Wednesday, June 28, 2006

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The official salary cap announcement for the 2006/07 season has been made. The salary cap will rise to $44 million. This announcement comes only 4 days before free agency begins. Although the approximate value of the salary cap had been clear for a while, it is nice that the game of CalvinBall is ending (fo this year).

This salary cap rise is less than the CBA would have called for. The NHLPA had been trying to reduce the salary cap for next season in an effort to keep escrow payments down and keep Ted Saskin's job.

The salary floor also rises from $21.5 million to $28 million. This will force bottom feeding teams to add higher priced aging veterans to their lineup that do little to advance the causes of the team. We will see some more significant moves that will be this year's version of Adrian Aucoin and Nikolai Khabibulin to Chicago or Adam Foote and Sergei Fedorov to Columbus, where bad teams add payroll without actually improving. I'm sure some will view this as a "success" of the salary cap, since even the bad teams get some big money free agents (even if it would be in their best interests to abstain from buying and develop from within). Looking a bit longer term, the most important change this season is that the salary cap is already increasing to a level that teams like Carolina and Edmonton will not be able to match. Fewer and fewer teams will be able to afford to spend to the salary cap in coming years.

Given the precident of negotiating a new method of calculating the salary cap (instead of using the CBA method) it is unclear exactly how future salary caps will be determined or when we will know the method.

Here is the TSN story on the announcement, that fails to mention the fact that this salary cap announcement is not being done using the CBA rules or why there was any interest in changing these rules. TSN seems to want to hide the business of hockey as much as possible and only let the fan see the pieces that the NHL wants them to see. This is why we need an independent sporting media (that the blogosphere provides to some degree). The commercial sporting media is in the pockets of the major sports leagues.

What happens if a team doesn't spend enough to meet the floor? Do they pay the difference to the PA?
It might be worth it for a team to be 1-2 mil under and just pay it to the PA, rather than overpay one player a silly sum and push salaries out of whack.

Still, $28mil is not a hard number to attain, especially with the market out there.
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