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View Full Version : If the Sabres spend to the NHL Salary Cap they lose revenue sharing...



Ebenezer
02-04-2011, 06:45 AM
I didn't know that. I found that part of the press conference interesting. so, obviously the internal cap is set so that they receive a certain amount of revenue as to break even. I wonder how much they lose if they spend $1 mil over, $2 mil over, right to the cap. As they said on the radio this morning does the $4 mil they don't spend under the cap cost them $12 mil in revenue sharing? More over, will this keep TP from spending to the cap?

Thoughts?

OpIv37
02-04-2011, 07:38 AM
I guess it comes down to whether or not the Sabres can be profitable without revenue sharing.

If they are in the red without revenue sharing, then I don't think Pegula will spend to the cap and essentially turn down profit.

However, there is a small chance that he will accept less profit. If the team can spend to the cap and still finish in the black- maybe it will only be $1 million in the black vs $12 million- Pegula MIGHT accept that. He's already ridiculously wealthy and may care more about winning a championship than another couple million in the pile.

I don't think we can count on either of those, though. It seems likely that the "internal cap" nonsense will continue.

Michael82
02-04-2011, 08:41 AM
I'm betting that Pegula has a set limit he will spend and it may be up to the cap for a few years...the team can try hard for a championship and then if they win one, they can get rid of players, like the Blackhawks did and other teams have done, and start over again.

Dozerdog
02-04-2011, 08:50 AM
What makes or breaks profitability for most mid-market NHL teams is making the playoffs. If you can get to the 2nd round and host 5-6 games you will get your team into the black. The key is- will spending to the cap get you to round 2 or even 3 of the playoffs?

OpIv37
02-04-2011, 09:17 AM
The key is- will spending to the cap get you to round 2 or even 3 of the playoffs?

depends who you pay. We let Danny Briere walk but paid Thomas Vanek and Tim Connolly.

Ebenezer
02-04-2011, 12:22 PM
I guess it comes down to whether or not the Sabres can be profitable without revenue sharing.

If they are in the red without revenue sharing, then I don't think Pegula will spend to the cap and essentially turn down profit.

However, there is a small chance that he will accept less profit. If the team can spend to the cap and still finish in the black- maybe it will only be $1 million in the black vs $12 million- Pegula MIGHT accept that. He's already ridiculously wealthy and may care more about winning a championship than another couple million in the pile.

I don't think we can count on either of those, though. It seems likely that the "internal cap" nonsense will continue.

If you are correct then shouldn't people temper their enthusiasm?? Or is TG being a fan still going to bring us a cup?

Ebenezer
02-04-2011, 12:23 PM
depends who you pay. We let Danny Briere walk but paid Thomas Vanek and Tim Connolly.

I am not defending the move but they had no choice but to resign Vanek after letting the other two walk. The PR disaster could have destroyed the team and ensured complete bottoming out.

SkateZilla
02-04-2011, 03:54 PM
We coulda Signed 2 or 3, Upper 20 Goal Scorers for 7 mil.