Contracts Under the new CBA

[slapshot1619]

Mainly I was wondering if anyone knew how contracts work under the new cba and the cap? More specifically, contracts for players with two way contracts, players in Rochester(i.e. Chris Thorburn, Mike Card, Zagrapan, etc...) ... Do they count against the cap?

[shrader]

Mainly I was wondering if anyone knew how contracts work under the new cba and the cap? More specifically, contracts for players with two way contracts, players in Rochester(i.e. Chris Thorburn, Mike Card, Zagrapan, etc...) ... Do they count against the cap?

 

The cap covers the total money spent over the course of the season. A team can have a total payroll over $39 million at any point in the season, as long as by the end of the year, they don't spend more than the $39 million cap. I would assume that for two way contracts, whatever the player is being paid goes towards that cap figure.

 

A quick example:

NHL salary: $500k

AHL salary: $20k

 

If this player plays half the year in the NHL and the other half in the AHL, he ends up counting as $260K against the cap.

 

 

If I'm wrong here, I'm sure dave will step in and correct me.

[Taro T]

The cap covers the total money spent over the course of the season. A team can have a total payroll over $39 million at any point in the season, as long as by the end of the year, they don't spend more than the $39 million cap. I would assume that for two way contracts, whatever the player is being paid goes towards that cap figure.

 

A quick example:

NHL salary: $500k

AHL salary: $20k

 

If this player plays half the year in the NHL and the other half in the AHL, he ends up counting as $260K against the cap.

If I'm wrong here, I'm sure dave will step in and correct me.

You are pretty close. The $44MM is for total (non-IR related, and non-bonus (for the handful of players league-wide that qualify for bonuses)) spending over the full season.

 

My understanding of how it works is that total payroll cannot project to over the cap at any point. Total team payroll is calculated daily (with players earning x% of their salary each day they are on the NHL roster). So a team that had a payroll that projected out to $34MM ($17MM actually spent) over the 1st half of the season could make roster moves in the 2nd 1/2 of the season that on paper would give them a full season payroll of $54MM ($27MM actually spent, for a total of $44MM).

 

Of course, the team would have to be back within 10% of the next season's cap by July 1 and at or under the next year's cap at the end of training camp.

 

During the season, if a team is at the cap (e.g., they've spent $22MM over 1st 1/2 of the season, and existing payroll projects another $22MM to be spent by June 30) and wants to make a player move that would put them over the cap (except in the case of salary less than or equal to that of players on IR), they would have to make additional moves (sending guys down, cutting guys, or making salary dump trades) before making the move they want to make.

 

Also, during the season, a player's salary only counts against the cap if he is on the NHL roster, so your theoretical example would count $250k against the cap.

[shrader]

Also, during the season, a player's salary only counts against the cap if he is on the NHL roster, so your theoretical example would count $250k against the cap.

 

This confuses me a bit. The Devils were paying all of Mogilny's salary last year, but he didn't count against their cap? That sounds strange.

 

But this does answer the original question, players on 2-way contracts (while playing Rochester) do not count against the cap.

[slapshot1619]

You are pretty close. The $44MM is for total (non-IR related, and non-bonus (for the handful of players league-wide that qualify for bonuses)) spending over the full season.

 

My understanding of how it works is that total payroll cannot project to over the cap at any point. Total team payroll is calculated daily (with players earning x% of their salary each day they are on the NHL roster). So a team that had a payroll that projected out to $34MM ($17MM actually spent) over the 1st half of the season could make roster moves in the 2nd 1/2 of the season that on paper would give them a full season payroll of $54MM ($27MM actually spent, for a total of $44MM).

 

Of course, the team would have to be back within 10% of the next season's cap by July 1 and at or under the next year's cap at the end of training camp.

 

During the season, if a team is at the cap (e.g., they've spent $22MM over 1st 1/2 of the season, and existing payroll projects another $22MM to be spent by June 30) and wants to make a player move that would put them over the cap (except in the case of salary less than or equal to that of players on IR), they would have to make additional moves (sending guys down, cutting guys, or making salary dump trades) before making the move they want to make.

 

Also, during the season, a player's salary only counts against the cap if he is on the NHL roster, so your theoretical example would count $250k against the cap.

 

AAAAAHHHH... ok makes sense. My big question laid more in where players with 2 way contracts or playing in rochester laid in on the cap. If they counted or not... so If Chris Thorburn is making $600,000 that $600k is not counted against the cap until/if he makes the main roster. Thanks guys

[shrader]

AAAAAHHHH... ok makes sense. My big question laid more in where players with 2 way contracts or playing in rochester laid in on the cap. If they counted or not... so If Chris Thorburn is making $600,000 that $600k is not counted against the cap until/if he makes the main roster. Thanks guys

 

And that cap hit is prorated to the number of games he plays in the NHL, just like his actual salary is.

[Taro T]

This confuses me a bit. The Devils were paying all of Mogilny's salary last year, but he didn't count against their cap? That sounds strange.

 

But this does answer the original question, players on 2-way contracts (while playing Rochester) do not count against the cap.

You understand the rule correctly. Mogilny had to clear waivers to play in the minors and, had NJ wanted to recall him, he would have had to clear "re-entry waivers". Basically, had NJ tried to recall him, any team could have had him for 50% of his remaining NHL salary and NJ would have been on the hook for the other 1/2. The 50% NJ would have paid would have counted against their cap.

 

Teams have a huge incentive with the "re-entry waiver" to not stockpile NHL talent in the AHL, because they are taking a direct $ hit as they are paying x MM's of $'s for a guy to help their farm club and in order to use the player they have to risk giving away the player for nothing AND being out 50% of his remaining salary both actual $-wise and cap-wise.

 

There were rumors that the league was going to modify or do away with the "re-entry waiver" but I haven't heard nor seen anything official. So AFAIK, the threshold this season is $95k to avoid them.