Around the NHL: PTO Season Becomes Waiver Season

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oh boy, the Devils are looking how I expected us to look if we made it, yeesh
Devils goaltending was always going to be their weakness. Well, that and their inexperience. If they got solid goaltending and build off of this year, they could be scary for a few years to come. That said, it wouldn't shock me if they regress next season.

I get that it's fun to point and laugh at the leafs. But with recent history what it is, I much more enjoy watching Tampa and their scummy asses get their shit kicked in
I just need tampa to make short business of toronto, this series, and then I can go back to hating tampa and their dirtball antics.
 
How is this any different from a luxury tax? If these players are eligible to play, then the cap doesn’t really have any meaning, does it?
It’s not a tax. I don’t know why the article describes it as a penalty either.

It’s a deferred cap hit. Bergeron/Krecji earned performance bonuses totaling 4.5mil. That amount will go against the Bruins cap for next season.
 
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I just love what Boston looks like without Bergeron.


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It’s not a tax. I don’t know why the article describes it as a penalty either.

It’s a deferred cap hit. Bergeron/Krecji earned performance bonuses totaling 4.5mil. That amount will go against the Bruins cap for next season.
That isn't correct. The overage does not count as part of the team's cap hit next season. Rather, the team's upper limit (the cap ceiling, in other words) is reduced by the amount of the overage. So, if the salary cap next season is the currently projected $83.5M, then Boston's cap will be at $79M accounting for the overage.
 
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That isn't correct. The overage does not count as part of the team's cap hit next season. Rather, the team's upper limit (the cap ceiling, in other words) is reduced by the amount of the overage. So, if the salary cap next season is the currently projected $83.5M, then Boston's cap will be at $79M accounting for the overage.
I have the mechanics of it wrong. But it works out to roughly the same thing for all intents and purposes. They have 4.5mil less to work with because their bonus cap hits are being applied to next season.
 
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How is this any different from a luxury tax? If these players are eligible to play, then the cap doesn’t really have any meaning, does it?
Because those contracts are only available to players of a certain age. It's a way to fight "ageism" in the league that is more and more going younger. You never know when a player will hit the wall due to age. This gives teams incentive to sign older players that might not get offers due to their age.

And.... the cap has meaning. I mean, they're getting a cap penalty because those players played. There is a penalty for signing them and having the players produce.
 
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Because those contracts are only available to players of a certain age. It's a way to fight "ageism" in the league that is more and more going younger. You never know when a player will hit the wall due to age. This gives teams incentive to sign older players that might not get offers due to their age.

And.... the cap has meaning. I mean, they're getting a cap penalty because those players played. There is a penalty for signing them and having the players produce.

It's all a way to get older UFA's under the cap while adding bonuses that are very achievable that the player should be able to hit, knowing it will cost the team cap space the next season. They had a great article in The Athletic recently about how Bergeron coming back and then him getting Krejci back and how the team made it work.


Because they were 35 or older when they signed their one-year contracts, Bergeron and Krejci were eligible for performance bonuses. Their deals included easily attainable sums: $2.5 million for Bergeron for appearing in 10 or more games in 2022-23, $2 million for Krejci ($1 million for playing in 10 games; $500,000 for appearing in 20 games; $500,000 if the Bruins qualified for the playoffs).

By kicking a $4.5 million bonus can down the road, Sweeney locked up the two for a $3.5 million cap hit ($2.5 million for Bergeron, $1 million for Krejci) in 2022-23. The dividends of that total literally started the day they signed. Also on Aug. 8, the Bruins signed Zacha, acquired the month before from the Devils for Erik Haula, to a one-year, $3.5 million contract. By doing so, the Bruins avoided an arbitration hearing, which was scheduled for three days later.

Their meager cap hit also helped the Bruins open the regular season without using long-term injured reserve (Marchand, Matt Grzelcyk and Charlie McAvoy were all unavailable) as a compliance mechanism. This way, the Bruins could start tolling available cap space immediately in anticipation of trades to come.
 
I have the mechanics of it wrong. But it works out to roughly the same thing for all intents and purposes. They have 4.5mil less to work with because their bonus cap hits are being applied to next season.
There are differences, though. As I read the CBA, the club's Upper Limit being lowered means that numbers like the off-season cap, and the bonus cushion, are also lowered for that team, as they are defined as a percentage of the Upper Limit. Meaning that if a team hits a performance bonus overage one season, they will have less flexibility regarding performance bonuses the following season. On the other hand if the overage were a cap charge, those numbers would be unaffected.
 
There are differences, though. As I read the CBA, the club's Upper Limit being lowered means that numbers like the off-season cap, and the bonus cushion, are also lowered for that team, as they are defined as a percentage of the Upper Limit. Meaning that if a team hits a performance bonus overage one season, they will have less flexibility regarding performance bonuses the following season. On the other hand if the overage were a cap charge, those numbers would be unaffected.
Thanks for further clarification.
 
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There are differences, though. As I read the CBA, the club's Upper Limit being lowered means that numbers like the off-season cap, and the bonus cushion, are also lowered for that team, as they are defined as a percentage of the Upper Limit. Meaning that if a team hits a performance bonus overage one season, they will have less flexibility regarding performance bonuses the following season. On the other hand if the overage were a cap charge, those numbers would be unaffected.
I'm guessing the mechanism is written the way it is mostly because of the cap floor, so a team can't use bonuses earned in one year to reach the cap floor the following year.
 
I have the mechanics of it wrong. But it works out to roughly the same thing for all intents and purposes. They have 4.5mil less to work with because their bonus cap hits are being applied to next season.
If the cap stayed flat, yes (aside from the offseason and following year's performance bonus reduction nuances @dotcommunism noted)
I'm guessing the mechanism is written the way it is mostly because of the cap floor, so a team can't use bonuses earned in one year to reach the cap floor the following year.
Not necessarily because of the cap floor (such scenario would be rare indeed that a team would sign a contract the year before knowing they may "need" the performance bonuses the following year to reach the cap floor), but as a way to both enable and perhaps entice older players to sign 1-yr deals. It's a way for a player to bet on himself and for a team to "reduce risk" (depending how they structure the deal).

@dotcommunism
Are only "skaters" >35yo eligible for the incentive deals, or goalies too? I don't think goalies are. I know players who had substantial injuries the preceding season are eligible for incentive deals as well.

As an aside, these posts and the injury exception for performance bonuses made me think of the Teppo Numinen heart issue and him returning for the final game of the year vs. Boston. What an odd/rare situation that was.
 
Crazy that the last time the Bruins played a playoff game without either Krejci or Bergeron was April of 2003. Buffalo has had three different owners in that time.
 
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I'm guessing the mechanism is written the way it is mostly because of the cap floor, so a team can't use bonuses earned in one year to reach the cap floor the following year.
Considering that a team can only have an overage if they're above the cap ceiling, I'd say that's unlikely. You don't really see teams go from above the cap one year to below the floor the next. You especially don't usually see teams planning on doing that.

@dotcommunism
Are only "skaters" >35yo eligible for the incentive deals, or goalies too? I don't think goalies are. I know players who had substantial injuries the preceding season are eligible for incentive deals as well.
There are no positional restrictions regarding performance bonuses. Eligible players are:
1) ELC players
2) 35+ year old players, on one-year contracts
3) players with 400+ games either on the active roster, or on injured reserve, or other non-roster designations, spent 100+ days on injured reserve the previous season that they were signed to an NHL contract, and are on a one-year contract
 
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