Forums/NHL

Question about understanding the salary cap.

Jul 20 at 5:46
#1
Joined: Nov 2018
Posts: 45
Likes: 18
When we speak of "the cap" we always speak to the upper limit, or 81.5M this season. Now there are actually 3 numbers that are actually set, the low, or floor, the mid point, and the ceiling, or the upper limit. From my understanding it is the midpoint that is the number that is actually the number based on revenue projections and then 15% on either side is added or subtracted to bet to the upper and lower numbers. Does anyone know if I am off base here or is that the case?

Thanks for the Help gang!
Jul 23 at 8:01
#2
Below Market Value
Joined: Nov 2015
Posts: 1,232
Likes: 1,073
That's correct. Revenue projections are set with the idea that half of the teams will spend below the midpoint, and the other half will spend above the midpoint. That's why escrow payments are so high, because more teams spend above the midpoint than below, causing player salaries to exceed the 50/50 split of Hockey Related Revenue.
 
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