NHL sides reportedly agree on salary cap

[derby378]

The two sides in the NHL lockout have agreed on a salary-cap system, eliminating the biggest stumbling block to the resumption of play next season, a Canadian newspaper reported on its website Wednesday.

Although details of the proposed agreement were not released Wednesday, the Globe and Mail reported that a source close to the owners said there would be a team-by-team salary cap, based on a percentage of the revenue of each franchise.

The league has previously demanded that the cap be 54 percent of a team’s revenue.

However, this does not mean that an overall deal on the lockout is imminent. Negotiators for the players and owners are now working on other issues such as salary arbitration and free agency, according to GlobeandMail.com.

http://www.msnbc.msn.com/id/8066397/

[getmeouttahere]

1. Well, they finally got the inevitable done....

the salary cap was a necessity for the NHL, no matter how foolish the spending of the owners was in recent years. The average NHL salary was exactly the same as the NFL, according to a report in Forbes magazine a few years ago, and it doesn't take an economist to figure out that doesn't make sense, especially when you take into account that the same report indicated that the NFL's revenue is at least 10 times that of the NHL. In fact, I think you could take just the share of the NFL TV contract of just 5 teams and it would equal the entire revenue of the NHL.

[NEDem]

2. I hope this is true

Its about damn time.

[jayfish]

3. I'm Not A Huge Hockey Fan,...

but this doesn't sound like a great way to go. Shouldn't the cap have an inverse relationship to team revenue? If this deal is real, the big-market teams stand to dominate the sport. Think NY Yankees.

Jay