What will OLN deal mean for salary cap

[section 110]

So, now that OLN will pay the NHL $65mm this year, how does that affect the salary cap? Was revenue from a TV deal factored in to the total revenue picture?

If so, how much did they anticipate?

If not, and this counts as new revenue then by my calculations, the players should receive $35.1 million (54% of $65mm) and therefore each team's salary cap could potentially increase by $1.17 million (35.1/30).

[mddevsfan]

So, now that OLN will pay the NHL $65mm this year, how does that affect the salary cap?  Was revenue from a TV deal factored in to the total revenue picture?

If so, how much did they anticipate?

If not, and this counts as new revenue then by my calculations, the players should receive $35.1 million (54% of $65mm) and therefore each team's salary cap could potentially increase by $1.17 million (35.1/30).

<{POST_SNAPBACK}>

They should have just pick an arbitrary number for this year's cap, then use this year's revenue to set next year's cap, and so on. All this escrow stuff and projected revenues are just going to get too complicated. And then you throw in problems like this one here, where the projection changes...

Basing the cap on the previous year would give everybody involved a SOLID figure to base their capology, accounting, etc. on.

To answer some of your questions, they probably anticipated a TV deal, but most likely not one this good. I don't think the cap changes during the season, but more revenue means the players are more likely to get their full escrow back at the end of the year.

My way would be so much simpler.

[Lou Miller]

So, now that OLN will pay the NHL $65mm this year, how does that affect the salary cap?  Was revenue from a TV deal factored in to the total revenue picture?

If so, how much did they anticipate?

If not, and this counts as new revenue then by my calculations, the players should receive $35.1 million (54% of $65mm) and therefore each team's salary cap could potentially increase by $1.17 million (35.1/30).

<{POST_SNAPBACK}>

The cap number was based on revenues from the 03-04 season and projections for 04-05, which included a deal with ESPN. The new deal with Comcast probably won't change things much at all since the ESPN deal was for 60 million a year. Increases, and decreases, in ticket sales will have a much larger impact on the cap than the TV deal will. Right now, there seems to be a lot more interest in a lot of NHL cities due to player movement. With a lot of the bottom feeders picking up decent players, tickets sales league wide should increase. It's hard to say exactly because there's still a huge unknown when it comes to how many fans won't come back. Right now, it looks like there will be an increase though.