NHL's bottom line facing short-term blow. MORE:
The NHL was a $2.3 billion business with a $39 million salary cap coming out of the lockout that wiped out the 2004-05 season. It broke the $5 billion mark in 2018-19, with an $81.5 million cap this past season.
Players are bracing for lost salaries by continuing to defer whether to receive their final paychecks. They are also in jeopardy of losing the portion of pay put aside in an escrow account, which rolls over to the owners should revenue fall short of projections; players have lost upward of 10% of their pay to escrow over the past seven-plus seasons and it is a major issue in upcoming labour talks.
Bettman recently said gate receipts, while significant, don’t make up a majority of league revenue. But gate revenue is key to the NHL because it lags behind its counterparts in television dollars. That’s not the case today, with the Canadian dollar at the 75-cent range. Teams north of the border project losing $400,000 each time the Canadian dollar drops a penny, putting a strain on their ability to compete for or retain high-priced talent.
Issues arising from the pandemic have slowed negotiations on a new collective bargaining agreement, with the current deal expiring in September 2022.
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