2013 NHL-NHLPA CBA

[Frederick Stanley]

Stupid question incoming.

Let's say, a team signs a player to an entry leven contract and then puts him into the AHL. The contract does not count against the cap and the contract automatically extends one year, unless the player plays in 10 or or more games in the NHL?

 

[cheswick]

Stupid question incoming.

Let's say, a team signs a player to an entry leven contract and then puts him into the AHL. The contract does not count against the cap and the contract automatically extends one year, unless the player plays in 10 or or more games in the NHL?

ELC are by definition 2 way, and have a fairly low earnings in the AHL so it doesn't count against the cap.

Depends on the age of the player when he signed the contract. If signed at age 18, the contract can slide two times. If signed at 19, it can slide one time. 20+ it cannot slide at all.

Of course this would really only apply to College or players drafted out of Europe. In most cases players out of the CHL must be assigned to their junior team in the years that their contract can slide.

 

[LadyStanley]

And slide only happens if player is 18-19 and in CHL/Europe. Otherwise, a year is burned.

 

[Rebuilt]

And slide only happens if player is 18-19 and in CHL/Europe. Otherwise, a year is burned.

Ah! That explains why Nylanders contract didnt burn a year. He played in the SHL until some point where his ELC was retained then went to the Marlies.

 

[mouser]

And slide only happens if player is 18-19 and in CHL/Europe. Otherwise, a year is burned.

Ah! That explains why Nylanders contract didnt burn a year. He played in the SHL until some point where his ELC was retained then went to the Marlies.

Slide can happen also for a player sent to the AHL. Or any other league that is not the NHL.

We're just not used to seeing it happen that often with the AHL due to the NHL/CHL transfer agreement that keeps players drafted from the CHL being sent to the AHL before they're 20 or played 4 CHL seasons.

 

[Lunatik]

Slide can happen also for a player sent to the AHL. Or any other league that is not the NHL.

We're just not used to seeing it happen that often with the AHL due to the NHL/CHL transfer agreement that keeps players drafted from the CHL being sent to the AHL before they're 20 or played 4 CHL seasons.

Emile Poirier had his slide while playing in AHL due to his late birthday

 

[These Are The Days]

I can't help but get the feeling we're gonna be headed to another lockout. I fear that salaries are going to skyrocket out of control soon and the cap isn't growing fast enough to accommodate as well. A lot of teams are going to get handcuffed soon. My Lightning included

 

[Nalens Oga]

I can't help but get the feeling we're gonna be headed to another lockout. I fear that salaries are going to skyrocket out of control soon and the cap isn't growing fast enough to accommodate as well. A lot of teams are going to get handcuffed soon. My Lightning included

Do people never learn this, what does individual salaries have to do with it. At the end of the day, the PA gets a certain slice of the pie and if they overpay based on numbers alone, they won't get any more of that pie because of escrow.

We are headed towards another lockout anyways though because of the hardline and lack of compromise from the NHL during the past lockout, they're gonna want an even bigger slice of the pie next time and the PA probably won't have it.

 

[Ciao]

Do people never learn this, what does individual salaries have to do with it. At the end of the day, the PA gets a certain slice of the pie and if they overpay based on numbers alone, they won't get any more of that pie because of escrow.

We are headed towards another lockout anyways though because of the hardline and lack of compromise from the NHL during the past lockout, they're gonna want an even bigger slice of the pie next time and the PA probably won't have it.

You go back to what worked before -- for the NHL, a lockout.

Why not get another helping of dessert?

 

[nullmeatbag]

I was reading over 50.5 (h) recently and am now confused as to how bonuses count against the cap.

It mentions that performance bonuses are "included as fully earned, but then that "the cash amount of any Performance Bonuses contained in an SPC that becomes impossible to earn in a given League Year shall, at that time, be deducted from the Club's Averaged Club Salary".

Then, in section (iii), it says that bonuses actually earned are then applied to the teams' Averaged Club Salary at the conclusion of the season.

To me, this makes it seem like a team is penalized for bonuses twice - the first being "included as fully earned" against a team's Averaged Club Salary, then again at the end of the season if it has been actually earned.

The other question I have is about this clause: "Bonuses...that become impossible to earn in a given League Year shall, at that time, be deducted from the Club's Averaged Club Salary." That deduction would be pro-rated for the number of days the player was on the roster, no?

Can anyone clear this up for me?

Thanks!

 

[mouser]

I was reading over 50.5 (h) recently and am now confused as to how bonuses count against the cap.

It mentions that performance bonuses are "included as fully earned, but then that "the cash amount of any Performance Bonuses contained in an SPC that becomes impossible to earn in a given League Year shall, at that time, be deducted from the Club's Averaged Club Salary".

