Salary Cap: Question from an outsider

[thedoughboy]

Hey all, hawks fan here and i had a quick question if anyone in this sub could answer it.

Per General Fanger Zdeno charas cap hit drops off on the last year of his contract. I'm confused as to how this works or if generalfanger has some weird info.

If this is the wrong spot to post this sorry![

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[Patrice37]

Players are charged their actual salary against the cap from age 40 onward. Thus, Chara makes $4M that season, and so his cap hit is $4M.

 

[Ratty]

Hey all, hawks fan here and i had a quick question if anyone in this sub could answer it.

Per General Fanger Zdeno charas cap hit drops off on the last year of his contract. I'm confused as to how this works or if generalfanger has some weird info.

If this is the wrong spot to post this sorry![

I believe the Cap hit is based upon the total value of the contract divided by the number of years. Thus the hit would be the same for the entire length of the contract.

Some teams make agreements on long term contracts to reduce the salary for the last year or two as the player's production decreases so as to permit the player to retire early without significant cut in pay.

 

[BB88]

It's the Kovy rule.

"players are charged their actual salary against the cap from age 40 onward. Thus, Chara makes $4M that season, and so his cap hit is $4M"

 

[thedoughboy]

Players are charged their actual salary against the cap from age 40 onward. Thus, Chara makes $4M that season, and so his cap hit is $4M.

Alright, that makes sense. Maybe I need to do a bit more reading, but wouldn't that apply for say Hossa and Keiths contracts too? or is that part of the Kovy rule?

I believe the Cap hit is based upon the total value of the contract divided by the number of years. Thus the hit would be the same for the entire length of the contract.

Some teams make agreements on long term contracts to reduce the salary for the last year or two as the player's production decreases so as to permit the player to retire early without significant cut in pay.

Problem is Charas cap hit is 6.9 for this year and next, but is 4mil in his last season of the contract (why I am asking!)

It's the Kovy rule.

Thanks, gonna go do some reading now, any good links for explanations/ links to actual rulebook?

 

[thedoughboy]

It's the Kovy rule.

"players are charged their actual salary against the cap from age 40 onward. Thus, Chara makes $4M that season, and so his cap hit is $4M"

Another question based on the edit, then why wouldn't say keith and hossas contract have the same thing where their salary would lower once over forty?

 

[HockeyMomx2]

Believe it has to do with length of contract, but am likely wrong.

 

[BB88]

Another question based on the edit, then why wouldn't say keith and hossas contract have the same thing where their salary would lower once over forty?

They were signed 1 year earlier, when Chara was signed the rule was on place.

2010 Chara, 2009 Hossa and Keith.

 

[Replicator]

Alright, that makes sense. Maybe I need to do a bit more reading, but wouldn't that apply for say Hossa and Keiths contracts too? or is that part of the Kovy rule?



Problem is Charas cap hit is 6.9 for this year and next, but is 4mil in his last season of the contract (why I am asking!)



Thanks, gonna go do some reading now, any good links for explanations/ links to actual rulebook?

Google for NHL CBA, it should be in there. Beware, it's 400-500 pages, though much of it deals with where league revenue comes from, and how that gets divided on a per-player, per-game basis.

Notice that the Chara contract is worth $45.5M (including signing bonus), the cap hit is $4M in the last year, and ($45.5 - $4M)/6yrs for all previous years, so all the money is eventually counted against the cap.

 

[thedoughboy]

They were signed 1 year earlier, when Chara was signed the rule was on place.

2010 Chara, 2009 Hossa and Keith.

Makes sense, thanks!

Google for NHL CBA, it should be in there. Beware, it's 400-500 pages, though much of it deals with where league revenue comes from, and how that gets divided on a per-player, per-game basis.

Notice that the Chara contract is worth $45.5M (including signing bonus), the cap hit is $4M in the last year, and ($45.5 - $4M)/6yrs for all previous years, so all the money is eventually counted against the cap.

Alright, thanks a tonne!