are all gone for the next year. 2.4 mil for next then gone.

They would need to clear about 14M in cap space at the TDL to be able to absorb his 1.5M bonus this season.

 

Can't bank cap space in LTIR.  They are 9.1M in LTIR but have 3.6M in cap space so they could move Hamonic to IR.  Would still leave 5.5M in cap space to clear to get out of LTIR.  Then they have to bank cap space.  With 20% of the season left they need 7.5M at the TDL to bank 1.5M by season's end.  

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2 minutes ago, mll said:

They would need to clear about 14M in cap space at the TDL to be able to absorb his 1.5M bonus this season.

 

Can't bank cap space in LTIR.  They are 9.1M in LTIR but have 3.6M in cap space so they could move Hamonic to IR.  Would still leave 5.5M in cap space to clear to get out of LTIR.  Then they have to bank cap space.  With 20% of the season left they need 7.5M at the TDL to bank 1.5M by season's end.  

I forgot about the LTIR.  So the bonus rolls and compounds the mess that Jim left behind. They might as well move out some players. Next year is a wash . You can't keep pushing the troubles down the road.

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19 minutes ago, mll said:

They would need to clear about 14M in cap space at the TDL to be able to absorb his 1.5M bonus this season.

 

Can't bank cap space in LTIR.  They are 9.1M in LTIR but have 3.6M in cap space so they could move Hamonic to IR.  Would still leave 5.5M in cap space to clear to get out of LTIR.  Then they have to bank cap space.  With 20% of the season left they need 7.5M at the TDL to bank 1.5M by season's end.  

Man we better trade Ferland to Tampa for like a sixth to help them circumvent the cap again.

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On 2/1/2022 at 12:15 PM, appleboy said:

If they can move out Pearson , Hamonic  and Dickinson. That would help a lot. 

 

None will be easy to move.

Yep. that’s true. Pearson might have the most value out of the three. He’s still a pretty good player on a contending team. Would add depth for sure. Hamonic is a gong show. What the heck is going on with him as a player. And Dickinson has been a massive disappointment this season. Not sure if he’ll rebound next season. 

 

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22 hours ago, appleboy said:

I forgot about the LTIR.  So the bonus rolls and compounds the mess that Jim left behind. They might as well move out some players. Next year is a wash . You can't keep pushing the troubles down the road.

Next year is a wash already? We haven’t even finished this season yet lol

 

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On 2/1/2022 at 11:25 AM, John_Guest said:

Yeah, I was thinking maybe somebody might need defensive help in the playoffs and have the money to take a risk. So future considerations for OEL and Trade for not much with Myers.

 

Maybe we could make an Arizona style trade with somebody else for OEL, only not give away as much as they did.

I’m pretty certain we’re stuck with OEL, until we can possibly buy him out. Or just wait until his contract runs out. The Jim Benning special. 

 

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1 hour ago, N4ZZY said:

I’m pretty certain we’re stuck with OEL, until we can possibly buy him out. Or just wait until his contract runs out. The Jim Benning special. 

 

OEL, not a bad D'man but a bl00dy expensine one for what he provides. on the other hand Schenn not bad but good value IMO

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2 hours ago, N4ZZY said:

Next year is a wash already? We haven’t even finished this season yet lol

 

Unfortunately, Uncle Jim B left this team in a horrible financial mess because of his terrible trades, signings and cap-mismangement.  In his desperation to save his job he used nearly every tool he could - including sacraficing flexibility in the future.   Aqua-Lini was asleep at the wheel allowing JB to hog-tie this team so badly into the future and should have never re-signed him last year.    Lesson learned I hope!   

Anyways, looking forward, it will take another 2-3 years for JR to sort & clean out some of the mess that JB left this team in.   We should all be thankful that there is finally some light showing down the road because I don't think anyone of us could stomach another 10 years like the last decade!  So lets look forward to positive changes coming.

