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What Exactly Happens When a Team Goes Over The Salary Cap?

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Old
07-11-2013, 10:20 PM
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50MissionCap
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What Exactly Happens When a Team Goes Over The Salary Cap?

I've been wondering this ever since the Salary Cap came in. What exactly happens if your team is over it? Do they not play? Do they get fined heavily?

Is there a significant disadvantage to being over the cap, or is it just a light to moderate issue?

I'd appreciate anything you guys can tell me.

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07-11-2013, 10:24 PM
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MountainHawk
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The Central Registry/League Office will just deny any move that will put you over the cap during the season.

Not sure what the consequence is for not being under on day 1 --- game forfeitures and severe fines/loss of picks?

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07-11-2013, 11:53 PM
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Fugu
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In addition to the above, I think kdb's pat answer was, "We don't know."

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07-12-2013, 12:25 AM
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Originally Posted by 50MissionCap View Post
What exactly happens if your team is over it?
A bell tinkles, and an angel gets its wings?

I'm hoping it happens this year, so kdb can get his definitive answer.

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07-14-2013, 10:44 AM
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Mr Atoz*
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Something like this only it looks like Gary Bettman.


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07-14-2013, 10:52 AM
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Sloth Slothersons*
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SAW happens.

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07-14-2013, 11:15 AM
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boynickname
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SAW happens.
hahahahaha.....ouch

Good question and I hope we get a answer

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07-14-2013, 11:54 AM
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PuckHogs29
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I can't remember all the details but the Devils had to go through some ridiculous circumstances in 2010 to not go over the cap, including starting the season with 20 players on the active roster and having to play shorthanded when PL3 got suspended because of no cap room for call-ups.

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07-14-2013, 10:44 PM
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I was under the impression that a team forfeits the amount gone over the cap in the following year. I believe the Flames went over the cap several years back by a couple hundred thousand, so the cap was reduced for the Flames by the same amount the following season. It was the year they went into the playoffs and we so injured they had to ice a reduced roster

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07-14-2013, 11:51 PM
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kdb209
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Quote:
Originally Posted by MarkGio View Post
I was under the impression that a team forfeits the amount gone over the cap in the following year. I believe the Flames went over the cap several years back by a couple hundred thousand, so the cap was reduced for the Flames by the same amount the following season. It was the year they went into the playoffs and we so injured they had to ice a reduced roster
No. That is only true if a team goes over the cap due to Performance Bonuses. A team is permitted to exceed the cap by up to 7.5% due to Performance Bonuses. The total of all possible bonuses (earned or not) are included in the averaged value for the cap. If the actual bonuses earned result in the team exceeding the Upper Limit, then that excess is applied against the next season's cap.

To go back to the original question. During the season it is impossible for a team to go over the cap (except for the Performance Bonus Cushion and LTIR). The League will simply reject any transaction that causes a team to exceed the Upper Limit.

The only gray area is what happens if a team does not get itself cap compliant at the start of the regular season - the team is allowed to exceed the cap by 10% during the offseason. The League has no power to void any contracts or retroactively reject off-season transactions which were cap legal at the time.

What the League could do is treat this as a prima facie example of Cap Circumvention, initiate Article 26 proceedings,and ultimately subject the team to all the sanctions available there - up to $5M in fines (which count against the cap), forfeiture of draft picks, suspension of the GM, etc. Of course, since no team has refused to become cap compliant by opening day - so the answer does officially remain "we don't know".


Last edited by kdb209: 07-15-2013 at 01:40 PM.
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07-14-2013, 11:55 PM
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cptjeff
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Quote:
Originally Posted by MountainHawk View Post
The Central Registry/League Office will just deny any move that will put you over the cap during the season.

Not sure what the consequence is for not being under on day 1 --- game forfeitures and severe fines/loss of picks?
"Bettman smash" is the answer. Seriously, I'm pretty sure it just defaults to the commissioner's office to figure out the appropriate penalty. I suspect that he'd try to stay consistent with the 1st round pick forfeit he imposed on the Devils, since that's the only cap related penalty we've seen so far.

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07-15-2013, 12:01 AM
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Killion
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Originally Posted by kdb209 View Post
Of course, since no team has refused to become cap compliant by opening day - so the answer does officially remain "we don't know".
Oh? Louie Lamoriello knows kdb. Get back to me when you get
over your definitive posts on the subject & maybe we can chat.

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