2020/21: • Upper Limit = $81.5 Million • Midpoint = $70.9 Million • Lower Limit = $60.2 Million
Thereafter (subject to the provisions above regarding the Extension Year):
• Upper Limit will remain at $81.5 Million until Preliminary HRR for the just completed League Year surpasses $3.3 Billion.
• For any League Year where Preliminary HRR is between $3.3 Billion and $4.8 Billion, the Upper Limit for the following League Year shall be between $81.5 Million and $82.5 Million on a pro rata basis (e.g., if Preliminary HRR is $4.05 Billion, the Upper Limit will be $82 Million).
• Once Preliminary HRR for the immediately preceding League Year surpasses $4.8 Billion, the Upper Limit will increase by $1 Million per League Year until the Escrow Balance is paid off.
• The parties can agree to increase the Upper Limit in excess of $1 Million in order to allow for a smoother transition into the ‘Lag’ formula.
• The parties agree to discuss the Upper Limit in good faith in the event projected or Actual HRR decreases on a year over year basis.
Lag Formula (subject to the provisions above regarding the Extension Year):
• Parties to discuss and approve detailed mechanics and implementation of the ‘Lag’ formula subject to the following general parameters:
o Introduce the ‘Lag’ formula after the Escrow Balance has been repaid but not earlier than establishing the Upper Limit for 2023/24 League Year.
o Apply the current Payroll Range formula except for the following changes:
(1) Use HRR from the League Year two years prior (instead of Preliminary HRR from the immediately preceding League Year) (i.e., using HRR for Year 1 to set the Payroll Range for Year 3).
(2) Remove the Growth Factor (i.e., do not adjust the resulting Midpoint (based on Final HRR per (1) above) upward to yield the Adjusted Midpoint as provided for in Section 50.5(b)(i)).
o Maximum year-over-year increase in the Upper Limit will be the lesser of 5% and the trailing two year average HRR growth percentage (measured using Final HRR from the League Year four years prior, Final HRR from the League Year three years prior, and Preliminary HRR from two years prior and after taking into account any FX impact adjustments)
o Except for the 2026-27 League Year, minimum year-over-year increase in the Upper Limit is the lesser of 2.5% and the trailing two-year average HRR growth percentage. (measured using Final HRR from the League Year four years prior, Final HRR from the League Year three years prior, and Preliminary HRR from two years prior and after taking into account any FX impact adjustments)
o For any immediately upcoming League Year for which the NHL and NHLPA anticipate a Shortfall (as defined in Section 50.11(a)(i)) based on Preliminary or projected HRR, the parties may (but are not required to) increase the Upper Limit for that upcoming League Year by up to an additional 5% (over and above the increases dictated by the provisions above) so long as both the NHL and NHLPA agree to do so by the June 15th prior to that start of that League Year.
o The remaining aspects of the Payroll Range (i.e., the Lower Limit and Midpoint) shall in all instances be set in accordance with the terms of the current CBA.