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LSHA Salary Cap Formula


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#1 OFFLINE   **LS**

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Posted 11 February 2012 - 10:23 AM

Salary Cap

1. Each year the LSHA Cap ceiling and floor will be calculated via a salary cap formula. Once the trade deadline clock strikes midnight, the average cap of our 30 teams will be determined. Once the NHL announces it's next cap in the summer, we will calculate our inflation or deflation by using the percentage of inflation/deflation of the real world NHL's cap from the season prior to it. The ceiling will then be $6,500,000 above that calculation and then rounded to the nearest million dollars. The floor will then be $13,000,000 below the ceiling.

To give you all an idea on how this will work, currently there are $1,547,328,401 worth of salary cap among our 30 teams. The league average would be $51,577,613.

If we used last year's inflator/deflator percentage, we would determine that in 10/11 the NHL's cap ceilings were set at $59,400,000. In 11/12, the NHL's ceiling is set at $64,300,000. That is a rise of 1.08%.

$51,577,613 X 101.08% = $52,134,651

$52,134,651 + $6,500,000 = $58,634,651

Rounding off to the nearest million, we will see our cap ceiling lower from the current $60,000,000 to a max of $59,000,000. Thus setting our cap floor at $46,000,000.

This is just a rough idea of what we might be in for. The more teams that hover toward the floor of the cap, the greater the likelihood that the cap will drop next season. And obviously the more teams that hover toward the ceiling, the greater chance the cap will rise.

Once you all get your head around these numbers, also keep in mind that if the next CBA dramatically affects the cap in the NHL, it will also dramatically affect this formula.
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#2 OFFLINE   Imber

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Posted 11 February 2012 - 11:53 AM

Woah woah woah. This seems a far cry from the original rules. Didn't the original rules say we were going to mimic the actual salary cap? The only reason we weren't there this season was that I believe our rules were finalized before the real cap went up, or something along those lines. I've been making moves with the thought process that the cap would be at least 65 million next year. This seems like a random, dramatic change, unless I never read the rules closely enough.

Edit: Can you post the original rules in here?

This point has been edited by Imber: 11 February 2012 - 12:05 PM

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#3 OFFLINE   **LS**

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Posted 11 February 2012 - 12:08 PM

The original rules stated that we would have a cap and a floor to mimic the NHL's cap. But it was very vague as to how we would determine the cap figure, until I had a chance to monitor the parity in the league.
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#4 OFFLINE   Imber

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Posted 11 February 2012 - 12:17 PM

The original rules stated that we would have a cap and a floor to mimic the NHL's cap. But it was very vague as to how we would determine the cap figure, until I had a chance to monitor the parity in the league.


There's no possible way our cap ceiling can drop if the NHL's goes up. That just destroys any semblance of realism.

Because our cap doesn't count salary on the bench makes this a flawed system. People can stash salary on the bench at the end of the year, and drop the ceiling. Likewise, people could put all their salary into their lineup at the end of the year, and drive it up. It shouldn't be that easy to manipulate.

I understand some concern about parity, but that rule change doesn't work, especially not at this point through this season.
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#5 OFFLINE   **LS**

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Posted 11 February 2012 - 12:25 PM

There's no possible way our cap ceiling can drop if the NHL's goes up. That just destroys any semblance of realism.

Because our cap doesn't count salary on the bench makes this a flawed system. People can stash salary on the bench at the end of the year, and drop the ceiling. Likewise, people could put all their salary into their lineup at the end of the year, and drive it up. It shouldn't be that easy to manipulate.

I understand some concern about parity, but that rule change doesn't work, especially not at this point through this season.


Again, the league average calculation will take place at the moment the trade deadline freeze takes affect. This is seen as the time rosters are set for the home stretch.

Being just one of thirty, loading or thinning out your active roster in an attempt to manipulate the following cap, is up to you. But each individual roster isn't given much weight in these calculations. And most certainly doesn't give a good portion of the league near good enough odds to risk their playoff positioning.

I wouldn't worry too much about the cap decreasing on a regular basis, however. As this will be the only season where players wage increases won't have a say in the final product.
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#6 OFFLINE   Imber

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Posted 11 February 2012 - 12:27 PM

Again, the league average calculation will take place at the moment the trade deadline freeze takes affect. This is seen as the time rosters are set for the home stretch.

Being just one of thirty, loading or thinning out your active roster in an attempt to manipulate the following cap, is up to you. But each individual roster isn't given much weight in these calculations. And most certainly doesn't give a good portion of the league near good enough odds to risk their playoff positioning.

I wouldn't worry too much about the cap decreasing on a regular basis, however. As this will be the only season where players wage increases won't have a say in the final product.


I still think this is way too large a rule change to come into place during February of the season before. We did say we'd mimic the actual NHL cap, and this is certainly way off from that rule. Doing our own calculations, and potentially seeing a decrease in cap, while the NHL may increase, is not an option. If we were to change it this much, I don't see how it could take place until 2013.

