What Happens If You're Over the Cap?

[#96 0]

This is probably a stupid question, but with all the cap trouble my boys are in now...

What exactly happens if a team goes over the cap? I know they could just demote a guy to the minors, but let's just say for argument's sake they don't and come the first week of the season, they're over.

Are there fines? Do they have to pick a player to drop who then goes onto the open market? Does a player of choice just get sent to the minors for the year?

[Eazy_b97 1]

It's weird. The answer is that "you can't". Your team can be 10% over until a certain date (I believe the first day or the regular season), but there is no "penalty" they've simply said it won't happen. This is one of the reasons I think NJ was allowed to have Mogilny off their roster and trade cap space in Malakhov. The NHL didn't know what to do. Worst case scenario, I believe their "plan" is to terminate contracts in reverse order they were signed until the team is under the cap. Essentially not accept the signings of certain players.

[#96 0]

Wow. They don't know what to do? So they institute this policy and don't know what to do if it happens. Smart.

Well if they terminate contracts in reverse order, that means players go back onto the open market then I guess.

Interesting scenario. I'd like to see it happen just for entertainment purposes.

[mack 44]

This makes me wonder what the NHL's contingency plan would be, god forbid, if a team's plane went down. I remember the NBA had one and it was basically protecting 2-3 players and the team got to pick from the unprotected.

[RadioGaGa 162]

This makes me wonder what the NHL's contingency plan would be, god forbid, if a team's plane went down. I remember the NBA had one and it was basically protecting 2-3 players and the team got to pick from the unprotected.

Promote the AHL Team?

[#96 0]

This makes me wonder what the NHL's contingency plan would be, god forbid, if a team's plane went down. I remember the NBA had one and it was basically protecting 2-3 players and the team got to pick from the unprotected.

Promote the AHL Team?

That's what I thought happened.

[mack 44]

I guess the Western Conference is strong enough where they could afford that.

[Trooper 8]

From a quick search, here's what Wikipedia has:

Unlike their NFL counterparts, NHL clubs do not have the ability to release players in order to increase their Payroll Room - the remaining salaries of such players would continue to count towards the cap. Besides simply waiting for contracts to expire, the only way a club can normally increase its Payroll Room is to trade one or more higher-salary player(s) to another NHL team for one or more lower-salary player(s).

[mrusse01 0]

This makes me wonder what the NHL's contingency plan would be, god forbid, if a team's plane went down. I remember the NBA had one and it was basically protecting 2-3 players and the team got to pick from the unprotected.

What? When did that happen?

I think if a team exceeds the cap I think the penalty is a fine, but I don't know how the mechanics of it work. Is it a fine per game, do you automatically forfeit if you are over the cap? I dunno. If I get some time tomorrow I'll try and figure it out, I highly doubt they just don't will happen. Although with the NHL who knows. They have those stupid geographical boundary rules which are completely made up and won't hold up in any court of law (and they know it) so who knows what other dumb rules they have.

[Datsyukiandeek 0]

I thought the fine was forfiting draft picks at the leagues picking. Im sure it would be a case by case basis, for instance the Ducks would probably get a hefty penalty just because of their current situation, should Neidermeyer and Selanne return. Im sure the league wouldn't approve a contract to certain teams if they have the chance of going. Say for instance, the Rags decide to throw $8 mill a Yashin(Obviously won't happen).

[Chadd 916]

From a quick search, here's what Wikipedia has:

Unlike their NFL counterparts, NHL clubs do not have the ability to release players in order to increase their Payroll Room - the remaining salaries of such players would continue to count towards the cap. Besides simply waiting for contracts to expire, the only way a club can normally increase its Payroll Room is to trade one or more higher-salary player(s) to another NHL team for one or more lower-salary player(s).

They can demote them to the AHL as well. They have to pay the player but they aren't included in the NHL cap. That's in addition to buying them out and taking the hit over the remaining years of the contract.

Sometimes Wiki has facts, other times it's wrong.

[mack 44]

mrusse:

An NBA team having its plane go down hasn't happened; I had just heard their contingency plan about what would happen if one did.

[DarkStar50 679]

It's weird. The answer is that "you can't". Your team can be 10% over until a certain date (I believe the first day or the regular season), but there is no "penalty" they've simply said it won't happen. This is one of the reasons I think NJ was allowed to have Mogilny off their roster and trade cap space in Malakhov. The NHL didn't know what to do. Worst case scenario, I believe their "plan" is to terminate contracts in reverse order they were signed until the team is under the cap. Essentially not accept the signings of certain players.

