Concerning NHL financial news, and how it relates to LA's cap - LA Kings Insider

Nick Nickson and I covered the topic frequently during first intermission Insider Reports, and if you haven’t been following the weakened Canadian dollar’s impact on the NHL closely, you should be. There’s the potential that it will have a significant influence on the salary cap and greatly affect the teams that operate right under the cap (see: the Los Angeles Kings, amongst others).

The most recent alarming news came via David Shoalts of The Globe and Mail, who after speaking with an anonymous NHL Governor, reported that because of the currency hit due to the floundering Canadian dollar, the league will lose roughly $73.61 million dollars off the first year of the 12-year, $5.23-billion Canadian broadcast deal signed with Rogers Media in November, 2013.

Because of the struggling dollar, players are paying a greater share of their revenues into escrow. It is now very possible that the players do not vote for a five percent salary cap escalator – an option protected by the CBA – to limit escrow payments.

“If the players do not exercise the escalator, as is now expected, next season’s salary cap would be $68.1-million (U.S.) based on the NHL’s projections in March, which counted on the Canadian dollar staying at 80 cents,” Shoalts wrote.

As reported both on radio and on LAKI, a decision by the players not to bump the salary cap by five percent would have a major effect on the Kings’ financial flexibility. Based partially on information that was available when operated, the Kings have roughly $64.15 million allotted to 17 players for the 2015-16 season, a figure that includes Slava Voynov’s contract (Los Angeles would have roughly $59.98M spent on players if Voynov’s contract is not included). By these figures, the Kings would have roughly to $3.95M to $8.12M to spend on up to six players who open the season in L.A. (or seven, if Voynov does not return), without shuttling personnel already under contract, should next year’s salary cap end up at $68.1M. Tyler Toffoli, Martin Jones, Andy Andreoff and Nick Shore are restricted free agents, while Andrej Sekera, Jamie McBain, Justin Williams and Jarret Stoll are unrestricted free agents. Los Angeles is also eligible to sign top center Anze Kopitar to a contract extension beginning on July 1, though the new contract would not begin until the 2016-17 season.

More from Shoalts:

A major loss on the Canadian TV deal for 2014-2015 will have an impact on the salary cap, currently $69-million (U.S.) per team this season. The cap is based on the league’s total hockey-related revenue (HRR), so it’s difficult to estimate the specific effect of the Rogers deal, but based on the league’s own calculations, it could result in a $1.3-million (U.S.) drop per team in the cap for next season.

That is less than a 2-per-cent drop, but it makes a big difference to teams operating close to the cap. For example, last October, Peter Chiarelli, then the general manager of the Boston Bruins, traded defenceman Johnny Boychuk and his $3.37-million salary for draft picks on the eve of the season to create some much-needed cap flexibility. The loss of the veteran top-four defenceman weakened the Bruins, who just missed the playoffs, and Chiarelli was dismissed last week.

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Adrian Kempe

#9 | 6′ 2″ | 195 lb | Age: 21

Born: September 13, 1996
Birthplace: Kramfors, SWE
Position: LW
Handedness: Left


Kempe was selected by the Kings in the first round (29th overall) in the 2014 NHL Draft.

Alex Iafallo

#19 | 6′ | 185 lb | Age: 23

Born: December 21, 1993
Birthplace: Eden, NY, USA
Position: C
Handedness: Left


Iafallo was signed by the Kings as an unrestricted free agent on April 18, 2017.

Anze Kopitar

#11 | 6′ 3″ | 224 lb | Age: 29

Born: August 24, 1987
Birthplace: Jesenice, SVN
Position: C
Handedness: Left


As the 11th overall pick in the 2005 NHL Entry Draft, Kopitar became the first Slovenian to play in the NHL. Kopitar has spent his entire NHL career with the Kings, and following the 2015–16 season, was named the Kings’ captain. Noted for both his offensive and defensive play, Kopitar was awarded the Frank J. Selke Trophy as the best defensive forward in the NHL in 2016.

Drew Doughty

#8 | 6′ 1″ | 195 lb | Age: 26

Born: December 8, 1989
Birthplace: London, ON, CAN
Position: D
Handedness: Right


Bio: Doughty is a Canadian defenceman who was selected second overall by the Kings in the 2008 Draft. Doughty made his NHL debut in 2008 as an 18-year-old and was named to the All-Rookie Team. He is a two-time Stanley Cup champion with the Kings, a two-time Olympic gold medallist with the Canadian national team, and a Norris Trophy finalist.

Jeff Carter

#77 | 6′ 4″ | 215 lb | Age: 31

Born: January 1, 1985
Birthplace: London, ON, CAN
Position: C
Handedness: Right


Carter began his hockey career playing in the Ontario Hockey League in Canada before joining the AHL and playing for the Philadelphia Flyers. He was then traded to the Colombus Blue jackets before joining the LA Kings in 2012, where he has since won two Stanley Cups with the Kings.

Jonathan Quick

#32 | 6′ 1″ | 218 lb | Age: 30

Born: January 21, 1986
Birthplace: Milford, CT, USA
Position: G
Handedness: Left


Bio: Quick is the current goaltender for the LA Kings and was selected by Los Angeles at the 2005 NHL Entry Draft. Previously, Quick was a silver medalist with USA at the 2010 Winter Olympics. He’s won two Stanley Cup championships with the Kings, along with being the most recent goaltender to be awarded the Conn Smythe Trophy as the Most Valuable Player (MVP) of the 2012 Stanley Cup playoffs.