NHL News: Stadium Series Yields Multi-Million Dollar Payout
Apr 12, 2014; Glendale, AZ, USA; Phoenix Coyotes center Mike Ribeiro (63) celebrates with defenseman Connor Murphy (5), defenseman Oliver Ekman-Larsson (23) and left wing Martin Erat (10) after scoring a goal in the second period against the San Jose Sharks at Jobing.com Arena. Mandatory Credit: Matt Kartozian-USA TODAY Sports
1. The team could see bigger signings.
One possible effect of the huge, across-the-board league payout is an increase in the salary cap for the upcoming year. The salary cap is based on the upcoming year’s anticipated HRR, or hockey-related revenue, which is based off of profits from ticket sales, novelty fan gear, concessions, and parking.
It’s most likely that the payout will be put into the upcoming year’s HRR. The league is usually pretty conservative in its estimate for projected HRR’s, but with an extra $5 million guaranteed for every team, it’s probable that the salary cap could jump up to as high as $75 million.
“The league is usually pretty conservative in its estimate for projected HRR’s, but with an extra $5 million guaranteed for every team, it’s probable that the salary cap could jump up to as high as $75 million.”
What does this mean for the Coyotes? They’re a team that commonly doles out contracts on the conservative side- the team’s highest-paid players, Shane Doan and Oliver Ekman-Larsson, are paid $5.3 million and $5.5 million, respectively.
A salary cap that increases by up to six million dollars means more than just a higher ceiling for contracts- it means a higher floor, as well. Pushing the salary cap up as high as the Rogers bonus could would force the team’s hand. With a significantly higher salary cap floor, the team would need to make some bigger signings in order to stay above the lower limit. This means bigger contracts for undervalued players, but it also means a higher potential for bigger-name signings. The team may not end up with a P.K. Subban, but they’d most likely need to sign at least one six-or-seven million dollar roster player. The league is saturated with talent right now- and the Coyotes could only benefit from this.