Then, in section (iii), it says that bonuses actually earned are then applied to the teams' Averaged Club Salary at the conclusion of the season.

To me, this makes it seem like a team is penalized for bonuses twice - the first being "included as fully earned" against a team's Averaged Club Salary, then again at the end of the season if it has been actually earned.

50.5(h)(iii) Is the process to determine if there is a bonus overage that would carry over to the next season. It doesn't actually say "added to" Averaged Club Salary. It says "charged against" Averaged Club Salary. I would read this section as effectively saying that Averaged Club Salary was accruing the space to pay the potential bonuses throughout the season. At the end of the season the actual bonuses earned are tallied and charged against the accrual.

The other question I have is about this clause: "Bonuses...that become impossible to earn in a given League Year shall, at that time, be deducted from the Club's Averaged Club Salary." That deduction would be pro-rated for the number of days the player was on the roster, no?

Can anyone clear this up for me?

Thanks!

It would make sense that the credit is pro-rated. It would also make sense to proportionally apply the deduction if say a player was traded during the season. Though as you point out the CBA doesn't explicitly explain how it handles those situations.

 

[LadyStanley]

I was reading over 50.5 (h) recently and am now confused as to how bonuses count against the cap.

It mentions that performance bonuses are "included as fully earned, but then that "the cash amount of any Performance Bonuses contained in an SPC that becomes impossible to earn in a given League Year shall, at that time, be deducted from the Club's Averaged Club Salary".

A number of players get bonuses in their contract based on performance, e.g., games played, assists, goals scored, etc.

So, if there's a bonus for 70 games played, and the player is out (scratched, suspended, injured, etc.) for 13 or more games, that bonus won't be paid. Therefore, that bonus would be deducted based on the $$ for that 70 games played once the 13th game is missed.

 

[tsanuri]

A number of players get bonuses in their contract based on performance, e.g., games played, assists, goals scored, etc.

So, if there's a bonus for 70 games played, and the player is out (scratched, suspended, injured, etc.) for 13 or more games, that bonus won't be paid. Therefore, that bonus would be deducted based on the $$ for that 70 games played once the 13th game is missed.

I don't even think that is exactly true. Last year the Kings ran into a problem doing a call up because of his potential bonuses. And it was reported at the time they were unattainable. But because of them they couldn't call up the player they wanted.

 

[mouser]

I don't even think that is exactly true. Last year the Kings ran into a problem doing a call up because of his potential bonuses. And it was reported at the time they were unattainable. But because of them they couldn't call up the player they wanted.

Can you provide any more detail on that situation? Doesn't seem like ELC bonuses should have been an issue with LA.

Also could matter if the bonuses were impossible to obtain vs incredibly unlikely to obtain.

 

[tsanuri]

Can you provide any more detail on that situation? Doesn't seem like ELC bonuses should have been an issue with LA.

Also could matter if the bonuses were impossible to obtain vs incredibly unlikely to obtain.

I can't find the stuff. I tried searching but nothing came up.
I just remember it being said one way and yes it could have been the other. But it was during the time that Voynov was suspended with pay and his cap was counting against the team. It was one of those things they were very close like within 10K of it. And then the league gave them some breathing room by saying he could count as LTIR.

 

[kdb209]

I don't even think that is exactly true. Last year the Kings ran into a problem doing a call up because of his potential bonuses. And it was reported at the time they were unattainable. But because of them they couldn't call up the player they wanted.

Can you provide any more detail on that situation? Doesn't seem like ELC bonuses should have been an issue with LA.

Also could matter if the bonuses were impossible to obtain vs incredibly unlikely to obtain.

I can't find the stuff. I tried searching but nothing came up.
I just remember it being said one way and yes it could have been the other. But it was during the time that Voynov was suspended with pay and his cap was counting against the team. It was one of those things they were very close like within 10K of it. And then the league gave them some breathing room by saying he could count as LTIR.

It's possible that those bonuses were Games Played Bonuses, which are separate from ELC Exhibit 5 Performance Bonuses and always charged against the cap at their full value.

 

[nullmeatbag]

It's possible that those bonuses were Games Played Bonuses, which are separate from ELC Exhibit 5 Performance Bonuses and always charged against the cap at their full value.

What exactly are the differences between Exhibit 5s and Games Played Bonuses in terms of how they're applied to the cap? Do you mean the Games Played Bonuses simply do not get 'deducted' from the Club's Average Salary as Performance Bonuses do as described in 50.5(h)?

 

[kdb209]

What exactly are the differences between Exhibit 5s and Games Played Bonuses in terms of how they're applied to the cap? Do you mean the Games Played Bonuses simply do not get 'deducted' from the Club's Average Salary as Performance Bonuses do as described in 50.5(h)?

