[News] Flames will have a bonus overage of $660k for 2017/2018

[sureLoss]

CapFriendly @CapFriendly
Calgary #Flames 2017-18 Overage: $660,000

EOY cap space: $0
Total bonuses earned: $660,000
Players earning bonuses: 4


Because they exceeded the cap by $660,000 due to bonuses, the $660k will be charged to the Flames cap this year. Effectively meaning the Flames have a ~74.34 million salary cap for 2017/18 while any other team without bonus overages will have a $75 million cap hit.

Most of the bonuses were earned by Tkachuck

[Southside]

They were indeed EARNED.

[getbak]

I wonder who the other two players were?

Bennett should have got $212,500 for being a top-6 forward in ice time. Tkachuk should have got $425,000 for hitting 35 assists and leading the forwards in +/-.

That leaves $22,500 for two other players.

[Flash Walken]

Originally Posted by getbak

I wonder who the other two players were?

Bennett should have got $212,500 for being a top-6 forward in ice time. Tkachuk should have got $425,000 for hitting 35 assists and leading the forwards in +/-.

That leaves $22,500 for two other players.

Would Kulak have any bonuses for games played?

[sureLoss]

per capFriendly these are the 10 teams that incurred overages for 16/17

10. Capitals $4,978
9. Penguins $50,000
8. Sharks $235,500
7. Red Wings $457,500
6. Flames $660,000
5. Oilers $825,000
4. Flyers $1,062,500
3. Coyotes $2,498,438
2. Blackhawks $3,558,000
1. Leafs $5,370,000

[Locke]

Originally Posted by sureLoss

CapFriendly @CapFriendly
Calgary #Flames 2017-18 Overage: $660,000

EOY cap space: $0
Total bonuses earned: $660,000
Players earning bonuses: 4


Because they exceeded the cap by $660,000 due to bonuses, the $660k will be charged to the Flames cap this year. Effectively meaning the Flames have a ~74.34 million salary cap for 2017/18 while any other team without bonus overages will have a $75 million cap hit.

Most of the bonuses were earned by Tkachuck

That bastard!

[getbak]

Originally Posted by Flash Walken

Would Kulak have any bonuses for games played?

Yeah, it's likely Kulak and Hathaway with games played bonuses. They're the only ELC players who played more than 10 games but not the full season.

Games played bonuses can be paid on ELCs for 5, 10, or more than 10 games played. These bonuses are supposed to be calculated as part of the player's cap hit, but I guess you could earn a games-played bonus that throws your cap hit out of whack if you don't play the whole season.

[getbak]

Originally Posted by sureLoss

per capFriendly these are the 10 teams that incurred overages for 16/17

10. Capitals $4,978
9. Penguins $50,000
8. Sharks $235,500
7. Red Wings $457,500
6. Flames $660,000
5. Oilers $825,000
4. Flyers $1,062,500
3. Coyotes $2,498,438
2. Blackhawks $3,558,000
1. Leafs $5,370,000

Big hit for the Leafs, and they risk have another big overage next season if they stay anywhere close to the cap this year.

The Oilers got lucky because they had so many players with big bonuses on their contracts last season that they were well over the amount that could be buried, so they were forced to keep a lot of cap space for the bonuses.

[JohnnyTitan]

I kinda don't get the accounting here.

If a team had ample space in last year's cap (16/17) to absorb the Bonus $$s...why do they have to carry-over that amount?

I mean even in the Flames case (and especially the Leafs)...shouldn't the EARNING of those bonuses be matched to the season they were earned? It's a pretty standard accounting principle -> Match revenue to the correct time-period.

I can see if a team were at the cap to bump the overage...but why do these teams (Coyotes!) have to account for last year's bonuses next year?

I guess in the long run...if a team pays out bonuses every year it's kinda a wash as you're always pushing this year's bonuses to next year. But I don't get it.

[getbak]

Originally Posted by JohnnyTitan

I kinda don't get the accounting here.

If a team had ample space in last year's cap (16/17) to absorb the Bonus $$s...why do they have to carry-over that amount?

I mean even in the Flames case (and especially the Leafs)...shouldn't the EARNING of those bonuses be matched to the season they were earned? It's a pretty standard accounting principle -> Match revenue to the correct time-period.

I can see if a team were at the cap to bump the overage...but why do these teams (Coyotes!) have to account for last year's bonuses next year?

I guess in the long run...if a team pays out bonuses every year it's kinda a wash as you're always pushing this year's bonuses to next year. But I don't get it.

That is what happens. Whenever possible, bonuses are charged against the season in which they're earned. However, if the bonuses paid out put the team over the cap, that overage amount must carryover to the following season.

You can't use LTIR space to pay bonuses, so if you're into LTIR space (which Arizona and Calgary were), you're going to have carryover overages for next season.

The Coyotes ended the year with no cap space because they were carrying Bolland, Pronger, and Datsyuk's contracts.

That's another reason why having LTIR space is good, but it's not nearly as good as having actual cap space.



The Oilers had over $5 million in bonuses because of McDavid and Draisaitl, but they ended the season with $4.5 million in cap space, which is why their carryover is less than a million.

[JohnnyTitan]

That is a perfect explanation Getbak - thanks so much. And it does totally make sense...I guess I just got lazy and assumed Arizona, Toronto among others on the list must have had cap space.

So with all the hub-bub around the big McDavid deal...safe to assume that the Oilers will at a MINIMUM be incurring a huge bonus from the last year of McLotto's final ELC year. As a Flame fan loving that Oiler-Cap-Crunch doom-and-gloom...they really will have to fit in an extra $3M (minimum) this year and next.

Geez -> all of a sudden I'm hoping Poolboy makes the team out of camp and plays top-6 ice time! ;-) The summer of 2018 is going to be a real bi-atch for the Grease.

[CroFlames]

Did Johnny get a bump for winning a "major" award?

[jlh2640]

To me this is always a good thing !

[Oling_Roachinen]

Originally Posted by JohnnyTitan

So with all the hub-bub around the big McDavid deal...safe to assume that the Oilers will at a MINIMUM be incurring a huge bonus from the last year of McLotto's final ELC year.

Unfortunately, no. Given the cap space (16M+) they currently have and the only piece left to sign being Draisaitl, they probably aren't looking at much of a bonus overage cap hit unless they do sign a high priced UFA. However, there is another clause that could hurt the Oilers. The bonus cushion only allows for a team to exceed the cap by a max of 7.5% after totaling up all potential bonuses. Should McDavid, Puljujarvi, Nurse, Slepyshev, Caggiula and Benning all make the team, that's 7.5M in potential bonuses, exceeding the bonus cushion by nearly 2M that they must account for. It probably won't matter unless they get a high-priced UFA or have some major injury issues, but it does have the potential to limit potential rental targets at the deadline if they can't fit them into the cap thanks to that extra 2M "dead space."

EDIT: And with Pouliot on unconditional waivers for a buyout today, the Oilers will have close to 20M entering UFA. I think Pouliot's buyout is a good indication that they have reached a deal with a decently pricey UFA, which could have big bonus ramifications.

[mdubz]

Originally Posted by CroFlames

Did Johnny get a bump for winning a "major" award?

Award bonuses don't count

[getbak]

Originally Posted by CroFlames

Did Johnny get a bump for winning a "major" award?

He's no longer on his ELC, so he doesn't have any team-paid bonuses available.

Even if he was still on his ELC, the Lady Byng isn't considered one of the major awards for which a player can receive an additional "B" bonus from his team.