Travis Yost: The Cap Crash Ain't Coming This Year

I hate that I love this team....

Great news. Now the Islanders are poised to become the Yankees of the NHL.

Can we use canadian tire money to offset ,any imbalance in spending .Between us and the other 29 teams ???

Travis Yost: The Cap Crash Ain't Coming This Year
- Travis Yost

At 3.7 Billion for this year; next years cap would not be close to 70 million.

3.7 billion revenues only calculates to about a 62 million cap next year?

The only thing I can see bring down this number in the future is a declining canadian dollar, but it wouldn't kill the salary cap between 5-10M, I'm thinking 2M at the very most. And if the league goes through with expanding to 32 teams, as well as hopefully relocating a couple of life support teams (Phoenix and Florida I'm looking at you), then in a perfect world Melnyk either ponies up or sells the team.

Six mil more the next two seasons?

Pretty sure that is gonna make a lot of the top teams that were already straining to make cap able to keep it going with a bit of ease. Also, holy crap thats a sizable cap increase each year.

Melnyk is a snake oil salesman...

I feel bad for Sens fans, Melnyk was once viewed as the savior.... Shame it has come to this

Competing on the backs of cheap youth only works for so long, a mediocre draft or 2 and it all comes crashing down

The only thing I can see bring down this number in the future is a declining canadian dollar, but it wouldn't kill the salary cap between 5-10M, I'm thinking 2M at the very most. And if the league goes through with expanding to 32 teams, as well as hopefully relocating a couple of life support teams (Phoenix and Florida I'm looking at you), then in a perfect world Melnyk either ponies up or sells the team.
- PaskySens

Yeah. And AFAIK, Canadian teams have hedging strategies against that, too. Ottawa said this season that they did.

Yeah. And AFAIK, Canadian teams have hedging strategies against that, too. Ottawa said this season that they did.
- Travis Yost

Hedging strategies dont always work....sometimes they might work in your favor but some times they bite you.

At 3.7 Billion for this year; next years cap would not be close to 70 million.

3.7 billion revenues only calculates to about a 62 million cap next year?
- Iggysbff

They expect revenues to exceed $4B w/ new CDN TV deal next year, effecting 2015-2016.

Melnyk is a snake oil salesman...

I feel bad for Sens fans, Melnyk was once viewed as the savior.... Shame it has come to this

Competing on the backs of cheap youth only works for so long, a mediocre draft or 2 and it all comes crashing down
- TheGame316

maybe John Spano is looking to get a team again

Still thinking Canadian Tire is a darkhorse buyer here,they might be just giving EM just enough rope to finish hanging himself

They expect revenues to exceed $4B w/ new CDN TV deal next year, effecting 2015-2016.
- Travis Yost

2014-15 cap is set on this years revenue. 3.7 billion would be way under 70 mill cap for next season. Players get 50%.

Cap would be around 66.5 floor around 50?

They expect revenues to exceed $4B w/ new CDN TV deal next year, effecting 2015-2016.
- Travis Yost

I believe the 62M referenced (off the 3.7B revenue) is actually the midpoint for cap calculation so the cap is actually 15% above this number and the floor is 15% below this number foe next season..

At 3.7 Billion for this year; next years cap would not be close to 70 million.

3.7 billion revenues only calculates to about a 62 million cap next year?
- Iggysbff

On this one I believe your correct. Most NHL revenue is shared revenue in terms of national broadcasting and advertising sponsorship deals. All the teams get the same amount of money from the big pool. The only significant difference is the discretion provided in ticket sales, concessions and local broadcast rights.

So, here is a list of some of the current deals in place in regard to local broadcasting. As you can see all Canadian teams should be spending near the cap.

I understand what Melnyk is doing from a business perspective, it infuriates me as a fan.

1. Montreal Canadiens - $61m
2. Toronto Maple Leafs - $41m/year (Sportsnet, TSN, Leafs TV); through 2014-15.
3. New York Rangers - $35m (MSG Network)
4. Ottawa Senators - $30m ($33m CAD) (TSN/RDS); through 2025-26; (deal starts next season: up from $10/yr)
5. Detroit Red Wings - $30m (Fox Sports Detroit); through 2018-19 or 19-20 (not sure)
6. Vancouver Canucks - $25m (Sportsnet Pacific, Sportsnet One); through 22-23 season
7. New York Islanders - $24m (MSG Network); through 2030-31
8. New Jersey Devils - $24m (MSG Network); through 2024-25
9. Dallas Stars - $20m (Fox Sports Southwest); ends this season
10. Los Angeles Kings - $20m (Fox Sports West); through 23-24
11. Pittsburgh Penguins - $18m (Root Sports); through 28-29

I believe the 62M referenced (off the 3.7B revenue) is actually the midpoint for cap calculation so the cap is actually 15% above this number and the floor is 15% below this number foe next season..
- jerryb

Yes I get the 15% above and below the mid point. I think where it may be off is the revenue. Is the cap set off of this years revenue or next years "estimate"?

