New CBA Details
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01-13-2013, 10:38 AM
Join Date: Nov 2005
New CBA Details
A few details off the new CBA:
MINIMUM NHL SALARY
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 ]
So in 2012-2013, Salaries under 900k in the AHL do not apply to the cap. 2013-14, 925k (minimum salary above plus 375k)
Reentry waivers have been eliminated in the new CBA.
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.
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.
CAP ADVANTAGE RECAPTURE (Roberto Luongo Rule)
Teams receiving a “cap advantage” from long-term contracts — defined as seven years or more — will be penalized in the event the player retires or “defects” from the NHL before the contract expires. A team receives a “cap advantage” when the player’s actual salary exceeds his cap hit in a given year.
Following retirement/defection, the “advantage” will be “recaptured” and charged against the club’s cap in equal amounts each year until the contract expires. This penalty applies to any team that received a cap advantage from the contract — ie. a traded contract — except in the event that the trade occurred prior to the new CBA coming into place in January 2013.
Since Brad Richard's contract exceeded 7 years (9 years), his contract will be subject to "cap advantage recapture."
RETAINED SALARY TRANSACTIONS
Teams can retain a percentage of a contract’s remaining cap hit, salary and bonuses in trades. The following stipulations apply:
No more than 50 per cent of the salary/cap hit can be retained
Salary/cap hit cannot be retained on more than three contracts in one season
The aggregate cap hits retained cannot exceed 15 per cent of the upper limit
A contract can be traded only twice where salary/cap hit is retained
More details available at the following link:
MOD EDIT: The official Memorandum of Understanding (MOU) via RangerBoy's link:
Last edited by Jabroni: 01-13-2013 at
. Reason: Added MOU link.
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