Morning Free Association, 7-20-2016 — I’m a Doctor, not an Escalator

On Thurday night, Renaud Lavoie tweeted out that the NHLPA was planning on approving the salary cap escalator for 2016-17.


As he is based in Montreal, the original tweet was in barbaric Hab-speak, and will not be repeated here wink

(Yeah, I was writing Friday’s morning article at the time, but I was on a roll so I left it ’till this morning.)

So what does that mean?
It means that the NHLPA is allowing the league to raise the salary cap by 5% based on an assumption of revenue increasing year-over-year. The salary cap will thus be higher than it would be using the ‘safe’ conservative estimate based on 2015-16 revenues. This is known as the salary cap escalator.
Doctor!
“I’m a Doctor, not an escalator!”

Last year’s salary cap was $71.4 million (US$). In December, Gary Bettman estimated the cap could rise by $3M for the 2016-17 season. This estimate assumed that the players would approve the escalator for another season.

And according to this TSN reporter, Bill Daly provided a more specific estimate this March:

And most recently, Larry Brooks reports that the cap could actually shrink if the escalator is not invoked to ~$69.3M.

The players usually agree to the extra cap space, but have been known to say no, and this was a controversial topic last spring.

You may be asking yourself, if voting yes means a higher salary cap, then why would the players ever say no?
Well, one sticking point is the amount of money the players have to set aside to account for changes in the cap. The players have to put some of their money into an ‘escrow account’ to handle the case where the salary cap goes down relative to the original estimate. This adds up to ~15% of their pay that is witheld from their checks until the actual cap numbers are figured out. This is money that they cannot invest or spend until it is released. (However, see below…)

A bigger factor is new contracts vs existing contracts. The final salary cap is a fixed number league-wide – essentially 50% of all “Hockey Related Revenue” divided by 30 teams. Players getting new contracts want the cap estimate to go up, so they can negotiate bigger contracts. Players with existing contracts want the cap estimates to be more conservative, so they are not at risk of losing some of that escrow money. If the league allocates more money than they actually have, due to lousy estimates, some of that escrow money is given back to the teams rather than the players. — This is not something they would be happy about, and it apparently happens.

So there are conflicting motivations — if they don’t approve the bump, then salaries across the league grow more slowly. If they are too aggressive in approving it, veterans don’t get all the money they negotiated for.
stop hitting yourself
However, this year it seems like the two factions will come together quickly.
What is this thing you call 'love'?
Phew!

Good morning, hockey fans!
Live long and prosper.
NERDS!

About IntentionallyWidenberg

Position: Power Forward. Occupation: I am the Egg Man. Contrary to popular belief, I am not the Walrus.
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Thetallest81
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Thetallest81
Satan 81's Sister
Editor

Bruins opening the season on the road playing the Blue Jackets and Leafs in their home openers.

carvinbass18
Editor

You spelled “Flyers” wrong for the home opener

Satan81
Admin

I guess the Bruins aren’t trading Krejci:

carvinbass18
Editor

The thread on that is amazing

Satan81
Admin

Round One of the 2016 NHL Entry Draft is on Friday, starting at 7pm EST. We’ll have a Draft Party Thread going for it, so get your drinks and party hats ready!

Rounds 2-7 are on Saturday, starting at 10am EST. We’ll have a Draft Party Thread for that one, too.

The Once and Future Bagel Bruin
Member

The band had two gigs this weekend. We made some money!

Last night my brother and I rushed to get to the rink for our 10:30 hockey game. We lost 3-2 in OT, but we played very well. We have a good group and we’ve grown a lot from our first game which we lost 7-1

UnstableElement
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UnstableElement

Isn’t it great making money for what you enjoy doing.

And yeah, your team this time around sounds a lot better.

The Once and Future Bagel Bruin
Member

It pays for the beer and boxed wine!

Long-Winded Striped Mofo
Member
Long-Winded Striped Mofo

Two gigs and a hockey game = Fucking awesome weekend!

The Once and Future Bagel Bruin
Member

I’m tired, but it was a great weekend! You could have enjoyed our second gig. We play on a large patio overlooking the Yadkin River. We played to people kayaking!

Satan 81's Sister
Editor

Gigs by the water are the best gigs.

UnstableElement
Member
UnstableElement

Good Morning!

Had a good weekend. Took the parents out to dinner for all their help and got a lot of work done. Well, up until the point I bought Overwatch. Whoops. First time I’ve bought a game in ages. I regret nothing so far.

I accepted the offer on Friday. Took the drug test this morning. I should start crafting a resignation letter so I can actually resign when I get the results back.

The Once and Future Bagel Bruin
Member

Short and sweet. No one in HR likes reading BS.

UnstableElement
Member
UnstableElement

Thanks for the advice. That was my plan. I’d rather explain my reasons verbally (and keep them as PC as possible, despite what I’d love to say).

The Once and Future Bagel Bruin
Member

Be factual and polite. And more importantly, short and sweet. If you really want to give it to them, do it in the exit interview.

Satan 81's Sister
Editor

Dear Job,

Suck it.

Love,
UE

UnstableElement
Member
UnstableElement

P.S. This is what happens when you don’t make me a fucking knight.

carvinbass18
Editor

“I gave you the Ol’ Razzle Dazzle and you gave me NOTHING”

Satan 81's Sister
Editor

Long-Winded Striped Mofo
Member
Long-Winded Striped Mofo

This is killing me this morning! I saw some similar action this weekend. Hilarious!

Satan 81's Sister
Editor

It’s one of my favorite gifs!

carvinbass18
Editor

Buongiorno!
This mornings MFA is a wild ride. Thank you for the information though, top notch.

Had a terrific weekend. Did some yard work on Saturday & hung out w/ Brandon & his daughter. Softball was canceled on Sunday for Fathers Day but instead I went out golfing with a buddy for the first time in a year plus. Shot a 125, which is only about 10 strokes off my normal game. Pretty happy with that. NHL awards is on Wednesday then the draft on Friday!

Long-Winded Striped Mofo
Member
Long-Winded Striped Mofo

Good Morning All!
Back form Mom’s 96th. I survived, as did Jo. That was one wild party. Mom was really with it and thoroughly enjoyed herself. There was only a little drama and I wasn’t involved… much. My sister did throw us out of her house about 2:30 Friday night/ Saturday morning. Jo and I were smart, we left then. Others hung around to hear her go really nuts about 4. Saturday went well. Jo and I went to crash about 10:30 – 11. There was a little more drama about midnight, I hear.
We had a nice day of disc golf yesterday with my youngest. That was the best Father’s Day present I could have – time with one of my kids.
Coffee – no bourbon on tap. Can’t say I’m getting used to it, but it’s okay.
Hope you all had a wonderful weekend.

Long-Winded Striped Mofo
Member
Long-Winded Striped Mofo

One thing that turned out well… My siblings decided to buy my brother’s ticket back home. I only bought him one way as he didn’t know what day he wanted to go back. My family is pretty cool.

The Once and Future Bagel Bruin
Member

Thanks for the salary cap breakdown. I understand escrow now!

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