Salary cap to be based on percentage of revenue of each team
TORONTO -- The NHL and the NHL Players' Association have agreed on a salary-cap system, eliminating the biggest stumbling block to the resumption of play next season, the Toronto Globe and Mail reported on its Web site Wednesday.
The paper reported that a source close to the owners, and another close to both owners and players, said there would be a team-by-team salary cap, based on a percentage of the revenue of each franchise.
In what is believed to be a six-year agreement, based on revenue projections by both sides, the salary cap will range from $34 million to $36 million, with the floor from $22 million to $24 million.
The league has previously demanded that the cap be 54 percent of a team's revenue.
However, this does not mean that an overall deal on the lockout is imminent. Negotiators for the players and owners are now working on other issues such as salary arbitration and free agency, according to GlobeandMail.com.
"They still have a ways to go," one source told the paper, although with the cap issue settled there is reason to hope a deal can be reached by early July.
NHL vice-president Bill Daly, the league's chief negotiator, declined to confirm or deny reports of a salary-cap deal.
But he did say publicly on Tuesday that negotiators had moved on to other issues, including salary arbitration, free agency, qualifying contract offers and others.
The lockout caused the cancellation of the 2004-05 season.
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Last edited by Ensign9 on Wed Jun 08, 2005 11:20 pm, edited 1 time in total.
Joined: Wed Mar 02, 2005 3:43 am Posts: 18418 Location: Anytown, USA Gender: Male
MitchCumstein wrote:
That is great news. The big issue has been taken care of. Let's get the rest of this thing done now.
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stip wrote:
In five years, when you get laid and grow up, you should go back and read some of these posts and if you've turned into a decent person you'll realize how much of an asshole you sound like right now
Joined: Sun Oct 17, 2004 4:51 am Posts: 6944 Location: Long Island Gender: Male
false alarm homeboys, the circle jerk continues....
NHLPA denies report of salary cap deal
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FOXSports.com
Posted: 9 minutes ago
The NHL Players Association denied a report that the NHLPA and the league have agreed on a salary cap system, effectively eliminating the biggest stumbling block to ending the lockout and starting next season on time, according to USA Today.
"The NHLPA and NHL discussions this week continue to cover a range of issues such as controls on team salaries, revenue sharing, Olympic participation, the amateur player draft and player retention rights," NHLPA spokesman Jonathan Weatherdon reportedly told the newspaper.
"While the parties continue to have discussions to reach a common ground, no agreements have been reached."
According to a report in the Toronto Globe and Mail, however, the two sides in the NHL labor dispute have agreed on a formula for a salary-cap system based on team-by-team revenue.
While the salary cap issue has been the most contentious during the negotiaions, the report is quick to point out that this agreement does not necessarily mean a new CBA is imminent. The two sides will still need to negotiate terms of salary arbitration, free agency, qualifying contract offers and other issues, any of which could lead to much longer delays.
"They still have a ways to go," one source told the Globe and Mail.
NHL vice president Bill Daly, the league's chief negotiator, declined to confirm or deny anything tot he Globe and Mail, but he did say publicly on Tuesday that the negotiators had moved on to other issues.
A source with ties to both owners and players and another source close to the owners told the Globe and Mail there will be a team-by-team salary floor and cap based on a percentage of each team's revenue. The actual percentage is not known, but the league had been demanding "linkage" of 54 percent.
According to the report, in the first year of what is thought to be a six-year deal, based on revenue projections by both sides, the salary cap will range from $34 million to $36 million, with the floor from $22 million to $24 million.
It remains to be seen how the percentage of revenue will be applied to each team, since there is a large disparity in revenue among the teams in the NHL, several with severe financial difficulties.
There will also be a luxury-tax system midway beween the cap floor and cap ceiling.
Joined: Sun Oct 17, 2004 4:52 pm Posts: 6822 Location: NY Gender: Male
I'm angry that they haven't accomplished anything, but would a team-by-team salary cap really be a good idea? You'd still have a huge salary discrepancy between markets. Sure, it'd be better than nothing, but it wouldn't level the playing field all that well.
Joined: Sat Oct 16, 2004 11:26 pm Posts: 14525 Location: Buffalo
Go_State wrote:
I'm angry that they haven't accomplished anything, but would a team-by-team salary cap really be a good idea? You'd still have a huge salary discrepancy between markets. Sure, it'd be better than nothing, but it wouldn't level the playing field all that well.
You still have a hard cap/maximum of $36 mill, though. That would level the playing field, in some respects, b/c one team couldn't afford to hoard elite talent (like a Detroit, New York, Colorado, etc.).
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