Friday, December 16, 2005

A RISE IN STIPEND

There is good news for all the big-market clubs in the NHL. They've got more money to spend next season. The salary cap for N.H.L. teams will rise next season, to $40 million to $45 million from the current $39 million. If the cap goes to $45 million, the maximum salary for a player would rise to $9 million from $7.8 million. The salary cap that is based on league revenue was set up after a sour player shut out that swabbed out all of last season. I am sure, the folks in the NHL fraternity would be probably looking at next year when the cap possibly coming down or staying the same. It is a different landscape. It doesn't sound like it's going up a whole lot if it ends up on the lower end but if it ends up on the higher end it would have a little more room to spend providing the budget would permit us to go to that number. The current projections call for revenues to be just over $2 billion this season. Under the CBA, the next season's salary cap is based on the previous year's revenue total. One clause is that if attendance dwindles in the coming months and revenues instead total $1.9 billion, the cap would be $39.8 million next season. Not all clubs will use the new limit next season. Some teams have budgets and won't spend to the new maximum.

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