The NHL is run by lawyers. Your statement is a bit silly. The CBA would never have been signed by the lawyers for both the NHL and the NHLPA without this very situation explicitly covered. This is the best info I could find.

Originally Posted by CBA

In the event that the System Arbitrator finds that a Circumvention has been committed by a Player or Player Actor, the System Arbitrator may impose any or all of the following penalties and/or remedies set forth below. In the event that the System Arbitrator finds that a Circumvention has been committed by a Club or a Club Actor, the Commissioner may impose any or all of the following penalties and/or remedies set forth below:

"Circumvention" in plain english means going over the cap. According to what it says, any or all of the following may be imposed.

Quote:

Originally Posted by CBA

* Impose a fine of up to $5 million in the case of a Circumvention by

a Club or Club Actor, but in no circumstances shall such fine be

less than $1 million against any Club or Club Actor if such party is

found to have violated Article 50 of this Agreement. If such a fine

is assessed against a Club (except in the case of a financial

reporting violation), that Club's Payroll Room shall also be

reduced by such amount for the following League Year;

* Impose a fine against a Player of up to the lesser of $1 million or

twenty-five (25%) percent of a Player's Paragraph 1 Salary in the

case of a Circumvention by a Player or Player Actor, but in no

circumstances shall such fine be below the lesser of $250,000 or

twenty-five (25%) percent of the Player's Paragraph 1 Salary;

* Direct a Club to forfeit draft picks (the number, placement, and

League Year of which shall be determined in the Commissioner's

sole discretion);

* Declare a forfeiture of any NHL Game(s) determined to have been

affected by a Circumvention;

* Void any SPC, or any extension of an SPC, between any Player

and any Club when both the Player or Player Actor and the Club or

Club Actor are found to have committed such a violation with

respect to such SPC or extension;

* Suspend any Club employee, Player, or Certified Agent involved

in such a violation for a period of time determined in the sole

discretion of the Commissioner, the System Arbitrator, or the

NHLPA, respectively.

[Wolfpack_1986 154]

that only applies to trying to circumvent the Cap in an unscrupulous manner... Devils came close, IMO.

at any rate, contracts are not approved if it brings a team in violation of the cap. Like Mack said, there's a grace period. If the team is unable to get below the Cap by the day of the first game, that team is NOT ALLOWED TO PLAY. then they have to figure out how to get under the cap, before they can ice a team.

[#96 0]

that only applies to trying to circumvent the Cap in an unscrupulous manner... Devils came close, IMO.

at any rate, contracts are not approved if it brings a team in violation of the cap. Like Mack said, there's a grace period. If the team is unable to get below the Cap by the day of the first game, that team is NOT ALLOWED TO PLAY. then they have to figure out how to get under the cap, before they can ice a team.

So they don't play? Ok. So they forfeit games until they are under?

And then...

Fans who bought tix, season tix holders, corporations that bought luxury boxes, concession workers/security/ et. al, get screwed by these forfeited games? I don't think so. The CBA would have to have a provision for a scenario like that where everyone affected gets their money back or something.

I don't think that's it. I think it's like Easy said, they don't really have a contingency plan in place.

[DarkStar50 679]

Why would the CBA between players and owners be responsible to the fans for the fans money? The contingency plan you are looking for is the reality that no team is stupid enough to enter a game over the cap! There is a six point provision that is the contingency plan. Do you think one regular season game is worth any or all of those penalties to one team? I don't think so.

[Ultimus 0]

If the player is over 35, the salary counts if they retire and if they are demoted to the AHL. So in that case simply demoting the player won't work either.

Also, the player would likely have to clear waivers, which they would likely not, unless of course said player is Darian Hatcher.

[Chadd 916]

If the player is over 35, the salary counts if they retire and if they are demoted to the AHL. So in that case simply demoting the player won't work either.

Also, the player would likely have to clear waivers, which they would likely not, unless of course said player is Darian Hatcher.

Mogilny's deal didn't count against the Devils when he was sent down.

[#96 0]

Why would the CBA between players and owners be responsible to the fans for the fans money? The contingency plan you are looking for is the reality that no team is stupid enough to enter a game over the cap! There is a six point provision that is the contingency plan. Do you think one regular season game is worth any or all of those penalties to one team? I don't think so.

My mistake. I shouldn't have put CBA in and just left it as a "contigency plan". Still, take CBA out if you want. Nobody has put forth a good explanation.