X. Benedict Posted December 5, 2006 Report Share Posted December 5, 2006 This kind of surprised me because attendance is down, but ticket prices are higher league-wide so the league is still making money. I was actually expecting the cap to stay frozen next year. From the Governors meeting in Palm Beach: TSN.ca Link to comment Share on other sites More sharing options...
topshelfcookies Posted December 5, 2006 Report Share Posted December 5, 2006 Very interesting...I was on the same page as you X Benedict as per the cap. It will be interesting to see how high Tommy G will go against the cap in '07-'08 Link to comment Share on other sites More sharing options...
inkman Posted December 5, 2006 Report Share Posted December 5, 2006 Still hope for Drury and Briere! Link to comment Share on other sites More sharing options...
topshelfcookies Posted December 5, 2006 Report Share Posted December 5, 2006 Still hope for Drury and Briere! That was honestly the first thing that crossed my mind....haha Link to comment Share on other sites More sharing options...
Ramius Posted December 5, 2006 Report Share Posted December 5, 2006 This kind of surprised me because attendance is down, but ticket prices are higher league-wide so the league is still making money. I was actually expecting the cap to stay frozen next year. From the Governors meeting in Palm Beach: TSN.ca looks like its onyl going up a few mil. One of my concerns tho is that eventually the cap is going to hit a ceiling. Frankly, how much higher can the cap rise? There simply isnt the revenue stream in the NHL as there is in the NFL. I dont see how much higher and higher the cap can keep increasing, without massive ticket price increases. And that would drive fans away. Link to comment Share on other sites More sharing options...
LabattBlue Posted December 5, 2006 Report Share Posted December 5, 2006 This kind of surprised me because attendance is down, but ticket prices are higher league-wide so the league is still making money. I was actually expecting the cap to stay frozen next year. From the Governors meeting in Palm Beach: TSN.ca The NHL will end up right where they were a couple of years ago if they keep this nonsense up. What's wrong NHL...the Rangers, Flyers, Stars, Leafs & Avalanche don't like playing on a level playing field, so you keep raising the cap to a level they can spend at but most teams can't. <_< Link to comment Share on other sites More sharing options...
gregkash Posted December 5, 2006 Report Share Posted December 5, 2006 If the NHL keeps getting fans, then the cap will rise. Link to comment Share on other sites More sharing options...
Taro T Posted December 6, 2006 Report Share Posted December 6, 2006 The NHL will end up right where they were a couple of years ago if they keep this nonsense up. What's wrong NHL...the Rangers, Flyers, Stars, Leafs & Avalanche don't like playing on a level playing field, so you keep raising the cap to a level they can spend at but most teams can't. <_< The salary cap is set based on league revenues the season before and what the expected revenues are in the current season. The big boys don't get to choose what the salary cap will be. With revenue sharing, on some levels it is better for the little guys for the cap to be higher as it sets the targeted team player compensation and resulting revenue sharing amounts higher. So teams like the Sabres that are small market but still seeing a large increase in their revenues will continue to get revenue shared funds because their available funding (54-57% of total revenues) will most likely continue to be less than the targeted team player compensation. It also takes more money away from the big guys so they have a LITTLE bit less to spend on their scouting departments and farm teams than they would have had if they had to give less of their money to their smaller bretheren. The issue for the little guys is in order to get their full share of revenue sharing they have to keep their revenues increasing at least as much as the average team's revenue increase. Link to comment Share on other sites More sharing options...
matter2003 Posted December 6, 2006 Report Share Posted December 6, 2006 The NHL will end up right where they were a couple of years ago if they keep this nonsense up. What's wrong NHL...the Rangers, Flyers, Stars, Leafs & Avalanche don't like playing on a level playing field, so you keep raising the cap to a level they can spend at but most teams can't. <_< Well, I am on the fence on this one---while I understand it is harder for smaller market teams to keep up in the NHL than the NFL because of the lack of TV Revenues, and due to the fact that larger market teams can charge more for tickets, regional TV contracts, etc, I would have to think that in places like Buffalo where the city is absolutely Sabre Crazy, the team is going to be making a lot of moneyt, regardless of how they try to spin it. Buffalo has 6 of the top 10 jerseys on nhl.com shop again for the month of November. There is no way this team can lose money this year---all they have to do is order like 25 truckloads worth of merchandise and sell it at the games, and they will make a ton of money---they literally cannot keep it in stock. Sales at the Sabres store in the arena are up over 1200%!!! from last year. That being said, I don't see how the big market teams that are drawing very poorly(Boston, Chicago, Washington) can afford it anymore than some of the smaller market teams can... With the cap dependant on leaguewide revenue, it obviously will not rise above a level where teams will be able to spend like they did in the past. However, teams are much more dependant on their own revenue making abilities than the NFL is, where teams are basically handed 100 million+ every year to spend on players from the unbelievably rich TV contracts. The NHL Contract on OLN is very modest in comparison to the NFL's Link to comment Share on other sites More sharing options...
