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Hey i was wondering what if a team is over the cap before the start of the NHL season? What happens, are they fined I honestly don't know and if someone can answer it, it will be much appreciated. I took a look at the NYR right now without the signing of Avery, Hossa, and Lunqvist(already signed) at http://www.thefourthperiod.com/NewYorkRangers.html and they are at 47 million without the Shanahan signing. The Cap is at 50.3 million i believe, add Shanahan to that and you're already over...how can they afford this?

Edited by Koivu11
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I thought the same when i saw this http://www.nhlnumbers.com/nyr.html. Is there a luxury taxe or something like NY Yankees use to pay year after year ???

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well if there was a luxury tax would the owners care? if they get the best players signed, the stands will be filled, they will most probably make the playoffs and are in contention fo the cup like the Rangers are now. Owners, now in the New NHL are proviong that they can still buy the cup like the Rangers and Wings have done before!

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Article 50.5 [c] [ii]

Nevertheless, in order to ensure that Clubs may have the sufficient time and flexibility to plan their rosters during the off-season, the Upper Limit shall be temporarily raised by ten (10) percent to permit Clubs addiditional flexibility within their Average Club Salaries during the period from July 1 until and including the last day of Training Camp. On the day following the last day of Training Camp, the Upper Limit shall again be lowered to the level as calculated in Section 50.5, and all Clubs must once again be in compliance with the Upper Limit from the day following the last day of Training Camp until and including June 30.

So basically, teams can sign $55.22 million in player contracts this summer without incurring any kind of discipline by the league. But once training camp ends, they have to get their 23-man roster under the $50.2 million cap.

Edited by RobRock
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Perhaps Washtington is paying part of Jagr's salary...?

Yeah half.

As for what the punishment is I believe that the team in question forfits every game they are over the cap and are foreced to start waiving players.

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Yeah half.

As for what the punishment is I believe that the team in question forfits every game they are over the cap and are foreced to start waiving players.

Cheating on the Salary Cap

"Hockey-related" revenue is defined in the agreement, and team revenue reports are audited. A team found to be hiding revenue is fined $1 million plus the amount misreported for the first offense, and $5 million plus the double the amount misreported for further offenses.

Side deals are not allowed. Teams cannot circumvent the salary cap by paying players through other means - such as gifts, reimbursements on expenses, personal deals, money redirected through related corporate entities, seperate contracts for marketing and promotion, etc.

Edited by InsaneAVSfan
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What about bonuses? Signing bonus, a bonus for play X number of games or scoring X number of goals or points...

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What about bonuses? Signing bonus, a bonus for play X number of games or scoring X number of goals or points...

I think this is why teams leave wiggle room, as short term injury call ups can count against the cap as well. Some guys with a two way can be sent down while cheaper guys can be called up. I only know small parts of the cap from what I read. Or do like New Jersey, trade a contract with a pick to reduce salaries, or move a high priced guy to the minors. (Molgilny)

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Cheating on the Salary Cap

"Hockey-related" revenue is defined in the agreement, and team revenue reports are audited. A team found to be hiding revenue is fined $1 million plus the amount misreported for the first offense, and $5 million plus the double the amount misreported for further offenses.

Side deals are not allowed. Teams cannot circumvent the salary cap by paying players through other means - such as gifts, reimbursements on expenses, personal deals, money redirected through related corporate entities, seperate contracts for marketing and promotion, etc.

That covers reporting revenues, not player salaries. I'm not sure about forfeiting games, but I'm pretty sure that if you attempt sign a player to a deal that would put you over the cap, the league wouldn't validate the contract until the team made room for it. And I don't think the player would be eligible to play until that happened.

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As of today, I have the Rangers upper limit (not necessarily payroll) at $47,136,310, including Shanahan's deal. (Of note, Kasparaitis is not included since he'll be waived and farmed out since no one in their right mind would want his contract.) Shanahan's deal is incentive based, $2.5 mil base and $2.8 mil in bonuses, so that could potentially provide relief as the season progresses (it all counts against the upper limit currently.) Jagr's cap hit is $4,940,000, the portion that the Rangers are actually paying (Jagr gets roughly $8.96 mil salary). Given that they only have Avery and Hossa left to sign, they'll be fine cap-wise.

Two teams to keep an eye on: Philly (Primeau's still on the books, Rathje's LTIR is never guaranteed), and Boston (Zhamnov's still on their books, LTIR likely though, Kessel's upper limit is $2.2 mil like Price's with Montreal.)

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What's stopping a team from offering a guy a million a season and then giving him 5 million on the side, off the table? Can't they call it a signing bonus and it doesn't count against the cap - or is that only in EHM?

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What's stopping a team from offering a guy a million a season and then giving him 5 million on the side, off the table?

Hmmm, like, by slipping a brown paper bag stuffed with hundreds into his duffel bag after every practice...

excellent.jpg

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What's stopping a team from offering a guy a million a season and then giving him 5 million on the side, off the table? Can't they call it a signing bonus and it doesn't count against the cap - or is that only in EHM?

Well the total value of the contract is what it used to calculate the average salary hit per year and that it what counts as the cap number...

Someone can correct me if wrong, but my interpretation is that if Player A got 5M a year for 5yrs and a 5M signing bonus, then the cap hit would actually 30/5 or 6M.

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Cheating on the Salary Cap

"Hockey-related" revenue is defined in the agreement, and team revenue reports are audited. A team found to be hiding revenue is fined $1 million plus the amount misreported for the first offense, and $5 million plus the double the amount misreported for further offenses.

Side deals are not allowed. Teams cannot circumvent the salary cap by paying players through other means - such as gifts, reimbursements on expenses, personal deals, money redirected through related corporate entities, seperate contracts for marketing and promotion, etc.

I have sometimes wondered about endorsements. My take is it's one of the possible hidden bonuses involved in playing for the Habs, as there are many Montreal/Quebec businesses that use hockey players in their promotional campaigns, more than in say Dallas.

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I have sometimes wondered about endorsements. My take is it's one of the possible hidden bonuses involved in playing for the Habs, as there are many Montreal/Quebec businesses that use hockey players in their promotional campaigns, more than in say Dallas.

Let's say Chris Higgins signs an endorsement deal with a Montreal GM dealership. That money is all his, and doesn't count against the cap, as long as there's no connection between the team and the dealership, i.e. if Gainey was a partner in the dealership, it wouldn't be considered an "arms-length" transaction. If Gainey knew the owner and introduced them, it should be okay. So if a habs player signed an endorsement deal with one of George Gillett's outside businesses, that money would be considered as player salary and could be counted against the cap.

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They're paying a portion of Jagr's salary and bonuses but I don't believe it's half. I read it in an article late last fall so I'll try and dig up the details.

Yeah half.

As for what the punishment is I believe that the team in question forfits every game they are over the cap and are foreced to start waiving players.

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Part of the Caps and Rangers deal for Jagr was that they would pay for half of his contract.

smon, here's a recent example that should explain what you were wondering...

http://tsn.ca/nhl/news_story/?ID=212929&hubname=nhl

The deal will pay Vanek $5 million in the first two seasons, and $6.4 million in each of the following five seasons. The contract will also pay him a $5 million and $3 million signing bonus in the first two years.

The offer was 50M$ for 7 years (including bonuses). So the cap hit is 50/7.

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