Bonuses and the Cap

[Thirty One]

I feel like this might be referred to a lot so here's a thread.

RangerBoy goes into the cap implications of bonuses here: GDT: - Free Agent Frenzy

The Rangers figure to have about $10 million in potential performance bonuses. You can go over the cap by $6,112,500 in performance bonuses but no more. So the Rangers need to leave space for about another $4 million in bonuses in excess of the bonus cushion. When those bonuses become unachievable, you don't need to count them, but that day is not today.

Here's my best guess at a 23-man roster:

It's tight. I don't know if they will carry a 23-man roster, probably not. If Barron or Kravtsov are on the roster, you have to count their bonuses too ($850,000 each.)

BBKers outlines the types of bonuses that can be given out here: GDT: - Free Agent Frenzy

There's no gimmies there. It's pretty obvious that a lot of these performance bonuses won't be reached, but they need to be accounted for before the season anyways.

I don't think we're going to be looking at bonus overages for 2020-21. By necessity, we need to leave about $4 million in room for bonuses in excess of the bonus cushion anyways. So if the performance bonuses reached fall below $4 million (which I would say is very likely) they'll be room for them under this year's cap.

Click to read more...

 

[bbny]

I'll just say if they have a bunch of performance bonuses triggering, we won't care about them carrying over anyway because that means at least a few of the kids performed exceptionally well.

 

[Thirty One]

I'll just say if they have a bunch of performance bonuses triggering, we won't care about them carrying over anyway because that means at least a few of the kids performed exceptionally well.

Yeah, especially for the Type B bonuses, which makes up $2 million of the number for Kakko and Lafreniere. If they hit on those, they are among the best players in the league this season.

But the bigger concern is having to account for the bonuses that aren't hit, just because of the sheer number of them.

 

[Off Sides]

Why is @Thirty One being serious?

Also easy solution, just trade away those who would have bonuses for character players who do not have bonuses.

 

[DanielBrassard]

I believe some of the bonuses were for things that are no longer achievable, for example making the all-rookie team for Fox and Kakko. Obviously they are no longer rookies so do those get subtracted from the amount? I'm assuming they do but probably not enough to make a difference.

 

[Thirty One]

I believe some of the bonuses were for things that are no longer achievable, for example making the all-rookie team for Fox and Kakko. Obviously they are no longer rookies so do those get subtracted from the amount? I'm assuming they do but probably not enough to make a difference.

Yeah, little details are available on what the actual bonuses are, but if All-Rookie team is there for Fox or Kakko those would be unachievable. Same for being named to the All-Star game (presumably there won't be one). Each one could be as much as $212,500. But while total payout for Type A bonuses is $850,000, you can have more potential bonuses than that, with the understanding that if you hit on all, they will be capped out at $850,000. So it's likely that they still would have achievable bonuses equaling at least $850,000.

1. Individual "A" Bonuses Paid by Clubs The maximum amount payable for any single category of Individual "A" Bonuses identified below is $212,500 per season. (For example, an Entry Level SPC may not contain bonuses of $212,500 for 20 goals and an additional $212,500 for 30 goals, provided, however, it may contain a bonus of $100,000 for 20 goals and $112,500 for 30 goals). An Entry Level SPC may contain any number of Individual "A" Bonuses; however, a Player may not receive more than $850,000 in total aggregate Individual "A" Bonuses per season. Individual "A" Bonuses are payable by the Clubs (as opposed to the League).

 

[Kaapo di tutti capi]

Thank you for the very clear and concise explanation!

 

[Leetch3]

I believe some of the bonuses were for things that are no longer achievable, for example making the all-rookie team for Fox and Kakko. Obviously they are no longer rookies so do those get subtracted from the amount? I'm assuming they do but probably not enough to make a difference.

its not just limited to those...I think they can also have B level bonuses for winning any major award, making 1st or 2nd NHL allstar team, finishing top 10 in goals....unlikely but possible.

and that would apply only to Kakko who has $1.8 mil in potential B level bonuses...Fox does not. he just has the $850K A level bonuses

 

[frozenrubber]

its not just limited to those...I think they can also have B level bonuses for winning any major award, making 1st or 2nd NHL allstar team, finishing top 10 in goals....unlikely but possible.

and that would apply only to Kakko who has $1.8 mil in potential B level bonuses...Fox does not. he just has the $850K A level bonuses

I feel dirty for saying this, but this is one of the few times have Lou Lamoriello as GM would of made the math a lot easier:

“We do not have any individual bonuses in any player’s contract and never had it including our picks that we’ve drafted over the years. This was established after a couple of years that I came (to New Jersey). I saw something that in my mind is not team-first philosophy when players have bonuses that if they score goals, they get more money, or if they get more ice time than another player, they get more money.
I am not one who is a believer in the rookie bonuses that is in the National Hockey League CBA — the A, Bs and Cs as they’re called. Yet, everyone in the league that are drafted certainly in the top areas seem to get them. Nobody (with the Devils) has not gotten them and our conversations have been that this would not be something that’s advantagous for us to do and the reason is because every player in our locker room that we have drafted have bought into that philosphy and nobody worries about individual things and only the team and it’s a commitment that’s made. Getting a young player who his peers who have been drafted below him and above him, for him to understand and agree to that — and also his representation — this young man is as mature as he can get at his age.”

