NHL Tightens Playoff Salary Cap Rules too Curb Circumvention
The NHL has implemented a new salary cap system specifically for the playoffs, responding to teams exceeding the limit during postseason play. The change stems from instances like the Tampa Bay Lightning‘s 2021 championship run, where the team operated with a payroll exceeding the salary cap by over $15 million.
the new playoff cap differs considerably from the regular season cap. Unlike the pro-rata calculation used during the regular season, the playoff cap accounts for a player’s full salary. However, it doesn’t apply to the entire 23-man roster. Instead, the cap applies only to the 18 skaters and two goaltenders listed on the game sheet, plus any associated costs from contract buyouts or salary retentions.
Changes have also been made to Long-term Injury Reserve (LTIR) rules. Teams can now only utilize the full value of a player’s contract under LTIR if that player is definitively ruled out for the entire season, including the playoffs. if a player’s return during the postseason is possible, the maximum salary charged to the cap is capped at the NHL league average – $3.82 million as of last season.This prevents teams from strategically keeping players on LTIR to create cap space for additional acquisitions during the playoffs.
Despite these changes, the NHL acknowledges that loopholes will likely persist. “Teams know this and do not hesitate to spend large sums of money to hire experts capable of spotting them,” the article states, highlighting the ongoing cat-and-mouse game between teams and the league. However, the new rules make it considerably more arduous to significantly bolster a team’s roster through cap manipulation.
General managers now face the challenge of managing both the regular season and playoff salary caps. teams are already exploring strategies to maximize their rosters within the new framework.
One tactic involves strategically utilizing goaltenders.A team can effectively “shelve” a higher-paid backup goaltender – whose contract wouldn’t count against the cap – and dress a cheaper third-string goalie. This frees up cap space for a more impactful player, based on the assumption that the starting goaltender will play the majority of playoff games. This strategy could also be applied to underperforming, highly-paid players.
Another potential strategy centers around structuring player contracts to prioritize performance-based bonuses over base salaries or signing bonuses. Currently,bonuses tied to metrics like games played,goals,or assists are not included in the playoff salary cap calculation.Experts anticipate teams will exploit this oversight and others within the collective bargaining agreement.
