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What are the key points in the new CBA signed in 2013?

Here’s a look at some preliminary details of the tentative NHL-NHLPA collective bargaining agreement. We’ve selected the details most relevant to CapGeek.com’s numbers and estimates.



Full CBA text from NHLPA »


UPPER LIMIT (lower limit/midpoint/upper limit)

  • 2012-13: $44M/$52M/$60M *
  • 2013-14: $44M/$54.15M/$64.3M

The lower limit must be reached without performance bonuses.

* transition rules permit teams to spend up to $70.2M

LINK: Article by James Mirtle of the Globe and Mail »


COMPLIANCE BUYOUTS

There is a provision in the CBA for compliance buyouts, which are sometimes referred to as amnesty buyouts. We have a separate FAQ entry explaining how these work.


MINIMUM NHL SALARY

  • 2012-13: $525,000
  • 2013-14: $550,000
  • 2014-15: $550,000
  • 2015-16: $575,000
  • 2016-17: $575,000
  • 2017-18: $650,000
  • 2018-19: $650,000
  • 2019-20: $700,000
  • 2020-21: $700,000
  • 2021-22: $750,000

BURIED CONTRACTS (Wade Redden Rule)

Money paid to players outside of the NHL counts against the cap.

A one-way contract counts against the cap as follows:

cap hit – [ minimum salary + $375,000 ]

Example: If Player A with cap hit $6.5M plays in the minors in 2013-14, he counts as follows.

$6.5M – [ $550,000 + $375,000 ] = $5.575M

A two-way contract counts as follows:

minor-league salary – [ minimum  salary + $375,000 ]

Example: Player B’s two-way contract pays $3M/$1M in 2013-14 and counts as follows in the minors.

$1M – [ $550,000 + $375,000 ] = $75,000

REENTRY WAIVERS

Reentry waivers have been eliminated in the new CBA.


LONG-TERM INJURED RESERVE

Long-term injured reserve remains unchanged in the new CBA.


THE 35-PLUS RULE

The 35-plus rule remains unchanged in the new CBA.

LINK: CapGeek FAQ explaining the 35-plus rule »


PERFORMANCE BONUS CUSHION

The performance bonus cushion applies in every year of the CBA.


FREE AGENCY

Group 3 unrestricted free agency remains unchanged and begins on July 1 each year. UFAs may meet and interview with potential new clubs from the day after the entry draft (June 25 at the latest) until June 30.


CONTRACT LIMITS

Maximum contract length is seven years, but extends to eight if a club is re-signing its own player. The eight-year re-signing option expires for UFAs with the opening of free agency on July 1.


CONTRACT VARIABILITY

Front-loaded contracts where the average of salary plus bonuses over the first half of the contract exceeds the cap hit, variability rules apply. Year-to-year variability is limited to 35 per cent of the first-year compensation. If a player earns $10M in Year 1, the contract cannot subsequently increase/decrease by more than $3.5M from year to year. Meanwhile, the lowest year’s compensation cannot be less than 50 per cent of the highest year’s compensation. If a player earns $10M in his highest year, he can never earn less than $5M any other year.

The old 100 per cent rule applies to any other multi-year contract.

LINK: CapGeek FAQ on the 100 per cent rule »


CAP ADVANTAGE RECAPTURE

We explain this in a separate FAQ entry: How does cap advantage recapture work?


ROSTER EMERGENCIES

When injuries or suspensions result in insufficient cap room and a shortage of skaters for more than one game, teams can — after the first game of such shortage — recall replacement players provided they have a cap hit less than or equal to the league’s minimum salary plus $100,000, ie. $625,000 in 2012-13.

MORE: CapGeek FAQ explaining how teams receive cap relief during roster emergencies »


RETAINED SALARY TRANSACTIONS

See our separate FAQ entry: How do retained salary transactions work?