Saturday, March 19, 2005

Why A Salary Cap is Bad For The NHL

Salary caps lead to more player movement. They lead to valuable players on good teams being let go for no reason other than staying below a salary cap. This will ruin the continuity from one year ot the next. This will make it more likely that your favorite player on your favorite team has to leave town and play for the opposition

If your team drafts well and produces a lot of talent in today's NHL, your team will win. In a salary cap league, this is no longer true. It doesn't matter if you draft well to produce a lot of talent, when the players you drafted become good, you will have to give them up to the teams that didn't draft well - because you cannot pay them all and stay below the cap. Drafting no longer is important to producing a winner. The important thing is having good accountants who know how to stay below the salary cap.

Can the NHL afford to not have a salary cap? Of course they can. Teams just have to stop signing contracts that pay out to players more then they can afford (assuming they did that in the past). Each team makes its own budget and each team sticks to it. Its that simple. Couple that with the 24% salary rollback the NHLPA offered - or merely with a long lockout where the vast majority of the NHL contracts expire and the owners get a redo on contracts where all they have to do is stick to their individual budgets and they will be fine and make money. Of course thats not what the NHL owners want. They want to break the NHLPA. They are not even trying to make any settlement offers that have any chance of being accepted by the NHLPA.

A salary cap may have consequences in the calibre of player we get to see in the NHL. Some very good players may stay in Europe because they will no longer make the money in the NHL that it is worth relocating themselves and their families to a new continent. Players such as Peter Forsberg, Markus Naslund, Nicklas Lidstrom, Ilya Kovalchuk, Alexander Ovechkin may be lost from the NHL talent pool. Thats a serious bite. That would weaken the NHL for all the fans.

It seems quite likely that the new NHL CBA will have some kind of salary cap. That is too bad. That will make the league WORSE for the fan. The payoff for missing a year plus of NHL play will be a worse league in the future. Of course, given the uncertainty of the situation, it is quite possible that what seems likely now will not come to pass in practise. That is what I hope will be the situation. I hope we see an elite league (probably with less that 30 teams) with all the best talent in the world. I think that a salary cap league would not allow this. Too many top hockey players come from Europe and can make very good money in Europe, so won't venture to the NHL unless there is large financial gain for them to do so. A salary cap league would reduce that gain. Further, a salary cap league significantly reduces the length of time a player stays in one market and reduces the value of drafting while increasing the value of accountants. Who needs that?

You know, I've read that article word for word somewhere else. Who did you lift it off of?

Anyway, I've got several names for you: MacInnis, Nieuwendyk, Fleury, Suter, Vernon.

Guerein, Arnott, Joeseph, Weight.

Small and mid market teams have been forced to trade or otherwise lose players because of cost constraints for a decade now.

The entire "teams would be forced to trade players just to fit under a cap" argument would change life for the richest teams only. Everyone else already deals with this.

Just another weak argument from a fan of a rich team that doesnt want to give up it;s financial advantage.

First the article is original work.

I support strongly revenue sharing. I just do not support a salary cap.

If this lack of a salary cap helps the "big market" teams win so much explain to me why the last Stanley Cup we saw was big market Tampa Bay against big market Calgary. This supposed advantage the big markets team is for the most part a falacy.
The current NHL does not award *all* teams who draft well & develop talent -- only the teams that can afford emerging stars as they enter their second & third contracts can.

Regardless of whether it's a cap or better revenue sharing, or a combo of both, teams need to be on an equal footing financially in order for the league to work.

Please name a team that drafted well and developed talent that the current NHL did not reward.

The idea that there is a competitve balance problem in the NHL is a myth. The idea that the NHL lockout will address such a problem is an even bigger myth. Its quite likely that the new CBA will create a much bigger competitive balance problem - in fact some suggest that is what the NHL is actually trying to do. Markets like Ottawa, Tampa Bay and Atlanta look poised to dominate the NHL for the next several years unless we do something. The NHL has to force some of their talent to get to New York and Chicago since they are bigger markets that would better help the national image of the game if they won. We already saw that if Tampa Bay plays Calgary in the finals very few people watch - we need the Rangers, Kings and Blackhawks there instead.
Ottawa is the perfect example. They've drafted phenomenally well and their current success is proof. But without major changes, there is no chance that they'll be able to financially keep that team together when the core of that team is in their prime.

Detroit & Colorado, 2 other teams that draft very well, have the luxury of being able to (a) spend whatever they want on their core talent, and (b) supplement the talent with high-priced free agents. Could Ottawa afford a trio of players at $10 million each per season? Could Atlanta? Tampa? Probably not. That's the going rate to maintain elite talent these days, and it doesn't work for all but a handful of teams.
Lets just look at Ottawa for now. We can address further teams in the future. The Senators have a phenomenal team right now. This is a team that could win the Stanley Cup a few times - though they have yet to win it.

If we bring in a salary cap there is no way whatsoever that this team can be kept together. They will have to give up players that have value just to stay under the cap.

With no salary cap there is a chance that they can keep the team together.

Your solution of a salary cap guarantees the breakup of the team.
No, a salary cap (or revenue sharing system, for that matter), guarantees a level playing field. No doubt, there are problems inherent in a cap system, as fans of the NFL & NBA can attest to. But fans of those leagues can enjoy the fact that every team plays by the same rules and with the same basic resources. That's what's missing in the NHL and I don't care how they solve it. You can't have a good, competitive league where a handful of teams have the resources to spend double that of the rest.
Nothing can guarantee a level playing field.

A salary cap in this case (assuming it is a relatively low value compared to previous NHL payrolls and is not full of holes to be exploited) will force the teams that have the most talent to give some of that talent away to the weaker clubs that lack that talent.

Ottawa is one of those teams with the most talent in the NHL. They have lots of very good young players. This kind of team cannot be kept together under the salary cap that I expect the NHL will briong in. This is the kind of team that loses. Teams that have drafted a good young core lose. They cannot possibly keep that core together. They become a sopurce of talented players to be exploited by the other teams that didn't draft well.

Ironically, bringing in a salary cap might help markets like Los Angeles and New York take talented players away from Ottawa. Is this the *level playing field* you wanted?

I think Ottawa has a very good team that likely would have won the Stanley Cup (and probably more than once) without this lockout. I think their chances of winning have greatly diminished due to this lockout. First they lost the chance at winning in 2005. Second, they probably will have a situation where some of their young talent is made available to other teams due to free agency rules or a salary cap.

Ottawa fans should be some of the most upset people about this lockout in the entire NHL.

You already have a pretty level playing field (at least as far as finances go) if a market like Ottawa can be a Stanley Cup contender and markets like Calgary and Tampa Bay make the Stanley Cup finals. While the big markets New York, Los Angeles and Chicago all miss the playoffs. This problem never existed. The lockout has nothing to do with it. The lockout is about money. Ironically, the NHL as a whole makes more money when the New Yorks and Chicagos of the world get to be the best teams and the Tampas and Ottawas of the world are held back. That is Gary Bettman's NHL.
salary caps don't cause teams to lose developing players due to salary cap anymore than they used to. look at edmonton; for years noe they have been losing good players that they developed because they could not afford them. the salary cap will now keep down costs and they will be able to compete and keep players that they couldn't in the past
I think the irony in the last comment needs to be noted.
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