New CBA Details
Here’s a look at some preliminary details of the tentative NHL-NHLPA collective bargaining agreement, according to CapGeek.com sources. We’ve selected the details most relevant to CapGeek.com’s numbers and estimates.
UPPER LIMIT (lower limit/midpoint/upper limit)
- 2012-13: $44M/$52M/$60M *
- 2013-14: $44M/$54.15M/$64.3M
The lower limit must be reached without performance bonuses.
* transition rules permit teams to spend up to $70.2M
LINK: Article by James Mirtle of the Globe and Mail »
BUYOUTS
During the ordinary course buyout periods in June 2013 and June 2014, teams will be permitted two compliance buyouts. Compliance buyouts follow the same formula as ordinary-course buyouts — either 1/3 or 2/3 of actual salary depending on age — but do not count against the cap.
The NHL allowed teams to execute one of their two compliance buyout options prior to the 2012-13 season on players with cap hits of more than $3 million. Two teams exercised the option: the Montreal Canadiens on Scott Gomez and the New York Rangers on Wade Redden. The players received full pay and counted at their full cap hit for 2012-13, after which the compliance buyout payments kick in.
For one season following a compliance buyout, the player is prohibited from rejoining the team that bought him out.
LINK: CapGeek FAQ on how buyouts work »
MINIMUM NHL SALARY
- 2012-13: $525,000
- 2013-14: $550,000
- 2014-15: $550,000
- 2015-16: $575,000
- 2016-17: $575,000
- 2017-18: $650,000
- 2018-19: $650,000
- 2019-20: $700,000
- 2020-21: $700,000
- 2021-22: $750,000
BURIED CONTRACTS (Wade Redden Rule)
Money paid to players outside of the NHL counts against the cap.
A one-way contract counts against the cap as follows:
cap hit – [ minimum salary + $375,000 ]
Example: If Wade Redden plays in the minors in 2012-13, he counts as follows.
$6.5M – [ $525,000 + $375,000 ] = $5.6M
A two-way contract counts as follows:
minor-league salary – [ minimum salary + $375,000 ]
Example: Player A’s two-way contract pays $3M/$1M in 2012-13 and counts as follows in the minors.
$1M – [ $525,000 + $375,000 ] = $100,000
REENTRY WAIVERS
Reentry waivers have been eliminated in the new CBA.
LONG-TERM INJURED RESERVE
Long-term injured reserve remains unchanged in the new CBA.
THE 35-PLUS RULE
The 35-plus rule remains unchanged in the new CBA.
LINK: CapGeek FAQ explaining the 35-plus rule »
PERFORMANCE BONUS CUSHION
The performance bonus cushion applies in every year of the CBA.
FREE AGENCY
Group 3 unrestricted free agency remains unchanged and begins on July 1 each year. UFAs may meet and interview with potential new clubs from the day after the entry draft (June 25 at the latest) until June 30.
CONTRACT LIMITS
Maximum contract length is seven years, but extends to eight if a club is re-signing its own player. The eight-year re-signing option expires for UFAs with the opening of free agency on July 1.
CONTRACT VARIABILITY
Front-loaded contracts where the average of salary plus bonuses over the first half of the contract exceeds the cap hit, variability rules apply. Year-to-year variability is limited to 35 per cent of the first-year compensation. If a player earns $10M in Year 1, the contract cannot subsequently increase/decrease by more than $3.5M from year to year. Meanwhile, the lowest year’s compensation cannot be less than 50 per cent of the highest year’s compensation. If a player earns $10M in his highest year, he can never earn less than $5M any other year.
The old 100 per cent rule applies to any other multi-year contract.
LINK: CapGeek FAQ on the 100 per cent rule »
CAP ADVANTAGE RECAPTURE (Roberto Luongo Rule)
Teams receiving a “cap advantage” from long-term contracts — defined as seven years or more for contracts signed prior to the January 2013 CBA — will be penalized in the event the player retires or “defects” from the NHL before the contract expires. A team receives a “cap advantage” when the player’s actual salary exceeds his cap hit in a given year.
Following retirement/defection, the “advantage” will be “recaptured” and charged against the club’s cap in equal amounts each year until the contract expires. This penalty applies to any team that received a cap advantage from the contract — ie. a traded contract — except in the event that the trade occurred prior to the new CBA coming into place in January 2013.
Teams do not receive a credit for seasons with negative cap benefit (where cap hit exceeds salary), the league confirmed to CapGeek.com.
Please note, contracts that fall under the "over-35" rule do not qualify for cap benefit recapture, the NHL has confirmed.
LINK: CapGeek Recapture Calculator »
ROSTER EMERGENCIES
When injuries or suspensions result in insufficient cap room and a shortage of skaters for more than one game, teams can — after the first game of such shortage — recall replacement players provided they have a cap hit less than or equal to the league’s minimum salary plus $100,000, ie. $625,000 in 2012-13.
RETAINED SALARY TRANSACTIONS
Teams can retain a percentage of a contract’s remaining cap hit, salary and bonuses in trades. The following stipulations apply:
- No more than 50 per cent of the salary/cap hit can be retained
- Salary/cap hit cannot be retained on more than three contracts in one season
- The aggregate cap hits retained cannot exceed 15 per cent of the upper limit
- A contract can be traded only twice where salary/cap hit is retained
LINK: Article by James Mirtle of the Globe and Mail »