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Lites says cap report matches what he is hearingFriday, August 31, 2007 Dallas Stars president Jim Lites says the Toronto Globe and Mail report about a salary cap formula based on team-by-team revenues is basically what he has been hearing, and that he hopes the two sides can have a finalized deal in 30 days. "I know they have broken through in a bunch of
areas," Lites told the Fort Worth Star-Telegram. "I also know
the ultimate goal was to not spend more than 54 percent on
salaries. I think that has been accomplished." It's not clear how each team's salary floor and cap will be determined, but it will be based on some kind of formulated percentage of the team's revenues, according to the Globe and Mail. Based on next season's projected revenues the newspaper reported that the salary floor is expected to be $22-24 million and the salary cap will be $34-36 million. There would also be a luxury tax that would kick in at the midway point between the floor and the cap. When asked about whether the formula would give high revenue clubs like the Stars more to spend on payroll, Lites told the Star-Telegram: "Probably. I mean our cap would be higher. But if you're facing a tax, if it's in the 30s [in millions of dollars], it should be accomplishable." Lites said the numbers he was hearing were on a par with what the Globe and Mail reported. "I think the high was $35 million and the low was $22 million, with the mid-range being the place where a dollar-for-dollar tax started, and you could spend up to that, but there would be punishment if you spent more than that over a sustained period of time," Lites told the Star-Telegram. Meanwhile, the two sides are expected to resume negotiations today. Outside of the key issues of revenue sharing, arbitration, qualifying offers, free agency and the entry-level system, the two sides are said to be to working out agreements on how higher-payroll teams will get in line with the new cap system.
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