Salary Cap Analysis

[CrazyCanuck]

Originally Posted by lifetimeskin

Schneed/Canuk,

I am a little confused, we keep talking about this 30% rule. If there is no extension of the CBA, and NO salary cap next year, what does it matter? Couldn't we have a payroll of $200M without a salary cap?

You are correct that with no salary cap our payroll could be as high as we want. However this no-cap environment would only exist in 2007.

The 30% rule has more to do with our cap situation in 2006. The Skins are currently like $20 million over the 2006 cap. We can save about $15 million off our 2006 cap by restructuring a bunch of roster bonuses due to key players. By restructuring we can push a bunch of money to 2007 and subsequent years. Unfortunately the 30% rule would prevent us from doing so, and we'd lose all these potential savings.

So without a new CBA it's gonna be really hard for the Skins to keep their core intact, and make any new free agent signings basically impossible.