I'll be curious to hear other thoughts though.
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#7 OFFLINE   **LS**

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Posted 11 February 2012 - 01:07 PM

I've decided to wait this long to put a formula in writing so that I had ample time to monitor the league and it's cap implications of the game.

Where the NHL's cap fails (in my opinion) and where this one succeeds, is that the final ceiling figure is tied to both the league average in cap usage and real cap inflation.

It makes little sense in our fantasy to tie our cap to real life revenues, given that the two have nothing in common. If the cap is set at $60 mill and the majority of owners are sporting a lineup that costs them under $50 mill, then we are unnecessarily raising the floor.

If in any given season, we see rebuilding teams over-saturate the league, creating a buyer's market, then we can expect the league average to decrease. This would force the cap ceiling teams to pay a premium. Inversely, if the majority of teams strive for points gains, creating a seller's market, we can expect the cap to rise and along with it the floor, forcing our rebuilding projects to scramble to add game ready cap. And that becomes the premium they would have to pay.

I don't personally see this as a radical rule change, given that the formula was never really formally addressed and we were all speculating what the cap situation might be next year. And even with this rule in place, we will continue to speculate until the trade freeze is in place, and until the next CBA is finalized and a determination of what next season's NHL cap figure will be set at.

Keep in mind that everyone still has unending contract lengths with their players and we each have 8 spots to fill up unlimited amounts of salary if need be.
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#8 OFFLINE   Imber

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Posted 11 February 2012 - 01:15 PM

Okay, I understand what you're saying, but my biggest issues are...

1) This is a pretty large change from the original course (IMO) - and it's too late to implement it for next season without screwing up some owners that were planning on a higher cap. I'm pretty sure I even asked you once if the cap would go up to where the NHL's was next year, and pretty much was confirmed that it would. All rule changes take place over a year after they're voted on in these leagues.

2) Shouldn't it have to be voted on? I appreciate that you came up with this formula, but I feel it should have to be approved by at least a majority to take place.

3) I still feel it is too manipulative, with salary on our bench being left out. For example, Simpson had Pronger on the bench before our Datsyuk deal because he was hurt, and that's a huge difference for his salary number. If we hadn't made that deal, I imagine he would've locked in with nearly 5 million on the bench.

But again, I'll be curious to get some other thoughts from owners.
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#9 OFFLINE   **LS**

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Posted 11 February 2012 - 01:28 PM

Here's an example to show you how insignificant Pronger is to the overall formula.

If Simpson called up Pronger and replaced him with a minimum wage player ($500,000) on the bench, the collective league cap would stand at $1,551,749,830. The league average would then be $51,724,994.

Multiply that by 101.08% and you get $52,283,624.

Add your $6,500,000 and round off to the nearest million and you get the same $59,000,000 cap ceiling.
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#10 OFFLINE   **LS**

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Posted 11 February 2012 - 01:30 PM

Also to add, the LSHA was going to differ from the LSHL from having mandatory majority votes to pass rules. It was meant for players that had faith in me to look after the best interest of the league, over the sum of it's parts.

I will always listen to arguments to get a better read on public opinon, but it will not guarantee that anything gets changed.
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#11 OFFLINE   kbooks

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Posted 11 February 2012 - 04:02 PM

Some random thoughts on this debate.


1. The LSHA is not a democracy and LS makes the rules. That has been made very clear from the start. LS decisions are final while we can offer LS advice in the end it is his call.

2. This year the NHL cap is $64,300,000 and he LSHA cap is $60,000,000

3. It seems reasonable that in our efforts to reflect what happens in the NHL that if the NHL Cap goes up next year to $65 then the LSHA cap should follow suit and go by the same percentage to $61,586,310 rounded off to $61 or $62 million.

4, If what LS is saying is that the current cap is higher than it should be as the LSHA only counts 19 players against the cap while the NHL counts 23 players and the current average cap in the LSHA is around $51m. I would suggest that the LSHA cap be frozen at the current level for next year unless the NHL cap goes down. If the NHL cap goes down then the LSHA cap should go down by at least the same amount.

5. I do understand that what LS is attempting to do is build in a relationship between the actual average cap in the NHL and the average cap in the LSHA. I think this is the correct correlation we should be working towards but if necessary it should be phased in to avoid a dramatic change especially a step down in one season to the next. If the formula correlating the actual NHL to the actual LSHA suggests a decrease in the cap. I would suggest a freeze at current levels to allow teams to adjust over time to a lower cap over time.

Hope that is of some help.
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#12 OFFLINE   Imber

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Posted 11 February 2012 - 04:27 PM

If the NHL's cap continues to go up, and player salaries skyrocket like they did this past summer, there's no comprehensible reason to drop our cap.
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#13 OFFLINE   Money

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Posted 11 February 2012 - 04:42 PM

I have to agree with Imber here. Not that I'm against using that formula to calculate the cap, but I think this late of notice is really not fair. While you mention that you are going to autocratically make decisions in the LSHA, even when you made those decisions in the LSHL, you at least gave everyone enough time to adjust their rosters accordingly (eg. we knew more than a year out when expansion was coming, etc.). Were this to be instituted for the 2013-14 season, I wouldn't have a problem with it.

