There will deservedly be a lot of coverage over the course of the next six weeks involving all sorts of trade rumors and possibilities as general managers work the phones in an effort to either position their team for a playoff run or plan for the future. All of that coverage is obviously merited, but there is a story getting a bit less air time that will play a major role in deciding who goes where in February and July: the salary cap.
The salary cap for the 2016-17 season has yet to be set, and the Canadian dollar’s dropping value has many around the league concerned; the Loonie is currently below 70 cents on the dollar for the first time in over ten years. This is bad news for a league with seven Canadian franchises that account for roughly 30 to 35 percent of hockey related revenue, according to The Globe and Mail. According to Steven Burtch of SportsNet, if the Canadian dollar remained at around 69 cents the salary cap would drop around $3.9 million next year, and that includes the escalator. Continue reading