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Torgonius · 06-21-2016, 10:00 PM

there are 3 NHL teams that act basically like ATMs for their owners, and can pretty much print money. Toronto, the NY Rangers and Montreal.

There were some other teams that were also mildly profitable, but not to the extent of those three.

In the days before the salary cap, those teams could just throw inordinate amounts of money at any free agent. The other franchises couldn't keep up without going out of business. Also, by throwing 1st line money at what were really 3rd line players, they wrecked the salary structure of the rest of the league.

On the other end of the spectrum, you had teams that would throw the bare minimum of salary, and field generally non-competitive teams.

The salary cap serves two functions. It determines the player's share of league revenue, and then compels teams to spend no more or no less than a strictly defined range, which is a percentage above and below the amount that is the total players' share divided by the number of franchises.

One mechanic that was added more recently is that a player in the minor leagues only has $925,000 of his salary discounted from the team's cap hit. It's called the 'Wade Redden' rule because the Rangers demoted Redden to the AHL to get rid of the cap hit his contract placed on them. They still had to pay him the money, but that was of little consequence to them. Now if a player has a 2 million dollar cap hit and gets sent to the AHL, he still counts as 1.075 million in cap hit.

There are also mechanics in place that prevent teams from circumventing the cap, but that's a different, much longer post!

A player's cap hit is basically the total dollar amount of his contract divided by the length of the contract. So a player who is on a 3 year, 3 million dollar total deal will have a cap hit of $1,000,000 per year, but his salary could be 950k, 1.00m, 1.05m over those 3 years.

Without more information, it's not possible to give you a definitive answer on your roster move. If you have a lot of cap space, then it isn't going to hurt you. If you don't have much cap space, then it becomes a much tougher decision.

06-21-2016, 10:00 PM	#2
Torgonius All Star Reserve Join Date: Nov 2013 Posts: 837	there are 3 NHL teams that act basically like ATMs for their owners, and can pretty much print money. Toronto, the NY Rangers and Montreal. There were some other teams that were also mildly profitable, but not to the extent of those three. In the days before the salary cap, those teams could just throw inordinate amounts of money at any free agent. The other franchises couldn't keep up without going out of business. Also, by throwing 1st line money at what were really 3rd line players, they wrecked the salary structure of the rest of the league. On the other end of the spectrum, you had teams that would throw the bare minimum of salary, and field generally non-competitive teams. The salary cap serves two functions. It determines the player's share of league revenue, and then compels teams to spend no more or no less than a strictly defined range, which is a percentage above and below the amount that is the total players' share divided by the number of franchises. One mechanic that was added more recently is that a player in the minor leagues only has $925,000 of his salary discounted from the team's cap hit. It's called the 'Wade Redden' rule because the Rangers demoted Redden to the AHL to get rid of the cap hit his contract placed on them. They still had to pay him the money, but that was of little consequence to them. Now if a player has a 2 million dollar cap hit and gets sent to the AHL, he still counts as 1.075 million in cap hit. There are also mechanics in place that prevent teams from circumventing the cap, but that's a different, much longer post! A player's cap hit is basically the total dollar amount of his contract divided by the length of the contract. So a player who is on a 3 year, 3 million dollar total deal will have a cap hit of $1,000,000 per year, but his salary could be 950k, 1.00m, 1.05m over those 3 years. Without more information, it's not possible to give you a definitive answer on your roster move. If you have a lot of cap space, then it isn't going to hurt you. If you don't have much cap space, then it becomes a much tougher decision.