Tightening belts. The salary cap is bad news for spenders…

first_imgA new collective agreement has been agreed. Among other things, it will freeze the salary cap at 81.5 million for next season, and nowhere is it written that it will soon rise. Rather the opposite. Until the league reaches revenues of 4.8 billion, which was predicted for this year, it will be saved. That is the reality. Whether someone likes it or not. Payout money does not fall from the sky. They need to be earned. And the NHL earned much less than expected this year. It will most likely be the same next season, because it is very bold to expect the year to break out with full galleries.The new situation will affect different clubs and individuals differently. Deductions to the escrow stock account will pop up next year, which will affect everyone. Otherwise, players will get theirs. The main problem will be fighters without a contract. While previously elite hockey players in the state of unprotected free agents looked forward to July 1 and very often turned their noses at the offer of the original club to wait for the better, this year a lot of things can be different.And it’s not just about the date. The originally announced date of opening the mercenary exchange was November 1, now it seems that the market will start in mid-October. One week after the Stanley Cup, most likely on October 9-11. According to Chris Johnson of Hockey Night in Canada, this means that the draft and the free market may start in parallel.Free agency for the 2020-21 NHL season will either be Oct. 9 or seven days following the Stanley Cup Final (as late as Oct. 11).That means we could have free agency open the same day as the first round of the entry draft is held. — Chris Johnston (@reporterchris) July 10, 2020What will they choose from?As every year, a lot of players were shaking at fat contracts. The largest fish in the transfer pond will be Taylor Hall of Arizona (pictured). Then there is Alex Pietrangelo from St. Louis, Braden Holtby of Washington, Torey Krug of Boston, Tyson Barrie of Toronto, Jacob Markström and Tyler Toffoli of Vancouver, Mike Hoffman and Yevgeny Dadonov of Florida, Robin Lehner of Las Vegas and many others.These guys certainly don’t get the job done, though probably not for the money they got last year. But somewhere at the end of the series there will be names that may be completely out of work. Hiring a salaried young man from a junior will be cheaper.In many cases it will be a necessity. Toronto overflows the salary cap most significantly, with the contract ending in a few players only in defense. They will have problems elsewhere. More than half of NHL clubs spend at the pay ceiling. They are the most environmentally friendly this year with 72.7 million in New Jersey, some space has Ottawa, Los Angeles, Colorado, Columbus, plus a few others. Otherwise it will be a fight.And beware, the salary cap may even fall! Should league sales (HRR) fall below $ 3.3 billion, it would cease to be 81.5 million guaranteed. This is probably not realistic, although with long-term closed stadiums it can happen. If the HRR is kept between 3.3 – 4.8 billion, the ceiling of 81.5 million applies. Lower limit of 60.2 million. If the league turnover exceeds 4.8 billion, the ceiling will increase.Top hockey is fun. Nothing more, nothing less. Entertainment is one of the goods with high elasticity of demand, economists say. You don’t necessarily need them, you can easily give them up. Back in the 1960s, NHL players routinely sought out civilian jobs over the summer to earn extra money. For example, Gordie Howe played baseball after the end of the hockey season, his friends from the team worked in a car workshop. Today, NHL stars are lifelong millionaires, but even this state has its boundaries.The NHL is expecting a poor summer, actually autumn. And quite possibly a few more years. Share on Facebook Share on Google+ Share on Twitterlast_img

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