Here's why the NHL won't be raising the salary cap
The NHL's decision to raise the salary cap is heavily influenced by its advertisement revenue.
Although ad revenue has more than doubled, from $623 million to $1.4 billion within the last two seasons, it seems insufficient to alleviate the pain of the salary cap for fans and players.
Most likely it'll bump just $1 million, but here's why NHLPA exec director Marty Walsh won't «close the door» on more.
Unfortunately, Gary Bettman and Bill Daly, who primarily represent ownership, are seen as antagonists. The projected revenue for this season is $6 billion, but Bettman has stated that there are still more calculations to make before it can be confirmed.
Despite this, players are still responsible for escrow, which they have never wanted but is mandated by the CBA. Escrow is a shared account between owners and players held until the season's end for accurate accounting.
The players were made accountable for half of the $1.1 billion debt they didn't cause to share the pain with ownership. The players have paid 94% of their escrow debt and still owe $70 million, so the league hesitates to raise the salary cap beyond $1 million.
This is bad for famous players who may want to continue playing for their preferred team as the league and players struggle.
Regrettably, fans will bear the brunt of the owners' financial problems, and the league will remain in disarray under the leadership of Gary Bettman.
| POLL | ||
Will the league raise the salary cap more than $1 Million next year? | ||
| yes | 64 | 60.4 % |
| no | 42 | 39.6 % |
| List of polls | ||