On this one I believe your correct. Most NHL revenue is shared revenue in terms of national broadcasting and advertising sponsorship deals. All the teams get the same amount of money from the big pool. The only significant difference is the discretion provided in ticket sales, concessions and local broadcast rights.

So, here is a list of some of the current deals in place in regard to local broadcasting. As you can see all Canadian teams should be spending near the cap.

I understand what Melnyk is doing from a business perspective, it infuriates me as a fan.
2. Toronto Maple Leafs - $41m/year (Sportsnet, TSN, Leafs TV); through 2014-15.
3. New York Rangers - $35m (MSG Network)
4. Ottawa Senators - $30m ($33m CAD) (TSN/RDS); through 2025-26; (deal starts next season: up from $10/yr)
5. Detroit Red Wings - $30m (Fox Sports Detroit); through 2018-19 or 19-20 (not sure)
6. Vancouver Canucks - $25m (Sportsnet Pacific, Sportsnet One); through 22-23 season
7. New York Islanders - $24m (MSG Network); through 2030-31
8. New Jersey Devils - $24m (MSG Network); through 2024-25
9. Dallas Stars - $20m (Fox Sports Southwest); ends this season
10. Los Angeles Kings - $20m (Fox Sports West); through 23-24
11. Pittsburgh Penguins - $18m (Root Sports); through 28-29
- spatso

putting a team on the ice that cant compete and will likely miss the playoffs doesnt make sense regardless of how you look at it.

lost revenues from a business perspective and inevitably lost fans...i love the sens and have stuck with them through thick and thin, i have had season or half season tickets for almost 10 years, this the first time I actually really thought about if i wanted to renew my tickets...and thats all because of Melnyk

Yes I get the 15% above and below the mid point. I think where it may be off is the revenue. Is the cap set off of this years revenue or next years "estimate"?
- Iggysbff

I believe it is based off this years revenue which is estimated to be about 3.7B. Therefore about 3.7B times 50% is approximately 1.85B which is then divided by 30 teams for approximately 61M which is the midpoint. Cap is 15% above for about 70M and floor is 15% below for about 52M. At least this is my understanding.

putting a team on the ice that cant compete and will likely miss the playoffs doesnt make sense regardless of how you look at it.

lost revenues from a business perspective and inevitably lost fans...i love the sens and have stuck with them through thick and thin, i have had season or half season tickets for almost 10 years, this the first time I actually really thought about if i wanted to renew my tickets...and thats all because of Melnyk
- TheMike12

I can be angry with Melnyk for lots of reasons and I am. But I also know his non spending is not revenue related. Clearly he has a business agenda which is his right as an owner. But at some point, the other owners and players are going to notice his failure to pay players in accordance with HRR salary formula.

If the league and his partners are agreeable to what he is doing....there has to be a plan. And, you know they are not going to savage their own ticket base and box owners.

I know a few box owners. They are as much in the dark and as frustrated as I am. Everyone anticipates that something has to break that gives us some clarity.

not fair to us fan knowing that our owner could be breaking the bank with our new tv deal but decides to play young players to cheap out.. Eugene time to spend some cash .. Matt moulson,ryan challahan,Leo komorov

If I am TSN/RDS I am pretty unhappy that I sign a huge TV deal with Melnyk at $33m per season and he pockets the money rather than upgrade the team.

I can be angry with Melnyk for lots of reasons and I am. But I also know his non spending is not revenue related. Clearly he has a business agenda which is his right as an owner. But at some point, the other owners and players are going to notice his failure to pay players in accordance with HRR salary formula.

If the league and his partners are agreeable to what he is doing....there has to be a plan. And, you know they are not going to savage their own ticket base and box owners.

I know a few box owners. They are as much in the dark and as frustrated as I am. Everyone anticipates that something has to break that gives us some clarity.
- spatso

Female Viagra anyone?

If I am TSN/RDS I am pretty unhappy that I sign a huge TV deal with Melnyk at $33m per season and he pockets the money rather than upgrade the team.
- spatso

Let's not jump the gun. There are irons in the fire.

Not sure how hot the fire is though.

Let's not jump the gun. There are irons in the fire.

Not sure how hot the fire is though.
- Cup 06

my assumption is nothing will happen...melnyk has done nothing to install any confidence for the fan base..

i assume you are an employee of the team or something along those lines so I get why you somewhat support melnyk or at least try to defend him, but there isnt much to be said at this point with him....he has hurt the team and the fanbase