Report: NHL Revenue Climbing

Chris Botta of Sports Business Journal tweeted on Monday morning that sources have put dollar amounts onto estimates regarding the ever-increasing revenues being enjoyed by the NHL.

Botta reports revenues NHL revenues will be around $3.7 billion this year, and could reach $4 billion next year.

James Mirtle of the Globe and Mail subsequently tweeted that these revenue increases should make reasonable cap increase expectations around $6 million over each of the next two years.

These estimates should help the Blackhawks as they look ahead to the new deals of Jonathan Toews, Patrick Kane and Brandon Saad hitting the books for the 2015-16 season.

18 thoughts on “Report: NHL Revenue Climbing

  1. Skip, $12.25MM per year each, wow!! Who knows, maybe you are right, but if that is the case, I am not sure T & K can remain teammates anymore. I think we are just gonna have to wait and see.

    One part of me thinks they should go for the money. (Especiall Toews. His career will be fewer years than Kane’s) Another part of me asks, If we could only keep one of them, who would that be??

    That said, I am guessing about $9MM each for the CBA max. (How many years can a player sign for??

  2. Parise & Suter signed 13-year, $98M deals BEFORE the new CBA capped contracts at 8 seasons. There are still only 9 players in the NHL w/ a cap hit over $8M, and Ovechkin is still the benchmark at $9.538M. Pittsburgh gave Malkin 8 x $9.5M, and I think that’s the neighborhood Toews & Kane will be in.

    My guess is 8 years, $80M ($10M per) for 19 & 88.

  3. I believe the formula for the salary cap is HRR (Hockey Related Revenue) times 50% (players portion) divided by 30 (number of teams) = mid point, where the salary cap is $10M above mid point and the salary floor is $10M below the mid point.

    ($3.7B x 50%) = ($1.85B / 30) = ($61.6M + $10M) = $71.6M 2014/15 Salary Cap.

    ($4.0B x 50%) = ($2.0B / 30) = ( $66.6M + $10M) = $76.6M 2015/16 Salary Cap.

    I’m not sure how the Canadian Dollar vs US Dollar affects those numbers.

  4. Logical Tab……
    Let’s just say the pundits are correct and the Cap is $76mm in 15/16, assuming no changes to the long term roster and 19 & 88 are at $10mm ea.

    The Hawks will have $62mm tied up in 12 players. Let’s say Smith gets $2mm and Raanta gets $1mm this summer, that will leave about $11mm for the remaining 6 to 8 roster spots. Of those spots, Kruger, Oduya and Leddy will need to be resigned or replaced.

    Lots of teams will go through a lot of changes as the Star Power players demand bigger paychecks. The business of hockey is is more strategic than almost any professional sports.

  5. Mike – cross Oduya off your list of guys that have to fit in 2015-16. Also, there’s a lot of time between now and Oct. 2015, but there’s a chance that one of Danault/Nordstrom replace Kruger at some point down the road as well.

  6. Oh yes, I know, that was all hypothetical and will change alot in the next 16-18 months. I think Oduya is probably our most trade-able player. Reasonable salary and worth every penny for a team with the need. His time with the Hawks could be over already.

    I simply look with fascination at the player moves that SB is going to have to deal with over the next 2 summers. Although the Cap is unpopular with many fans, I believe it is a big contributor to the current financial success the NHL is now enjoying. I was worried about how the Cap might entice more players to jump to the KHL, but those fears have pretty much gone away for now.

  7. I actually feel now is the best time to get to Kane and Toews for their new contracts. They are going to command a lot of money and probably become the highest paid players in the game, but I am assuming that the cap will continue to rise. Their deals now may be steals at the end of their contracts. Additionally, what a great time for the Blackhawks to lock these players up long term. Toews is still just 26 and Kane 25. They are the two best players on the Hawks and I would have to think some of the best players in the game. They actually deserve the money they are going to get versus some other players in the league.

    Besides a)making the playoffs and b) winning in the playoffs, the cap game is one of my favorites to follow as a Hawks fan. I continuously shake my head at a number of other teams who do not play the game as well as the Hawks do.

  8. Attn: The Hawks NEED scores yes? Look at the Kings they score 4 5 6 goals in the Playoffs….. Hawks score about 2 or 3
    How do they GET scorers???

  9. Good news. If Tazer and Kaner do get 10m, having the cap at 76 not 73 in ’16 could help keep Seabs and Sharpy until there 35ish.

    Better not be fools gold, teams overpay, then cap is still 73 that yr. Then that guy will be in the witness protection program.

  10. Don’t worry, bowman has it all under control. Since the cap will increase after next summer as well, he can negotiate extension w/ versteeg as of July 1, 2015. And by the way, since Brower wasn’t worthy of regular shift 4 playoffs ago, bowman can steal him back for for versteeg and bollig, throw in oduya and 2 draft picks (thats actually a good idea if caps GM on lots of rx) Bowman will distract caps GM w/ analytics also.

  11. Any chance Kane and Toews take a modest home team discount because they are competitors and want to help keep the cap management reasonable?

    If I were in their skates, given how I’d be cleaning up with endorsements, would know that my future in the city would be rock solid, and the desire to win, I’d sign for under market value to increase the chances of championship after championship.

    Am I crazy?

  12. Yeah Morgz, in terms of lifestyle, the difference between $8M/yr and $10M/yr is nothing. If it’s me, the priority is championships and legacy – what money can’t buy. So I’d go for under market value, but with a shorter term contract. That way, if Bowman can’t deliver serious contenders year-in year-out, my option to leave comes sooner. But that’s just me, and I won’t speak poorly of people whose priority is money instead.

    Given that: 1) there is a precedent in home team discounts in Chicago (Hammer and Bickell), 2) the organization treats the players very well, 3) the fan support, and 4) the culture of winning, I wouldn’t be surprised if Toews and Kane sign for 8M/yr. But I think Tab’s market estimate of 10M/yr is about right.

  13. Hoping they sign for $8.75M each… will give Hawks another $2.5M to dole out for remaining players… keep 16

    Bad news is these guys have some HIGH mileage on them due to all of their past success… which means they may “peak” sooner than later… good news is- hitting (at least cheap shots- should trend down)… but when you are a stud- you are a stud!!!

  14. I think we would all like hometown discounts, but if any two players have actually earned their money it is Toews and Kane. I’m sure Bowman will try and point to Anaheim. He may try to say they are handcuffed by Getzlaf and Perry, but then Kane and Toews can point to their own performance in the post season. It is going to be 9.5 million a year or higher. Again, this is a lot of money now, but in 3-4 years this won’t be as such a high percentage of the cap.

    Additionally, rich people are going bat pooh crazy. Some of these NHL teams that will soon be up for or currently for sale are going to fetch some crazy money. Just look at the NBA. Obviously these are two different sports with different fan bases, but if Milwaukee fetched over 500 million for their team and the Clippers got 2 billion this money will come to the NHL because rich people like to be part of the club. While some relocation may be involved, I really see the cap going up for the short to medium term.

  15. I have no problem with 19 and 88 getting 80 mil each over 8 years as suggested. Makes them both Hawks until they are 33 – 34 years old. They have earned it. That said, I agree that their hometown discount (if any) would be due to big market endorsements. Hell, Winnipeg could pay Toews $15mm a year and Toews would be losing money.

    Clippers for $2B is ridiculous. It makes the Hawks estimated worth of $500MM seem small by comparison. Peter, I don’t think the NHL will ever match the popularity of a game that EVERY child grows up playing.

  16. Mike, agreed. My general point was that I believe NHL franchise sales prices will increase…but not to where the NBA is.

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