Gary Bettman was in Philadelphia yesterday and held a brief press conference prior to the Rangers – Flyers game on a myriad of subjects, such as the Islanders ownership issue, future NHL outdoor games and the travel situation to and from New York and Philly for this series. One of the other subjects that came up was the upper limit to next seasons salary cap, which Bettman gave an answer of,
“The system is designed to deal with fluctuations in the Canadian dollar because hockey related revenues, which is used to compute the salary cap, is done in US dollars. So if the Canadian dollar goes down, the cap isn’t as high. Don’t hold me to this, we’re somewhere in the $69 million to $70 million as a guess. We’re don’t have all the data. We don’t have all of the reports from the clubs yet. That would be a wild guess. It’s a ballpark guess.”
NHL executives had been previously running under the assumption of a salary cap upwards of $71 million for next season from this years’ 64.3 million, with info that came out of the Board of Governors meetings held back in December. Bettman went on to say:
“Revenues are strong. The Canadian dollar has an impact because we have seven clubs that are in their revenues using Canadian dollars. We have a national TV contract that’s in Canada in Canadian dollars.”
The new Canadian television contract worth $4.9 billion (US) over 12 years doesn’t take effect until next season and will, in all likelihood, have a positive effect on driving the upper limit of the salary cap well north of $70 million at the conclusion of the 2014-15 season and beyond.
Habs Eyes on the Prize has a more detailed breakdown on how the decline of the Canadian dollar impacts the salary cap here.
Gary Bettman quotes transcribed from Randy Miller’s piece at NJ.com