Peter Tessier: Make it Whole or Make it Fehr? A look at how the NHL and it's 'make it whole' proposal could work.

If you remember when Bettman first proposed 50/50 he also said he was open to discuss other means of making existing contracts whole. People make too much of the need for talks. Both sides know exactly what are the options. I think the NHLPA was in a much better position to do a deal when Bettman made the initial 50/50 offer. Looks bad to take the deal now.

I still don't get how any of this would work...if they reduce the salary cap,how will a lot of teams in the NHL get under the cap? Would existing contracts be reduced? Anyone have the time to explain?

I still don't get how any of this would work...if they reduce the salary cap,how will a lot of teams in the NHL get under the cap? Would existing contracts be reduced? Anyone have the time to explain?
- captainserious

The first year is tricky and should it go ahead I'm curious to see how a cap and HRr split happens. I've got some ideas but not so much time today.

Pete, I think you are forgetting that the cap ceiling is actually higher than just 1/30th of 57% (or 50%) of HRR. The ceiling is actually a percentage above that, and the floor is a percentage below that.

As it stands right now, if the players' share of HRR dropped down to 50% from 57%, the cap ceiling would become about $61.58 million instead of the currently-projected $70.2 million. I can only speculate as to what the floor would be, as I have heard rumours that owners actually want the floor to be closer to the cap midpoint, but if it were under the same rules as present, it would be $16 million below the cap, or $46.58 million.

Pete, I think you are forgetting that the cap ceiling is actually higher than just 1/30th of 57% (or 50%) of HRR. The ceiling is actually a percentage above that, and the floor is a percentage below that.

As it stands right now, if the players' share of HRR dropped down to 50% from 57%, the cap ceiling would become about $61.58 million instead of the currently-projected $70.2 million. I can only speculate as to what the floor would be, as I have heard rumours that owners actually want the floor to be closer to the cap midpoint, but if it were under the same rules as present, it would be $16 million below the cap, or $46.58 million.
- saul91

Good point and I'm using basic math to discuss the idea. The spread of the cap has always been problematic because players have voted again and again to use their 5% increase right- their way of more money spent.

If players are guaranteed a floor of HHR at 50% of 3.3 billion it's their best interest for league to grow revenue. Right now it's in their interest but not nearly to the same extent.

The salary cap right now is a spending limit not a pay out limit. Link the cap to a guaranteed floor of 1.65 bill and then let split revenue over it go back to players as profit sharing. The hard cap means deals going forward are just going to be A LOT less.