A Games Played Bonus is different than a Performance Bonus. It is treated just like Salary - the full value counts, whether earned or not. The full value is included in the ELC max salary limits and is included when calculating the average annual value for cap hits. It cannot be included under the 7.5% Performance Bonus Cushion and there is no cap hit reduction if it becomes impossible to earn.

Games Played Bonuses are limited to only these games played thresholds: (i) 5 games played, (ii) 10 games played, and (iii) more than 10 games played.

9.3 Entry Level Compensation Limits.

(a) The maximum annual aggregate Paragraph 1 NHL Salary, Signing Bonuses and
games played bonuses permitted to be paid to a Group 1 Player in each League Year of his first
SPC shall be as follows:

Draft Year NHL Compensation
2005 US$ 850,000
2006 US$ 850,000
2007 US$ 875,000
2008 US$ 875,000
2009 US$ 900,000
2010 US$ 900,000
2011 - 2022 US$ 925,000

For example, an 18 year old Player drafted in 2013 and signing an SPC at the age of 19 must
sign a three-year SPC, with a maximum compensation of U.S. $925,000 per League Year.

(b) The aggregate of all Signing Bonuses attributable to any League Year to be paid
to a Group 1 Player may not exceed 10% of the Player's compensation for such League Year.
Games played bonuses attributable to a League Year shall be included in compensation for that
League Year at their full potential value (i.e., assuming all such bonuses are earned) and shall be
treated as Paragraph 1 NHL Salary. A Group 1 Player may not contract for or receive any
bonuses whatsoever other than a Signing Bonus, a games played bonus and Exhibit 5 Bonuses.

 

[nullmeatbag]

Awesome - thanks so much to all for the detailed explanations!

 

[me2]

What is cap hit from a buyout of an ELC? Cost would be 1/3 clause because of age. Is the amount paid/cap hit worked off the NHL or the AHL pay?

 

[mouser]

What is cap hit from a buyout of an ELC? Cost would be 1/3 clause because of age. Is the amount paid/cap hit worked off the NHL or the AHL pay?

It would be the NHL pay. Which is why no team would ever buyout an ELC.

 

[me2]

It would be the NHL pay. Which is why no team would ever buyout an ELC.

Thanks

 

[Fourier]

A Games Played Bonus is different than a Performance Bonus. It is treated just like Salary - the full value counts, whether earned or not. The full value is included in the ELC max salary limits and is included when calculating the average annual value for cap hits. It cannot be included under the 7.5% Performance Bonus Cushion and there is no cap hit reduction if it becomes impossible to earn.

Games Played Bonuses are limited to only these games played thresholds: (i) 5 games played, (ii) 10 games played, and (iii) more than 10 games played.

Thanks kdb. I never knew this little gem.

 

[Faltorvo]

ackkk helppppp

I have run into a cba issue

is there a limitation on how many buy out cap hits can be running at the same time

on any given team?

I know about cap retention 3 but buy outs ?

 

[Fugu]

ackkk helppppp

I have run into a cba issue

is there a limitation on how many buy out cap hits can be running at the same time

on any given team?

I know about cap retention 3 but buy outs ?

There is no limit over the term of the CBA on normal course buy-outs, except for those outside the regular period:

11.18 Ordinary Course Buy-Outs Outside the Regular Period. Clubs shall have the right to
exercise Ordinary Course Buy-Outs outside the regular period for Ordinary Course Buy-Outs in
accordance with Paragraph 13(c)(ii) of the SPC. Each Club shall be limited to no more than
three (3) such Buy-Outs outside the regular period over the term of this Agreement pursuant to
Paragraph 13 of the SPC. However, in the event that a Club has only one salary arbitration
hearing pursuant to Section 12.3(a) in a given League Year, such Club shall not be entitled to
exercise such an Ordinary Course Buy-Out outside the regular period. Moreover, a Club shall
not be entitled to exercise an Ordinary Course Buy-Out outside the regular period for: (i) any
Player who was not on the Club's Reserve List as of the most recent Trade Deadline, or (ii) any
Player with an Averaged Amount less than $2,750,000. The dollar amount of $2,750,000 set
forth in this Section 11.18 shall be increased on an annual basis at the same percentage rate of
annual increase as the Average League Salary, with the first such increase occurring based upon
a comparison of the 2014/15 Average League Salary to the 2013/14 Average League Salary. By
way of example, if the Average League Salary for the 2014/15 League Year has increased by ten
(10) percent from the Average League Salary for the 2013/14 League Year, then the figure of
$2,750,000 stated in Section 11.18, shall be increased by ten (10) percent to $3,025,000.