Report: Big market final 4 could provide boost for 2014-15 salary cap
The upper- and lower-limit (or "floor") of the NHL salary cap is tied to league revenues, and with major media markets contesting both the Eastern Conference and Western Conference finals, the league is cashing in.
The NHL is cashing in to such an extent that it could impact where the upper-limit of the salary cap is set for the 2014-15 season, writes James Mirtle of The Globe and Mail:
Even before the matchups were set, the NHL was going to hit a record on that front. Based on the league projecting next year’s salary cap to fall in the $69-million (U.S.) range, revenues are up to at least the $3.6-billion range – a nearly 10-per-cent jump from the last full season back in 2011-12.
With teams such as the Habs and Rangers in play, however, that’s likely to keep creeping higher. Montreal is generating more than $3-million in gate revenue per home date – nearly double that of a small market – and New York and Chicago aren’t far behind.
With the Canadiens alone having seven home dates so far – and guaranteed an eighth on Tuesday – that’s a significant difference maker. Every extra $20-million the NHL pulls in pushes next year’s salary cap up roughly $400,000, giving the bean counters even more incentive to cheer for the last three series to all go seven games.
Mirtle also provided this handy table on Twitter, which visualizes roughly how every additional $20-million in revenue generated impacts the upper- and lower-limits of the NHL's spending cap:
Here are some rough calculations on how NHL's revenue this year will affect the cap next year (in millions) pic.twitter.com/86UsfKeNrw
— James Mirtle (@mirtle) May 26, 2014
Bettman has informally projected that the upper-limit of the 2014-15 NHL salary cap will come in somewhere between $69-70 million. That's a lower figure than was anticipated in the fall, before the value of the Canadian dollar weakened significantly in early 2014.
The NHL's salary cap will not be impacted by the landmark $5.2 billion Canadian broadcast rights agreement between the NHL and Rogers Sportsnet signed this past November. That additional revenue will kick in next season, and be factored into the salary cap figure for the 2015-16 NHL season.