While this is unconfirmed for now, a major rumor broke late last night that the NHL has cancelled escrow payments from the players. Per RG Media, again grain of salt required, the NHL will no longer require players to pay into escrow, citing far better hockey revenue growth in the post pandemic age than expected. This means the NHL salary cap could increase dramatically over the next few years.
For those unfamiliar, the negotiated CBA terms dictate a 50/50 split of revenues between the owners and the players. During the pandemic, this was renegotiated to include a 5% cap increase that can be triggered by the players. To make up the 50% shortfall to the owners, the players paid into an escrow account that would be distributed to the owners to make up the difference.
It appears that post pandemic, revenue is far higher than anticipated. This means the 50/50 split has actually swung in favor of the owners, indicating the escrow payments are no longer required and the standard 5% cap ceiling increase may actually be too low heading into the 2025-2026 season.
Initial rumors state that the salary cap could go as high as $97 million next season, a 12.5% increase on the current $88 million ceiling. For those worried about Igor Shesterkin’s contract, his cap percentage drops dramatically over time if this turns out to be true.
Reports are still unconfirmed, but it is worth noting that of all the mainstream media reporters, only two (Rick Westhead, Katie Strang) do actual investigative reporting on the NHL. Most NHL media reports are controlled by the NHL PR department and most messages are controlled. So until something is confirmed–and now these initial reports are coming out we should expect something announced–we call them rumors.
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