NHL commissioner Gary Bettman and deputy commissioner Bill Daly held media availability today from the board of governors meeting and updated several important issues. While noting that it will be an NHLPA decision on whether or not to participate in the Olympics, and reassuring that there is no issue with the Arizona Coyotes, perhaps the firmest news that Bettman could share was that of salary cap projections moving forward.
After announcing that hockey-related revenues will reach close to $5.2B for this season, the league will indeed increase the salary cap for next season by $1MM. That means an $82.5MM cap ceiling, the same number that was projected several months ago by Daily Faceoff.
Importantly though, Bettman explained that it will not take quite as long for the players to repay the escrow debt as originally expected. The league should be made whole at the end of the 2024-25 season, meaning a substantial salary cap increase could follow that summer. That’s a year earlier than many projections showed months ago, and speaks to just how well the revenues of the league have rebounded this season.
At the start of the year, the players owed more than $1B in escrow debt to the owners, and instead of all at once, have agreed to a slower repayment schedule. The escrow rate dropped this year from around 20 percent to 17 and is expected to drop to around 10 for the 2022-23 season.
For the teams that are in salary cap trouble at the moment, still trying to negotiate a ceiling that hasn’t moved in the last couple of years, a $1MM increase isn’t going to help very much. But the expectation of it spiking in 2025-26 is good news, especially for those that are trending toward a competitive window at that point.
Bettman saying revenues are up sounded somewhat ambiguous. Is he counting the new TV deal in that statement? Attendance is down in many arenas. Did all teams impose price jack-ups on the folks to make up for this? Merchandise sales can’t impact the total bottom line that much, even in spite of SEA. (These are more rhetorical questions, so I don’t want you, @Gavin, to spend any time on these. I’d grill Bettman, if I felt this would keep me up at night.)
It does include the TV/streaming money, yes.
@Gavin – Thanks, I thought that was at least part of it, but I’ll be interested in hearing what he says at the end of the year, when the gate receipts don’t come in at a number that they projected.
Likely takes into account ad money too: stickers on the helmets and such. I’m afraid that jerseys are going to look like European ones in just a few years.
@Nha Trang – O ye, of little faith. Gary said that wouldn’t happen. You don’t believe him? ;)
That will give the broadcasters fits, even worse than the ill-advised dark-on-dark themes for some alternate jerseys.
See Gary! is protecting his interest, in his Coyotes with their debacle in the desert guess he will keep them there , always “got his hand in the cookie jar”
@G – You know, bringing up that point, there, it made me wonder. Did Gary consider the possibility that the Kyoots might actually *want* to escape to Houston/Quebec City/(name a fave city of your choosing) ?
He is just protecting them for now, he is holding that card for a rebound of the economy and then a much higher relocation fee can be expected. They are building in the desert, will bring a windfall from someone, and win shortly thereafter.
(cautiously optimistic shark noises)
No one wants to hear it, but Bettman is a top 3-5 all time pro sports commissioner. Right up there with Rozelle, Tagliabue and Stern.
I still find it especially amazing when Penguins fans hate him…as if Mario had to stop Bettman from selling the Pens to a guy who was going to move then instead of the other way around.
I remember Josh Bell on the Pirates. Is that why you’re pro Tagliaboooooo? Cause he was a real piece of trash buddy. Word of advice, stay mum on being pro Tagliabooo if you ever visit Baltimore.