After years of modest to no increases to the salary cap, the NHL is projecting a big bump next season as it finally fully recovers economically from the pandemic era.
Sportsnet’s Elliotte Friedman is reporting that the NHL is estimating that the 2024-25 salary cap will be $87.675 million, a rise of $4.175 million. It would be one of the largest jumps of the salary cap era.
Cap estimate next year given at BoG is approx $87.675M
— Elliotte Friedman (@FriedgeHNIC) December 5, 2023
The salary cap this season is $83.5 million after jumping up a million from the year before. The cap was flat and sat at $81.5 million for three consecutive seasons before that.
Salary Cap increases
2023-24: $87.675 million
2022-23: $83.5 million
2021-22: $81.5 million
2020-21: $81.5 million
2019-20: $81.5 million
2018-19: $79.5 million
2017-18: $75 million
The reason for the big increase is due to the NHL paying off a $1.5 billion debt it accumulated due to pausing the 2019-20 season because of the COVID-19 pandemic. The payments are scheduled to conclude in 2024.
The Washington Capitals are one team that could greatly benefit from this. The team will already have the cap hits of unrestricted free agents Max Pacioretty ($2 million), Anthony Mantha ($5.7 million), Joel Edmundson ($1.75 million), and Nicolas Aube-Kubel ($1.225 million) coming off the books. Nicklas Backstrom, who recently stepped away from the team, also sits on long-term injured reserve. If the Swedish legend does not end up returning in the final year of his deal and remains on LTIR, that would free up another $9.2 million.
[Editor’s note: The only potential cap carryover would be Pacioretty’s $2 million in performance bonuses if he hits all of them this season. Pacioretty will get $1 million if he plays 10 games, an additional $500k if he plays 15 games, and another additional $500k if he plays 20 games. All of that will kick in on next year’s cap if he reaches those milestones and the Capitals finish the year using Backstrom’s LTIR space, which they appear likely.]
Combined with the salary cap increase, general manager Brian MacLellan could basically have $24.05 million to play with before any Pacioretty-related overages. The only three significant restricted free agents MacLellan would need to sign to somewhat significant raises would be: Connor McMichael, Rasmus Sandin, and Aliaksei Protas. Matthew Phillips, Beck Malenstyn, and Lucas Johansen are also RFAs.
While the Capitals are in a period of transition, they could avoid an all-out rebuild in the coming years if they bring in the right players. And, increased salary cap flexibility will allow them to do that. For example, given the recent rumors surrounding the Capitals and Blue Jackets, a larger cap hit like Patrik Laine’s $8.7 million will be much more palatable for MacLellan and staff.
The upcoming, unrestricted free agency class is also currently chock full of prime NHL contributors. Names like Steven Stamkos, William Nylander, Sam Reinhart, Jake Guentzel, Teuvo Teravainen, Brady Skjei, Vladimir Tarasenko, Jonathan Marchessault, Elias Lindholm, Noah Hanifin, Tyler Toffoli, Brett Pesce, etc. are all still without a deal for next season.
Headline photo: Katie Adler/RMNB
