Quote:
Originally Posted by AC
That seems to be the suggestion from CapFriendly.
Basic Formula
This formula is used throughout the season and during the off-season
Amount team can exceed the cap = Cap hit of LTIR player - Amount of cap space available
Basic Formula Example
The league upper limit is $69M. A team has an averaged club salary of $68M and a player with a cap hit of $5M becomes injured and the team places him on LTIR. The team is now permitted to spend up to a new limit of $72M:
Cap hit of LTIR player is $5M
Amount of cap space available to team = $69M - $68M = $1M
Amount team can exceed the cap = $5M - $1M = $4M
New limit = $68M + $4M = $72M
https://www.capfriendly.com/ltir-faq
So the roster moves tomorrow might be pretty fast and furious. |
I believe Cap Friendly's math is wrong here. It's all explained correctly, but they use the wrong number in the final calculation. They use the team's existing payroll total (68), rather than the Upper Limit (69) when calculating the new Upper Limit.
It should be 69+4 for a new limit of $73 million because the team can exceed the cap by the additional $4 million. They're a million under the cap and can use the player's $5 million cap hit in LTIR, but the first million of that counts towards the upper limit. They can exceed the upper limit ($69M) by an additional $4 million.
Here's the example that's in the CBA:
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A Player with a Player Salary of $1.5 million becomes unfit to play for more than 24 calendar days and 10 NHL Regular Season games. At the time the Player becomes unfit to play, his Club has an Averaged Club Salary of $69.5 million, and the Upper Limit in that League Year is $70 million. The Club may replace the unfit-to-play Player with another Player or Players with an aggregate Player Salary and Bonuses of up to $1.5 million. The first $500,000 of such replacement Player Salary and Bonuses shall count toward the Club's Averaged Club Salary, bringing the Averaged Club Salary to the Upper Limit. The Club may then exceed the Upper Limit by up to another $1 million as a result of the replacement Player Salary and Bonuses. However, if the unfit-to-play Player once again becomes fit to play, and the Club has not otherwise created any Payroll Room during the interim period, then the Player shall not be permitted to rejoin the Club until such time as the Club reduces its Averaged Club Salary to below the Upper Limit.
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To make it easy, here's how you would calculate the amount of LTIR space available for Smid this season:
LTIR Space = Smid's Cap Hit - (Team Salary Cap - Flames Payroll with Smid)
Plugging in the real numbers:
$3.5M - ($73M - Flames Payroll)
Moving the numbers around:
LTIR Space = Flames Payroll - $69.5M
Right now, the Flames payroll is less than $69.5M, so there would be no LTIR space created.
Now, let's say Gaudreau signs for $7.3M. To be cap compliant with today's roster, they'd have to send Vey to the AHL:
$66,366,734.00 (today's payroll) + $7,300,000 (Gaudreau) - $700,000 (Vey) = $72,966,734 (Cap Compliant w/Smid)
Plug that into the LTIR Space formula:
$72,966,734 - $69,500,000 = $3,466,734
That would maximize the LTIR space available.
There are a few different roster moves they could make to maximize the space available depending on how much Gaudreau signs for.
Either way, it's incorrect to suggest that the signing is delayed because they're waiting until after the roster deadline tomorrow to maximize the LTIR space available.