Cap Numbers, Hudler’s Hurdles and Restocking the Blueline
Hudler looks for some scraps
Photo: Jeff Vinnick - Getty Images
Larry Brooks from the NY Post reports that the salary cap for the 2007-08 season could be as high as $52 million. Here is what Brooks reported on the cap back in February.
If revenues are $2.3 billion this year…the cap should be no lower than $47.88 million. If the union exercises its right under Article 50.5 (b) (i) to a 5-percent bump, the 2007-08 cap would approach $50.27 million. Adopting a modest 3-percent bump would increase the cap to $49.3 million next season. That’s not a reach, and that’s not a money grab - that’s a number the players are entitled to under the CBA.
It turns out that revenues were actually closer to $2.4 billion. So if the players push for the 5% bump that is part of their agreement with the owners, the top end of the cap number would be closer to $52 million. That’s obviously good news for the Red Wings but it is going to present a problem for some of the teams that pushed for the hard cap in the first place. Ted Leonsis talked a little bit about the economic situation for the Caps in this blog entry.
The Caps lost money last year under the new CBA, revenue sharing and at a league low payroll…And we grew our revenues but our expenses grew faster than our revenues. Hence, we lost more last year than the year before as ticket sales and related revenue growth didn’t cover the increase in expenses.
…If the Caps spent to the top of the salary cap ceiling, we would lose a lot of money. If we spend to the midpoint of the cap ($36 million this season) and get to 80 percent sell through on ticket sales — at league average prices — we could have a shot at breaking even. If we make the playoffs and go deep into the playoffs, that would generate further revenues. If you spend to the cap max, it is very possible that even teams that sell out could lose money. That is a decision that each and every owner must make and it is why the CBA has a range from top to bottom on expenditures.
This is one of the things that is becoming fairly obvious. There are very few markets where you can spend to or near the cap and make money even if you do not make the playoffs. I’d be shocked if the Maple Leafs and Canadiens didn’t make money this season. But most teams are probably going to have to spend up towards the maximum [the “cap” as it were] to have a chance to make the playoffs. Pittsburgh, Nashville and the Islanders were the only teams that made the playoffs and didn’t spend within 95% [$41.8 million] of the cap.
But if you do so the only way you can really make money is to make it at least to the second round. When the Red Wings had a payroll in excess of $60 million and the team was selling out every single game they still didn’t make money unless they made an extended run through the playoffs. The owner was obviously willing to take that risk. The team owner in Buffalo is signalling he might not be willing to do that.
So the ceiling and the basement of the cap structure allows a younger team like the Caps or Pittsburgh to spend less money on salary and have a chance at building a team without getting killed financially. But then when the team starts to have the type of success the Sabres have experienced the past two seasons, it forces an owner to make a decision on whether they want to pay their own players or pick up a key free agent or two to try and make a playoff run. The teams that don’t build intelligently but spend near the cap and then don’t make the playoffs [Chicago] are going to continue to lose money and probably complain about player salaries.
Jiri Hudler was interviewed by McKeen’s. He talked a little bit about working to earn a full-time spot in the Detroit lineup.
McKeen’s: You started the year off a tad slow but eventually started to get more comfortable in the second half. Anything you could attribute that to at all?
Hudler: I got more opportunities to prove myself. It is hard sometimes because when you look down this roster sheet, there are so many good players. So when you get a chance you really have to settle down and focus.
Finally, Yzerman is God takes a look at the free agents Detroit is looking to retain on defense. I think Pete correctly gauges Markov’s worth to the Red Wings:
I’m a big fan of Markov’s…He’s as physical as any Wings defenseman, and of those, the most defensively responsible. Kronwall has a greater propensity to hit but it often gets him out of position…In my mind he is the perfect compliment to Lidstrom - a top tier defender capable of playing against the top competition, but brings physicality that Lidstrom doesn’t. Also an underrated skater and puckmover. He had a solid defensive season, and did manage to stay healthy. He is, however, a defensive defenseman, and defense is cheaper than offense. Last offseason I guessed 2.5M for him and was spot on. I’ll say he deserves the same again, 3M at the most. Cost: 2.5M - 3.0M
Lidstrom was on pace to put up some ungodly plus/minus number before Markov got injured early in the season. Once Lidstrom lost him on the top pairing Lidstrom’s plus/minus started to drop. Everyone who has been paired with Lidstrom benefits by having their plus/minus get inflated (Lilja was a perfect example in 2005-06) but Markov seemed to be the rare case where Lidstrom saw his plus/minus increase due to being paired with Markov. So I’d like to see him back next year too.
2007 08 NHL Salary Cap Danny Markov Jiri Hudler Red WingsNo Comments
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