Are the Devils on a budget?/That isn't the Cap ceiling?

[MCDevils]

We've never had to think about this before because we've always been right at the cap since the lockout, but it appears that the Devils might be on a budget that's not the actual league Cap.

From today's article in the NYP:

Lou:

New Jersey has until Wednesday to further reduce its cap liability with buyouts, having settled its last arbitration case of the summer. The Devils will have some $2.5 million in cap space remaining with their deals are done.

We'll look [at buyouts]." Lamoriello said. "We do not have to, but we will do what's right for the team. We have budgets that we have to keep to."

Well that's news and will only further add speculation to why Parise is only signed to 1 year deal.

As I've said tens of times, the Devils don't have unlimited resources like some teams, and are trying to sell a pretty big chunk to a new owner. Also, note that JVB was reported to not have the assets to buy the rest of the team himself, so it would appear that the Devils aren't willing to spend to the cap as an organization.

I've said this before but Kovy is going to be making $5M additional next year, despite his reasonable cap hit, and if this team is actually on a budget, maybe they really do need to wait until more money (AKA Colin White) is off the books.

 

[devs30rko]

do I think its something that's going to hinder us long term? Not really money wise this organization actually seems to be headed in a profitable direction but thank you!
Someone else realizes well have an additional 12 million next year bot in cap room and budget

 

[MCDevils]

do I think its something that's going to hinder us long term? Not really money wise this organization actually seems to be headed in a profitable direction but thank you!
Someone else realizes well have an additional 12 million next year bot in cap room and budget

Well the Devils barely made a profit last year, and they're already going to be spending more money b/c of the cap increase, and next season they're going to have to add $5M from Kovy and if they wanted to front load Parise let's say a 6.5M cap hit with an actual amount of $9M. That's a $4M real dollar increase.

That means that they would be spending $8M more in real dollar from those two alone versus last year. That takes the Devils from a few million in the black to deep red..

 

[devs30rko]

Thank god our attendance is going up. Increasing attendance plus playoffs and the shared revenue system should, theoretically, keep us in the profit zones or at least break even. That's on devils alone. The profits they get from events at pry probably mean the world

 

[MCDevils]

Our attendance has fallen the last three seasons.

 

[linebackeru]

Isn't every team on a budget of some sort?? The cap kinda forces you to be on a budget regardless of how much $$$ you make.

 

[MCDevils]

Isn't every team on a budget of some sort?? The cap kinda forces you to be on a budget regardless of how much $$$ you make.

Yeah, but when was the last time you heard Lou say we can't spend to the cap?

 

[linebackeru]

Yeah, but when was the last time you heard Lou say we can't spend to the cap?

Not like they are spending 10 mil under. He has some wiggle room to make any potential deal now if we need to.

 

[TheRobotDevil]

to be honest I think whitebeard is A far bigger asset to the team than salvadore and fraser if anyone is going i would prefer it be one or both of the later two.

 

[devs30rko]

I'm referring to the new season ticket plans that are SUPPOSEDLY sold

 

[TheRobotDevil]

I've read the same thing as rko if what we are reading is true I expect a decent sized bump in those attendance numbers.

 

[MCDevils]

I've read the same thing as rko if what we are reading is true I expect a decent sized bump in those attendance numbers.

I'm happy about it don't get me wrong, BUT those tickets were $22 each, so assuming they sold 2000 for 41 games:
22 x 2000 x 41= $1.8M. Assuming they all spend twice that to include parking and concessions ( a big, big stretch) that's still only $3.6M That doesn't even cover all of Kovy's raise, and they still need to sell the other 15% of tickets that STH's still haven't renewed.

I don't like being all doom and gloom, but the finances of this team aren't all roses ATM.

NOTE: I THINK IT'S AWESOME THAT THEY'RE DOING THIS. IF I DIDN'T NEED TO WORK 3 NIGHT'S PER WEEK I WOULD HAVE SIGNED UP FOR IT.