mouser
Business of Hockey
A couple of years ago the Bruins had to put Marc Savard on LTIR to be cap compliant but I believe what happens is that they lose the ability to bank cap space for the entire year. That means any trade deadline deal has to have the same amount of money going out as what they are getting in return. Teams that have $2 million in cap space have the ability to acquire a $6 million contract at the deadline because that player's salary has less than $2 million remaining on it for the year, it also means that it is very difficult to replace players who are out with things like the flu or that are out day to day. I think there may be a provision where they can recall someone on an emergency basis but they have to clear it with the league every time they do it and it is not as simple as just calling up a player.
I believe the way it works is that if they put someone on LTIR at the beginning of the season and it puts them at $1 million over the cap, then that is all they will be able to exceed the cap by for the entire season since LTIR only allows the team to replace the injured players salary, it does not allow them to exceed the cap by the full amount of the salary. Having a player on before the season kind of sets the amount that they can go over the cap in stone if I understand it correctly.
Correct. This is one of the key elements many folks often misunderstand. If for example, a team has a player on a $6m contract go on LTIR Exception that doesn't mean the team can then exceed the salary cap by $6m. It means the team can replace that player's $6m cap hit with one or more other players making $6m or less, even if it causes the team to exceed the salary cap. The amount by which the team can exceed the salary cap depends on what the collective team cap was at the time the LTIR Exception was exercised.
Note: My example is for in-season only use of the Exception. Using it before the start of the season works differently.