Looks like the cap might go down next year
Posted: Fri Apr 24, 2015 12:28 pm
Less cap space to improve the team should be exciting. I am completely shocked (though I guess I shouldn't be) that the NHL, a multibillion dollar organization, has no form of currency protection on a deal this size. What a bunch of buffoons.
http://www.theglobeandmail.com/sports/h ... e24040463/
http://www.theglobeandmail.com/sports/h ... e24040463/
Rogers Media isn’t the only struggling partner in the NHL’s $5.2-billion, 12-year Canadian broadcast deal. The league itself is hurting, too.
The contract with Rogers is paid in Canadian dollars, which sharply declined in value against the U.S. dollar after the deal was announced on Nov. 26, 2013. As a result, the NHL is taking a large hit in the contract’s first season: One NHL governor, who spoke anonymously because league officials are forbidden to publicly discuss NHL business, said the currency hit for the 2014-2015 season was pegged at about 17 per cent, which, based on the annual average rights fee of $433-million, works out to a $73.61-million loss for the league.
This comes in addition to the revenue declines that all seven Canadian-based NHL teams are experiencing. They generate about 35 per cent of the league’s revenue, which hit a record total of $3.66-billion (U.S.) for the 2013-14 season. The NHL tracks its revenue in U.S. dollars.
A major loss on the Canadian TV deal for 2014-2015 will have an impact on the salary cap, currently $69-million (U.S.) per team this season. The cap is based on the league’s total hockey-related revenue (HRR), so it’s difficult to estimate the specific effect of the Rogers deal, but based on the league’s own calculations, it could result in a $1.3-million (U.S.) drop per team in the cap for next season.