Granted, Lamoriello softened his views in Toronto, maxing out bonuses for the like of Matthews while still screwing Marner out of B level bonuses. Now the Islanders have 8 contracts in the organization (compared to 15 for the Rangers) with potential performance bonuses.

 

[Leetch3]

I feel dirty for saying this, but this is one of the few times have Lou Lamoriello as GM would of made the math a lot easier:



Granted, Lamoriello softened his views in Toronto, maxing out bonuses for the like of Matthews while still screwing Marner out of B level bonuses. Now the Islanders have 8 contracts in the organization (compared to 15 for the Rangers) with potential performance bonuses.

his views softened as soon as he had players that needed to be given bonuses...he didn't give performance bonuses to adam larsson. that was the only guy that warranted them since they became a thing until he got to Toronto and gave them out.

 

[Tob]

I feel like this might be referred to a lot so here's a thread.

RangerBoy goes into the cap implications of bonuses here: GDT: - Free Agent Frenzy

The Rangers figure to have about $10 million in potential performance bonuses. You can go over the cap by $6,112,500 in performance bonuses but no more. So the Rangers need to leave space for about another $4 million in bonuses in excess of the bonus cushion. When those bonuses become unachievable, you don't need to count them, but that day is not today.

Here's my best guess at a 23-man roster:

It's tight. I don't know if they will carry a 23-man roster, probably not. If Barron or Kravtsov are on the roster, you have to count their bonuses too ($850,000 each.)

BBKers outlines the types of bonuses that can be given out here: GDT: - Free Agent Frenzy

There's no gimmies there. It's pretty obvious that a lot of these performance bonuses won't be reached, but they need to be accounted for before the season anyways.

I don't think we're going to be looking at bonus overages for 2020-21. By necessity, we need to leave about $4 million in room for bonuses in excess of the bonus cushion anyways. So if the performance bonuses reached fall below $4 million (which I would say is very likely) they'll be room for them under this year's cap.

This is the kind of spread sheet I'd expect from a top of the class UoV graduate.

 

[HatTrick Swayze]

Good stuff @Thirty One, nice to see the numbers.

 

[Thirty One]

This is the kind of spread sheet I'd expect from a top of the class UoV graduate.

What is UoV?

 

[Tob]

What is UoV?

Didn't you go there for university? Or just the city but not the school.

 

[Thirty One]

Didn't you go there for university? Or just the city but not the school.

Are you talking about the University of Victoria? What kind of foreigner calls it UoV? It's UVic. And I went there but I graduated from VIU.

 

[Edge]

Having three franchise level young players is wonderful.

But it also comes with $8.3m in potential costs as well.

How weird is it to think the Rangers are in a tight situation partially because they have “an excess” of top young talent?

 

[Leetch3]

Having three franchise level young players is wonderful.

But it also comes with $8.3m in potential costs as well.

How weird is it to think the Rangers are in a tight situation partially because they have “an excess” of top young talent?

some problems are nicer to have than others....

 

[Raspewtin]

really appreciate this thread since I know f*** all about the bonus cushion. literally nothing.

thanks for the work <3

 

[duhmetreE]

Further clarification, if I understand it right, you're charged for the only 'realized' bonuses?

Anything over the bonus max + over the cap, is charged to next years cap. ( I saw somewhere it can be split into 2 years )

IF true, I dont think its that dire.

p.s. @GAGLine was the grass roots hipster. He was talking about it before it was cool

 

[Crease]

You did good @Thirty One.

 

[Thirty One]

You did good @Thirty One.

I've been waiting so long for this!

 

[Thirty One]

Further clarification, if I understand it right, you're charged for the only 'realized' bonuses?

Anything over the bonus max + over the cap, is charged to next years cap. ( I saw somewhere it can be split into 2 years )

IF true, I dont think its that dire.

p.s. @GAGLine was the grass roots hipster. He was talking about it before it was cool

Yes, for that reason it's unlikely we're going to have a bonus overage carry into next season. But going into the season, we need to consider all the bonuses, even the ones that won't be realized. Which kinda sucks. There's a bonus cushion there in part to account for the fact that most ELC bonuses won't be reached. But it's not enough to cover all the potential bonuses we will have.

And yes @GAGLine was the OG.

 

[Brooklyn Rangers Fan]

Great work, @Thirty One.

Any chance you can update as guys sign? Would hopefully cut down on some of the bitching in the roster building thread...

 

[NYRFANMANI]

When was this established? It flew by me entirely!

It's just weird. So teams have to keep a certain amount of cap open, IN THE CASE that rookies hit their bonuses?

I just can't understand the sense of not knowing the actual cap hit of the team, until the season ends ...

 

[Leetch3]

When was this established? It flew by me entirely!

It's just weird. So teams have to keep a certain amount of cap open, IN THE CASE that rookies hit their bonuses?

I just can't understand the sense of not knowing the actual cap hit of the team, until the season ends ...

this has always been a thing, we've just never had young players good enough to worry about it...