The Real Reason Why We Have a Salary Cap
Since the 2005 lockout, the NHL has had a cap in effect that dictates a minimum and a maximum that teams can spend on salary for their players. Teams can pay an individual player whatever they see fit, but must remain within the confines of the cap when it comes to the entire roster, meaning the more you pay some players, the less money you have for others. While the NHL insists the cap is about ensuring parity between teams in terms of competitiveness, one prominent player agent doesn't buy it.
"Just a reminder that the reason we have salary caps is not 'cost certainty', 'competitive balance' or 'it's great for the fans'," said Allan Walsh. "The salary cap allows owners to pay players less than their true market value by restricting the available dollars within a system."
Walsh, who represents players like Marc-Andre Fleury, Max Pacioretty, Jonathan Huberdeau, Jonathan Drouin and several others, wasn't done there.
"NHL Franchise values have risen exponentially over the last 15 years. In the intervening period between Vegas ($500M) and Seattle ($650M), values continue skyrocketing. Yet the salaries of top NHL players today are the same as they were in 2001," he continued.
"The most amazing aspect of all this, the success of multi-billionaires in convincing fans (and some media) that players are greedy in wanting free markets for their services," said Walsh. "These capitalist barons believe in free enterprise for themselves and salary caps for their employees."
Like it or not, Walsh does raise some interesting points. Yes, hockey players get paid well. The minimum salary ($700,000) can make someone a millionaire within two seasons. That said, it is peanuts compared to what players make in Major League Baseball where there's no cap whatsoever. The NHL would never be able to pay players what MLB stars make due to the difference in revenue, but it's a safe bet NHL stars would be getting more without the cap. The very first thing that happened when the NHL lost revenue due to COVID-19 was to ensure the salary cap stayed flat for at least three seasons. It may last even longer depending on what happens over the next couple of years.
The NFL is the only other major sports league with a "hard" cap like the NHL. Patrick Mahomes makes an average of $45 million per season, more than half the cap of an entire NHL team.
