NHL salary cap projected for next year: $87.7 million

[pmorrow]

Pierre LeBrun
@PierreVLeBrun
·
44m
The NHL updated governors today on the latest revenue projections for the season and as expected, the league told owners the salary cap for next season is projected to be around $87.7 million

[2014olympicgold]

That's up from the rumour $87.5m at the end of last yr.

[LawMan]

Also, this season's cap is $83.5m so the cap would go up $4.2m for next season

[rataylor22]

The number is $87.675 and has been CBA mandated to be that number since July 2020 so I don't know why reporters are acting like we haven't known this for years.

The NHL MOU during Covid pre-determined:

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.

A lot of words but essentially the $1M cap increase until the shortfall was paid off were pre-mandated, and after that the cap can raise a minimum of 2.5% and a maximum of 5%. Because there is so much revenue growth to account for, the cap will raise 5% next offseason and 5% the offseason after that.

So spoiler alert, the 2025/2026 cap will be $92.05875, Which maybe they smooth out to $92M or $92.1M, or something like that.