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1 hour ago, RU SERIOUS said:

Unfortunately, Uncle Jim B left this team in a horrible financial mess because of his terrible trades, signings and cap-mismangement.  In his desperation to save his job he used nearly every tool he could - including sacraficing flexibility in the future.   Aqua-Lini was asleep at the wheel allowing JB to hog-tie this team so badly into the future and should have never re-signed him last year.    Lesson learned I hope!   

Anyways, looking forward, it will take another 2-3 years for JR to sort & clean out some of the mess that JB left this team in.   We should all be thankful that there is finally some light showing down the road because I don't think anyone of us could stomach another 10 years like the last decade!  So lets look forward to positive changes coming.

Indeed. Benning is one of the worst GM's the Canucks have had in recent memory. It's crazy to me just how bad he was at managing the team. Unbelievable. And I had to live through all of it. Jeez. 

 

I am hopeful, always, as a fan. It just can be very frustrating after 8 years that this team is no where near where it should be at its competitive window. But with Jim Rutherford and his staff, hopefully that begins to change. I look forward to the other areas of the executive team where he will continue to add to management, so as to make it as smart and as strong as possible, so as to ice the best possible team to become a perpetual contender. 

 

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On 2/1/2022 at 2:37 PM, Xanlet said:

The cap is fundamentally unfair because of different tax rates. Canada has quite high income tax, B.C. for example has 20.5% on all income over 227k per year, plus whatever other federal taxes apply. In places like Florida, there is 0% state tax.

 

This results in players receiving much higher take-home pay for lower local tax teams than for higher tax teams. For a player like Pettersson, he likely would have the exact same take-home pay he gets playing for Van at a $7.35m by accepting a $6m cap in Florida and paying way less tax on it.

 

To approach it another way, a larger portion of Van's salary cap goes directly to taxes than a team like Florida (or a lot of other states), meaning Van has less real money to pay players. Remember, players don't care what the number of their official salary is, they care how much money they have after taxes, and agents and teams know this and actively use it to entice players to those teams.

 

A rough, back of the envelope calculation means we are in the neighborhood of an automatic $10m cap disadvantage because of this structuring. I contend that it is basically impossible to overcome such a harsh handicap when the salary cap is flat across all teams.

Yep.   Gavin group has a calculator (google it anyone who wants too)...5 US teams have no state tax - those teams enjoy a differed of 53% -36.4% ... that's a lot of extra money.   A couple Toffoli's / Garlands or one marquee guy ... food for thought.   Those GMs aren't "amazing" so much as they just get a big advantage.  

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On 2/1/2022 at 11:06 AM, NUCKER67 said:

IMO, build around:

 

Horvat

Pettersson

Hoglander

Podkolzin

Hughes

Demko

 

They could get a lot back (to help this young group make a run in a year or two), by trading Miller, Garland and Boeser, Pettersson

 

Edited by sxqhfeh
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On 2/1/2022 at 12:37 PM, Xanlet said:

The cap is fundamentally unfair because of different tax rates. Canada has quite high income tax, B.C. for example has 20.5% on all income over 227k per year, plus whatever other federal taxes apply. In places like Florida, there is 0% state tax.

 

This results in players receiving much higher take-home pay for lower local tax teams than for higher tax teams. For a player like Pettersson, he likely would have the exact same take-home pay he gets playing for Van at a $7.35m by accepting a $6m cap in Florida and paying way less tax on it.

 

To approach it another way, a larger portion of Van's salary cap goes directly to taxes than a team like Florida (or a lot of other states), meaning Van has less real money to pay players. Remember, players don't care what the number of their official salary is, they care how much money they have after taxes, and agents and teams know this and actively use it to entice players to those teams.

 

A rough, back of the envelope calculation means we are in the neighborhood of an automatic $10m cap disadvantage because of this structuring. I contend that it is basically impossible to overcome such a harsh handicap when the salary cap is flat across all teams.

Honestly what they need to do is have a pro-rated tax plan for salary cap fairness. 

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