Flyers to get more salary cap relief
On Monday, even before negotiations with free agent goaltender Ilya Bryzgalov set to resume after a weekend hiatus, the Flyers learned they may have a little more money to throw around this summer.
Flyers to get more salary cap relief
On Monday, even before negotiations with free agent goaltender Ilya Bryzgalov set to resume after a weekend hiatus, the Flyers learned they may have a little more money to throw around this summer.
The NHL’s 2011-12 salary cap will be going up by more than anticipated.
Original reports had the cap settling at $63.5 million, up from last year’s $59.4 million, but teams were reportedly notified on Monday that the cap will be increasing to $64 million for next season.
The number has not yet offically been nailed down yet, according to reports, or released publicly by the league.
Still, even $500K extra for the Flyers - who will be teetering at the cap’s upper limit - would be more than half of a contract for a role player.
TSN in Canada first reported the cap increase. It comes at a crucial time, as each team will be crunching their budgets hard this week - either to re-sign a free agent or to see what they can afford - before this Friday’s draft at the Xcel Energy Center in St. Paul, Minn.
The salary cap floor, or minimum each team must spend, has also been increased to $48 million.
Since the league instituted the salary cap after the 2004-05 lockout, the 2011-12 salary cap floor of $48 million is now a full $9 million above the league’s original upper limit of $39 million.
Here is the league's cap evolution:
2005-06: $39 million (upper) --> $23 million (lower)
2006-07: $44 million --> $28 million
2007-08: $50.3 million --> $34.3 million
2008-09: $56.7 million --> $40.7 million
2009-10: $56.8 million --> $40.8 million
2010-11: $59.4 million --> $43.4 million
2011-12: $64 million --> $48 million
This year, the NHLPA was reportedly able to use a one-time five percent escalator as part of the collective bargaining agreement that is set to expire after next season.
For comparisons sake, the Flyers spent roughly $73 million on player salaries in the 2003-04 season, according to Forbes Magazine, before the salary cap existed. They also spent $62 million in 2002-03.
It may sound crazy, but the biggest number reported on Monday may be the salary cap floor number. Why? Small market, low budget teams like Florida, who have just $18 million committed in salary for next season, will need to spend at least $30 million just to be cap compliant. They may be willing to take on a little more salary than normal off a team like the Flyers looking to dump.
Exactly 11 of the league's 30 teams have $40 million or less committed for next season - which means nearly half the league has some serious spending to do.
Overall, it's been the fans, sponsors and television networks who have been doing the spending. For the first time in its history, after setting new television ratings records with last week’s Stanley Cup Final Game 7 in Vancouver, the NHL is set to exceed $3 billion in revenue this season. Among the major four sports, they are still roughly $1 billion behind the NBA and nearly $6 billion back of the NFL.
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So basically, the NHL's cap system doesn't work. Teams that couldn't afford to spend $35mm 5 years ago now have to spend $48mm. Should have gone with a highly punitive luxury tax system-say a 200% tax on every dollar above the threshold....meaning if a team is $1mm over the tax threshold, they get taxed $2mm.— JSaq- Contracts like Scott Hartnell and Kimmo Timonen's become incredible assets at this point because of the increased cap floor. Cap hits of 4.2 and 6.3 respectively versus actual salary 3.7 and 5. The last 2 years Daniel Briere's deal will be a ridiculous value for a cap floor team (6.5 million cap number/ 5 million total for 2 seasons)... the new NHL.— mike
- yeah...great idea...tax them 200%....whatever... The NHL's cap system does work. If those small market teams would spend the money they're being given (by the TV contract...GUARANTEED money), then the lower limit wouldn't be needed. It's there so they don't simply pocket the money as profit for the owner(s).— uncle meat
- Like the Pittsburgh pirates. They get money from every team in the league and the MLB and when a player gets good they trade them away. Its called a fall safe so teams don't do this.
— azguz - If I'm Scott Hartnell, Carter, Versteeg or Carle I'm a little worried this week knowing that I could be shipped off to low life teams like Florida, Columbus, NY Islanders, Winnipeg etc.— Fabulous
Yeah, it's going to turn into a similar absurdity of the "expiring contracts" in the NBA. I think it's hilarious. All the small market teams that stole a season from us now have to suffer under the rules they created, while the big market teams are back to pre-lockout levels. If the Panthers or Islanders can't afford to pay the floor, they need to move to new cities.— Pelti- Hartnell has a no trade clause. But I could see DET asking about him to replace Bertuzzi. One slow, imoble knucklehead for an old, slow immobile dodo.— MichaelZoe
- Yikes! Ya gotta think the owners in the cheaper cities must be cringing at being made to spend $20-30 million more in salaries this year......and yes, it certainly makes for an interesting salary dump year for a lot of teams.....the question is, will those lower rung owners want out of the existing agreement and what penalties do they face if they don't spend the money this year? There are no cities left to expand to, as one poster on here advocated doing....some say we should actually fold a few franchises and I agree with that thinking. In any event, Homer seems to have done the organization good with the way he has structured these long term contracts and their cap hits. Hopefully it will allow the manuevering we need to do to get who we want. Of anyone, I'd like to see Versteeg go first, this team just went into the tank after they acquired him for the stretch run and the playoffs. He was the only one brought in, it's gotta be his fault, right?????— Mark1npt
- Pelti - They need to move to new cities - or fold. I think the better than average and above players are spread way to thin right now. I would love to see the league condense by a few teams so the talent could be a bit more concentrated.— CTL
- awesome, now the flyers can sign another player who won't take them anywhere and we'll be saddled with a bigger contract. sweet.— DennyP
- I think this is good for the Flyers in 2 ways. it gives them more money obviously to help with signing Bryz and it may save Leino. Also since Florida has to take on a ton of salary, Flyers can dump salary on them hopefully.Tallon might take a "flyer" on Versteeg— debbyt
Comment removed.- With all the idiotic talk of trading Carter, get rid of aging contracts if someone will have them. Pronger can go for one. He has one year left in him so get what you can of value now, thats 5 million and than get rid of a guy who should never have been brought here, Versteeg, and there's another 3 million. 8 million saved. You have 2 guy's on D that can step in and play. Bartulis and Gustaffson. The only thing Pronger has on either is a shot, the other 2 have MUCH better wheels and probably would hit somebody.— twpman
- twpman:
Two questions: 1)What are you smoking and 2) where can I buy some! If you could stuff Bartulis & Gustaffson into one pair of skates they still would not equal Pronger. I agree that Versteeg can take a hike. Carter & his 35 or 36 for-the-most- part meaningless goals can also go. I'm sure another team would be interested in a guy who can't put that "heralded" wrist shot actually on the net from 30-35 feet out, won't back-check and won't pass the puck.— Dennyb21 - From Columbus Dispatch.....'As for a center, GM Ken Howson hopes to acquire Jeff Carter, but a plan b has not been openly discussed just yet'
— Romus
