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charlz · 06-27-2005, 07:11 AM

It looks like the new cap in the NHL will be 38 Million.

Which means MLSE (owner of the Leafs and Raptors) will have to lop 12 million++ off their hockey payroll.

With the increase in the NBA Payroll and the freed up cash the Raptors are set to be big spenders (remain in the top 10 in the NBA for sure).

The Raps were # 7 in spending a few summers back and all the puck heads called talk shows outraged at how "...MLSE was giving the Raps more money then the leafs..." Well they can call and b1tch all they want now because the Leafs simply can not be harassed in to high price talent... the rules prevent them.

With the influx of Draft picks & Rose, Murray, Williams' off the books in the next few years the Raps should be poised to be a regularilly competative team like Indiana.

Thoughts?

butr · 06-27-2005, 07:46 AM

They compete independent of one another.

MentalPowerHouse · 06-27-2005, 07:53 AM

Yes I don't think it matters at all. They will keep spending around 40-50 mil, and if we finally get a good team they will spend an extra 10-15 to keep it around. They already proved that when they resigned JWD, Davis, Alvin, and VC.

charlz · 06-27-2005, 08:17 AM

Quote:

Originally Posted by blowuptheraptors

They compete independent of one another.

Well some have said that they took budget away from the Raps after the Hakeem signing and gave it to the Leads - who then went and increased their payroll by roughly 9 mill (with Nolan Belfor etc...)

And it is a misconception that they are not related - all the money earned by both goes in to the single pot of MLSE - furhtermore they have many cross over employees who work for both (Peddie) for example who draw their money from the streamlined revenue. (not to mention the teachers pension group who again draws profits from said "pot".

They market and spend differently but in the end the money is compiled and realocated by the same board of governers.

**madman** · 06-27-2005, 12:38 PM

it makes sense for the MLSE to put more money in the leafs instead of the Raptors (as much as it hurts to say) if more people are going to watch the leafs then the Raps then they are going to try to make as much money as they can

Junkyard Dog13 · 06-27-2005, 06:27 PM

38 MILL NHL cAP THAT SUCKS IT SHOULD BE 45 MILL.

LEAFS CUTS

NOLAN 6 MILL
LEETCH 5 MILL
KIDD 1 MILL
___________
12 MILL

NO BIG FA ADDITIONS

D CARLO COLOVOLKIO PROMOTED TO FULL TIME STARTER
C KYLE WELLWOOD PROMOTED TO FULL TIME STARTER
W/C ALEXANDER STEEN PROMOTED TO FULL TIME STARTER

butr · 06-27-2005, 07:16 PM

Quote:

Originally Posted by charlz

Well some have said that they took budget away from the Raps after the Hakeem signing and gave it to the Leads - who then went and increased their payroll by roughly 9 mill (with Nolan Belfor etc...)

And it is a misconception that they are not related - all the money earned by both goes in to the single pot of MLSE - furhtermore they have many cross over employees who work for both (Peddie) for example who draw their money from the streamlined revenue. (not to mention the teachers pension group who again draws profits from said "pot".

They market and spend differently but in the end the money is compiled and realocated by the same board of governers.

Nah, they are wrong. This team was over the luxury tax in the top 1/3rd or spending. The Leafs make a crapload, the Raps make a crapload. They keep them separate. Raps have plenty of their own revenue.

Each team has their own budget set for them. The profits are projected for each before each season.

On either side, Leafs more than Raps, they will just increase ticket prices. To make up for increased spending.

**Crossword** · 06-27-2005, 09:05 PM

BAHAHAHAHA!!!!!!! The NHL cap 38 million? LMAO! Take that you stupid greedy hockey players... they wanted 50, lost the season, and they get 38. GOOD.

The Mad Viking · 06-28-2005, 10:22 AM

Quote:

Originally Posted by madman

it makes sense for the MLSE to put more money in the leafs instead of the Raptors (as much as it hurts to say) if more people are going to watch the leafs then the Raps then they are going to try to make as much money as they can

Actually, the Leafs sell out no matter what, whereas the Raptors sales relate to team performance.

It is neither "one pot of revenue" nor is it "independent".

Each team does set a budget each year, and there is of course an overall target for MLSE which relates to the sums of each budget.

The Leafs will have significantly lower expenses. They will lose about $3 mil in US TV revenue, compared to 2003-04, but the rest of their revenue will likely be the same. So the Leafs budget will show more profit. So the Raps will not need to show as much for the same year. Which is easily justified by the idea of spending some money now to increase the team performance, thus increasing ticket and merch revenues.

The Mad Viking · 06-28-2005, 10:23 AM

Oh, and charlz - good observation. I hadn't thought of that.

MentalPowerHouse · 06-28-2005, 10:30 AM

Quote:

Originally Posted by The Mad Viking

The Leafs will have significantly lower expenses. They will lose about $3 mil in US TV revenue, compared to 2003-04, but the rest of their revenue will likely be the same. So the Leafs budget will show more profit. So the Raps will not need to show as much for the same year.

I don't think its so clear cut. They will probably sell out every game still, but they might lose revenues in other places atleast for a while as advertising and merchandising sales and things like that might take a while to recover to the same levels.

Although who knows, maybe people will be so happy they are back they'll spend even more on the leafs?

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