LTIR Leaving Cap Room

Discussion in 'The Business of Hockey' started by devils26, Apr 3, 2007.

  1. devils26

    devils26 Registered User

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    Say the cap in a certain year is 40m, and a team has a total payroll of 38m, which leaves 2m to be used. A few days before the start of the season, a player with a 4m salary gets hurt and LTIR is used on him. The injured player is replaced with a guy who makes 4m, so the cap is up to 42m but that is okay because of the LTIR exception. My question is, can the 2m that was available in the beginning still be used, or the fact that the replacement player puts the team over the cap limit takes up the 2m that was remaining before the player was injured?
     
  2. Westguy13

    Westguy13 Registered User

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    They would have 2m they could use at the time if they wanted but once that player came back they would have major issues since they would be way over the cap. If the player was going to be out for the entire year then there would be no problem using that space.
     
  3. Irish Blues

    Irish Blues Worth waiting for :)

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    I pretty much answered this in your other thread, but the short answer is no - that 2M that was available has now been used, and the team has no cap space left until they made a move to drop a player or had another player be eligible for LTIR - in which case it would only give them the amount of the injured player's salary*.

    salary here is interpreted as Averaged Salary, though the CBA isn't clear about this; however, in the little bit I've been able to match up it appears that Averaged Salary and not "current year salary" is what's used for LTIR purposes.
     
  4. devils26

    devils26 Registered User

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    Thanks for the explanation.

    By the way, the site in your sig is great and very informative.
     

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