Cap Bonuses - can teams eat into them?

Discussion in 'Fugu's Business of Hockey Forum' started by HawkeyFanatic, Feb 10, 2011.

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  1. HawkeyFanatic

    HawkeyFanatic Registered User

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    may be a simple question for you guys.. but i didn't know where to post this..

    so i went to the CBA guys on the business board..

    chicago has 490k of bonuses on the cap from rookie level deals


    can chicago spend over the cap by this amount if they desire?


    thank you
     
  2. Roomtemperature

    Roomtemperature Registered User

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    I might be wrong about this and next year is a different beast but if you go over the cap with rookie bonuses then it goes onto next year's cap as a penalty. Next year since its the last year of a CBA that doesn't happen unless there is something about agreeing on a new deal inbetween.
     
  3. danishh

    danishh Registered User

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    this year you can go over the cap by a certain amount using that bonus space. (I always forget what it is, i think it's a maximum of 7.5% of the cap).

    So if you have 490k in bonuses, you can exceed the cap by 490k.
    If you have 4.45M in bonuses, you can exceed the cap by 4.45M
    If you have 6M in bonuses, you can still only exceed the cap by 4.45M.
    (rough numbers, and assuming that the 7.5% number is right).

    Whatever amount you exceed the cap by is 'rolled over' as a cap penalty the next year. Chicago fans will recognize this as the reason for their cap crunch this year: they have 4.1M in rollover bonuses from last year thanks to bonuses their ELC guys earned because of the stanley cup win (and a massive bonus toews got for the conn smythe).

    Next year is the last year of the CBA. Because of this, you cannot exceed the cap next year...it is a true hard cap. This is unless the NHL and NHLPA reach an agreement extending the CBA.
     
    Last edited: Feb 11, 2011
  4. LadyStanley

    LadyStanley RIP Fugu

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    There is no limit to bonus $$ rollover -- when there is a bonus cushion in place. But it'll count against the cap next year (and the 2011-2012 season will have no bonus cushion).

    See also the stickied CBA FAQ thread.
     
  5. HawkeyFanatic

    HawkeyFanatic Registered User

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    thank you very much.. extremely helpful!!

    THANKS!
     
  6. danishh

    danishh Registered User

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    50.5 (h) (ii)
    pretty sure it's limited to 7.5%, unless there is another applicable section i'm ignoring.



    @hawkstilldeath, http://capgeek.com incorporates the bonus cushion into calculations, so if you look at his chart for "max cap hit", that includes whatever amount the club can use from the bonus cushion.
     
    Last edited: Feb 11, 2011

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