A recent discussion topic has emerged with the economic downturn at hand. The talk centers on how drastically the salary cap will fall for the next season. And what effect that will have on general managers’ hands. It was recently announced that for the 2009-2010 season the cap will actually go up about $100,000 to $56.8 million max and a floor that is always $16 million less ($40.8 million). This was due to the players invoking their 5% escalator clause in the current CBA. The cap was going to drop a few million dollars, but the escalator negated that effect. This upcoming season is not the concern. It is the one that follows since the cap uses revenues from the preceeding season. The downturn really hadn’t affect the NHL as most of the cash was already collected before times changed.Fans and media alike would be Offside when they don’t agree that the owners beat themselves in the last CBA specifically in how the CBA treats the players and owners when the cap drops. It will become obvious to all by the end of this article as to why the players will always invoke the escalator regardless of the conditions of the NHL’s 30 businesses.When the revenues increases significantly, the owners then have to cut cheques to the players, beyond their regular paychecks to ensure that the players as a whole always reach 54% to 56% of total NHL revenues. Although there are very complicated formulas to decide how much each player would receive as “revenue bonus” money, this is essential cut and dried. This was the easy part. more »

In today’s Winnipeg Sun, Bruce Garrioch, the long time scribe covering all things NHL, especially Senators-related, broke a story about that recent conversation between Gary Bettman, Oren Koules and Len Barrie who are the two owners of the Tampa Bay Lightning. As background, it is said that things have gotten so rough between the two owners that the major hockey decisions are becoming paralyzed due to the lack of common vision. So bad in fact that Commissioner Bettman summoned both to New York for what is being termed “marriage counselling”. And even the GM had to send out notes to other GMs and player agents to re-establish who was making the hockey decisions on behalf of the Lightning. That in itself is newsworthy as it suggests a split may be imminent.Those hounding over the Coyotes would be Offside to suggest that the Arizona team offers the only option to Winnipeg.Garrioch’s news today was this: “From what I'm told, Bettman said: 'You better not trade this guy or nobody is going to buy that franchise',” a league source said yesterday. This was in reference to Vincent Lecavalier, the Lightning’s only superstar. more »

As pointed out by a long time and valued member of the Jetsowner.com forum this week, there is a troubling number of news stories that have come out that are related to the fight for the Coyotes.The member offers a candid explanation for some of the news stories and how they might be related to each other. “Just seems ironic that a group involved with the CFL gets exposed as a troubled team financially; and the same guys are stating their interest in an NHL team. This is Tom Wright the CFL commish (at the time of the money loan) giving Ballsy some tips on how to make your competition look a bit weaker.” The post goes further and says, “Why would someone expose this NOW when it happened so long ago?” This is in reference to the Toronto Argos co-owners David Cynamon and Howard Sokolowski secret loan from David Braley, the BC Lions owner, of roughly half of the sale price of $2 million, ironically also out of bankruptcy, to complete the purchase of their team. These same two gentlemen are one of four groups supposedly interested in buying the Coyotes and wanting to keep them in Phoenix as Gary Bettman has indicated.The fans and the media would be wildly Offside to believe any of these stories without first putting them through a reality check. more »

Part 2 of 2: The Winnipeg Contingency PlanNow onto what this means for Manitoba NHL fans. Winnipeg is outside territorial rights of all existing teams, so this becomes a non-issue. Based on the past relocation of Atlanta to Calgary in 1980, and all the past history listed above, there will be no relocation fee to move clubs anywhere including Winnipeg. So the last remaining question is “Is there a lost expansion opportunity cost to the NHL owners, should a team relocate to Winnipeg first?” If not, then an owner for the purchase price alone can set up shop in the Golden Boy’s city. If so, then how much extra would this cost?Certainly a case for extra fees can be made for any city that has been rumoured for expansion in the past. However, the leading contenders for expansion for the past 3 years have been Hamilton (mainly due to Balsillie’s ever present push), a second Toronto team, Waterloo (also mainly due to Balsillie’s ever present push), Las Vegas and Kansas City. Winnipeg, Houston, Portland and Seattle all seem to be listed as potentials, but they are simply not mentioned as often by both the NHL and the media as most probable for expansion. Hartford, Oklahoma City and Quebec City all seem to be C list at best.Winnipeg doesn’t score the same as all these potential US destinations in terms of locations that are “glamourous” or that will enhance prospects for the cash cow also known as a US TV network deal. more »

Part 1 of 2: Phoenix FeesJudge Redfield Baum has been put in a very difficult position in the Phoenix bankruptcy case. He has been pressing all sides to come to a reasonable compromise instead of ruling and creating a new large precedent whichever way he rules. The effects of this new precedent are what he is most mindful.If anyone thinks that these parties won't need the Judge to rule for them, they're Offside!For those more familiar with Stanley Cup finals rather than legal processes, you need not apologize. (It is truly a shame that this saga blindsides a great edition of the NHL playoffs, but I digress.) Precedents seem to help guide a court in making decision. Legal precedents from past court rulings are quite important when the cases are similar. But when those are lacking the court then sees what precedents occur in similar past circumstances outside the court room. And the history of the NHL then plays a pivotal role. Does Judge Baum take into account past NHL relocations and related fees when deciding what is fair for this relocation fee? more »