1. The LSHA is not a democracy and LS makes the rules. That has been made very clear from the start. LS decisions are final while we can offer LS advice in the end it is his call.


I will always listen to arguments to get a better read on public opinon, but it will not guarantee that anything gets changed.


Kbooks, pretty sure that's what Imber (and now me) are doing here.
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#14 OFFLINE   Money

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Posted 11 February 2012 - 04:47 PM

If the NHL's cap continues to go up, and player salaries skyrocket like they did this past summer, there's no comprehensible reason to drop our cap.

The cap would go up if the NHL cap skyrocketed (as the LSHA cap goes up with the same percentage as the NHL cap).

For example, if the NHL cap jumped to $75m from $64.3 (16.6% increase), the LSHA cap would jump to $67m ($51.577m x 116.6% + $6.5m)
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#15 OFFLINE   Imber

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Posted 11 February 2012 - 05:12 PM

The cap would go up if the NHL cap skyrocketed (as the LSHA cap goes up with the same percentage as the NHL cap).

For example, if the NHL cap jumped to $75m from $64.3 (16.6% increase), the LSHA cap would jump to $67m ($51.577m x 116.6% + $6.5m)


Right, but if the NHL cap goes up at all (even a million) and ours goes down, I still don't get how that makes sense, seeing as we already started out 5 million below it.
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#16 OFFLINE   JoeyHurricane

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Posted 11 February 2012 - 05:27 PM

Meh. Our blood pressures and hairlines will all benefit from just letting the boss go as he sees fit. My input isn't asked on this issue. So cool and I'll prepare to adjust as needed.
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#17 OFFLINE   Deezy

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Posted 11 February 2012 - 06:33 PM

Right, but if the NHL cap goes up at all (even a million) and ours goes down, I still don't get how that makes sense, seeing as we already started out 5 million below it.


As Kbooks said, our rosters are based on 19 active players not 23. 12 F, 6 D, 1 G - so we should be below the real NHL cap since we have 4 less players.
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#18 OFFLINE   **LS**

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Posted 11 February 2012 - 06:34 PM

Does everyone understand that no matter what the formula was, nobody was going to know the official cap number until sometime this summer? Last year, the NHL and NHLPA announced it's cap hit for the 2011-12 season on June 23rd 2011, giving it's GMs just over 4 months to prepare for the 2011-12 schedule.

By no means did I ever mean to imply that our salary cap ceiling and floor would mirror the NHL's dollar for dollar. That was never in the cards given that our cap hit only affects a 19 man roster. I apologize if I worded the rules poorly which may have suggested as such.

This salary cap formula is not a rule change. It is simply a definition to a rule that hasn't been addressed thus far. It is now being addressed just under 8 months prior to next season, though it is still just a heads up of what we might expect. And all of our GMs will have all offseason to address their cap needs given this new information, however any assumptions made on the next cap hit prior to the time that it is official, is solely the responsible of each individual GM.

Going into another CBA drawing board this summer and surmising that you had 65 million to play with next season, is an unfounded assumption, no matter what the formula was going to be. So I don't personally feel any responsibility in blindsiding anyone.

There is a long way to go yet to have your team in cap compliance for next season. And there is still plenty of time before any of us know exactly what that final figure is going to be. This is definitely not something anyone needs to worry about prior to the trade deadline freeze on February 28th.
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#19 OFFLINE   Twiggy

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Posted 11 February 2012 - 06:56 PM

I don't really have a problem with it. We're talking a $1mil drop, which is essentially the price of a 4th liner?

Also worth pointing out, (Assuming page is up-to-date) the only team this actually affects negatively is Deezy's. He's the only team over the $59m cap. Imber is very close to it ($31k), but everyone else is actually pretty comfortably under (By comfortably I mean a few mil).

I think the upside to it dropping a million though is it might creat a little more trade short term on the lower end of the scale. Most teams in the bottom rungs can't afford to move talent at the moment
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#20 OFFLINE   **LS**

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Posted 11 February 2012 - 07:00 PM

I don't really have a problem with it. We're talking a $1mil drop, which is essentially the price of a 4th liner?

Also worth pointing out, (Assuming page is up-to-date) the only team this actually affects negatively is Deezy's. He's the only team over the $59m cap. Imber is very close to it ($31k), but everyone else is actually pretty comfortably under (By comfortably I mean a few mil).

I think the upside to it dropping a million though is it might creat a little more trade short term on the lower end of the scale. Most teams in the bottom rungs can't afford to move talent at the moment


Again, don't take the $59M as gospel. I only performed the calculation to allow you all to understand it.

The cap could rise, stay the same, or decrease even more. Most of it depends on the CBA this summer.
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