topshelfcookies Posted December 6, 2006 Report Share Posted December 6, 2006 It's a good sign in my opinion that overall league revenue is growing, but can you imagine what would happen if the organizations in the largest American markets got their act together? Boston, NYC, Chicago, Dallas, LA, Washington, Philly...of the 8 teams in those cities none of them are great, exciting teams, though most appear to have at least positioned themselves to be somewhat competitive this season. If you took the Sabres and transplanted the entire organization to Chicago, or NYC I wonder what sort of difference it would make... Link to comment Share on other sites More sharing options...
Bmwolf21 Posted December 6, 2006 Report Share Posted December 6, 2006 Well, I am on the fence on this one---while I understand it is harder for smaller market teams to keep up in the NHL than the NFL because of the lack of TV Revenues, and due to the fact that larger market teams can charge more for tickets, regional TV contracts, etc, I would have to think that in places like Buffalo where the city is absolutely Sabre Crazy, the team is going to be making a lot of moneyt, regardless of how they try to spin it. Buffalo has 6 of the top 10 jerseys on nhl.com shop again for the month of November. There is no way this team can lose money this year---all they have to do is order like 25 truckloads worth of merchandise and sell it at the games, and they will make a ton of money---they literally cannot keep it in stock. Sales at the Sabres store in the arena are up over 1200%!!! from last year. That being said, I don't see how the big market teams that are drawing very poorly(Boston, Chicago, Washington) can afford it anymore than some of the smaller market teams can... With the cap dependant on leaguewide revenue, it obviously will not rise above a level where teams will be able to spend like they did in the past. However, teams are much more dependant on their own revenue making abilities than the NFL is, where teams are basically handed 100 million+ every year to spend on players from the unbelievably rich TV contracts. The NHL Contract on OLN is very modest in comparison to the NFL's I think the argument that some are making, and frankly I agree, is that if the revenues continue to rise, at some point, the cap will get to a point where only a handful of teams will be able to spend close to it, even with the revenue sharing. There is no way the Sabres will ever see the local TV or radio revenue that the NYC, Boston, Chicago or LA-area teams can bring in, and no matter how much merchandise they sell, it won't even out. Someone can correct me on this, but IIRC, the league & Rbk get the lion's share of merchandise sale revenue, with the team getting much less. Link to comment Share on other sites More sharing options...
LabattBlue Posted December 6, 2006 Report Share Posted December 6, 2006 The salary cap is set based on league revenues the season before and what the expected revenues are in the current season. The big boys don't get to choose what the salary cap will be. With revenue sharing, on some levels it is better for the little guys for the cap to be higher as it sets the targeted team player compensation and resulting revenue sharing amounts higher. So teams like the Sabres that are small market but still seeing a large increase in their revenues will continue to get revenue shared funds because their available funding (54-57% of total revenues) will most likely continue to be less than the targeted team player compensation. It also takes more money away from the big guys so they have a LITTLE bit less to spend on their scouting departments and farm teams than they would have had if they had to give less of their money to their smaller bretheren. The issue for the little guys is in order to get their full share of revenue sharing they have to keep their revenues increasing at least as much as the average team's revenue increase. As long as the Sabres continue to be on the receiving end of revenue sharing(I don't even pretend to understand the ins and outs of the cba, so I will take your word for it), I am a happy camper. :) Link to comment Share on other sites More sharing options...
nfreeman Posted December 6, 2006 Report Share Posted December 6, 2006 Here's some interesting info on revenues and team values, broken down by team: http://www.forbes.com/lists/2006/31/biz_06...ns_Revenue.html Looks like the Sabres are on sound footing. Hallelujah. There's just one open item I'm hoping they can take care of this June... Link to comment Share on other sites More sharing options...
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