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Habs Salary Cap Info and FAQ's


dlbalr
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This might be a stupid question, and maybe somebody already asked it, but I'm gonna ask anyways.

 

If a player is offered performance bonuses, how do the bonuses get applied on the Cap?

 

Iet's say the Habs sign Perry to a 1 year extension at 1 million$ and also offer him a 200,000$ bonus if the Habs make the finals again. If the Habs make the finals, does that 200K bonus count against the cap?

 

I assume it does, it's just that we almost never hear of performance bonuses anymore (compared to the pre-cap era)

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21 minutes ago, Habsfan said:

This might be a stupid question, and maybe somebody already asked it, but I'm gonna ask anyways.

 

If a player is offered performance bonuses, how do the bonuses get applied on the Cap?

 

Iet's say the Habs sign Perry to a 1 year extension at 1 million$ and also offer him a 200,000$ bonus if the Habs make the finals again. If the Habs make the finals, does that 200K bonus count against the cap?

 

I assume it does, it's just that we almost never hear of performance bonuses anymore (compared to the pre-cap era)

As I understand it:


Bonuses are only allowed on Entry Level Contracts, one-year 35+ contracts and one-year contracts for players returning form serious injury (see below for CBA specifics) ... once earned, all bonuses are applied to that season's cap ... if it puts the team over the cap then then the amount of the overage is applied against the following seasons cap (i.e., reducing it before the season starts) ... it is one reason that most teams leave a cushion in their cap spending to allow for performance bonuses ... Habs exceeded the cap this past season due to bonuses ... believe they are starting a few hundred thousand below the "league" cap as a result ...


BTW, signing bonuses are treated just like regular salary for cap purposes, but paid in a lump-sum at a prescribed date instead of throughout the season.

 

 

Performance Bonuses shall be allowable under this Agreement only for:
(i) Players with Entry Level SPCs under Article 9 of this Agreement;
(ii) Players aged 35 or older as of June 30 prior to the League Year in which the SPC is to be effective, who have signed a one-year SPC for that League Year; and
(iii) Players who are "400-plus game Players" for pension purposes, and who: (i) in the last year of their most recent SPC, spent 100 days or more on the Injured Reserve List; and (ii) have signed a one-year SPC for the current or upcoming League Year.

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If the bonus is earned, it goes on that year's cap. 

 

If you go over the cap due to bonuses, you get a cap penalty to be applied the following season.

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