Increase in Salary Cap May Not Be As High As Previously Projected

Back in December, TSN reported that during the Board of Governors meetings, teams were advised that the upper limit of the salary cap would swell to $71.1 million next season from the current $64.3 million based on projected increases in hockey-related revenue. Gary Bettman told reporters at the time:

"These are preliminary estimates, it's in that range. And I said to the board there shouldn't be any issue or consternation, if that's the cap level, it's because the revenues have gone up. And that's a good thing."

However, there may be one thing Bettman and the NHL didn't take into account; the recent downtrend in the value of the Canadian dollar.

During the Rangers-Devils game on Sunday at Yankee Stadium, one of the CBC commentators (apologies, I didn't recognize the voice; it may have been former NYR goalie Glenn Healy) quipped about this very subject.

"One thing that will affect the cap though, is the dollar, the Canadian dollar at 90 cents because so much of the economics are from Canadian teams. You're not going to get the revenue you need. Even though we have these big magical games, the Canadian teams drive the bus in revenue. 90 cent dollar and (American) salary for your players' equates to the cap going down a little bit from the projections."

Elliotte Friedman in his "30 Thoughts" column released yesterday, elaborated further about how the decrease in the Canadian dollar will affect the salary cap next season.

6. I asked a couple of capologists what they think a 90-cent Canadian dollar (or lower) will do to next year's cap ceiling. Both said it's not insignificant. One predicted it could drop the total by $1 million, while the other said he ran a model that put it closer to $1.5 million. Something to keep an eye on.

With yesterday's news regarding Callahan and Girardi's contract situations this is probably the last thing Sather needs in hopes of re-signing his captain and top pairing defenseman to justifiable long term deals as the Rangers are probably going to need every last penny to get it done.

I don't believe the best recourse for the Rangers to free up cap space while staying competitive, is to start raffling off their UFA's for picks and prospects in hopes of those players will pay dividends in 2-3 years with Lundqvist pushing 35. I also wouldn't want to be the guy who would have to tell Lundqvist, who just signed the biggest contract a goalie has received in quite some time, that trading Girardi and Callahan for picks and prospects is in the best interest of the organization and would help him win a Cup sooner rather than later. Something tells me he wouldn't buy that premise.

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