Setting the salary cap and floor is always tricky. I have to factor in things like league financial growth, the rate of increase of the real NHL levels, RFA re-sign impacts, and also trying to decrease the gap between the cap and floor. This year it's a little harder that the NHL froze the cap and floor levels for next season, although they've set enough of a pattern that I can create something logical.
The calculations leads to a cap somewhere between $74,000,000 and $75,000,000. That was a bit surprising to me because I did not expect the cap to move up very much at all for next season. $74,000,000 seemed like the highest I anticipated. However, after looking at a handful of teams so far, it seems this is going to be a big offseason for RFAs coming off of entry-level contracts. Many teams will be adding to their payroll even without considering UFAs. So it is possible the cap could be closer to $75 million. At this point, I can't rule it out. It also seemed for sure that the floor would be $48,000,000 but with the potential for a higher cap number, it's also possible the floor could be just under $49 million.
It will be so much easier for me to look at this once the playoffs conclude. But I know some of you are interested in getting at least estimations for when trading resumes in the offseason, so I figure I'd let you know the range it seems we're heading towards.
2020-21 Salary Cap & Floor Levels
Re: 2020-21 Salary Cap & Floor Levels
I can now confirm that this season's salary cap will rise to $75 million for the 2020-21 season.
The salary floor will also rise and is expected to be $48.4 million. I thought the floor would be slightly higher but we'll roll with this.
I can also announce that the maximum yearly player salary is being increased to $10,500,000.
You should always be at least $5 million above the salary floor to guard against anyone who may retire instantly and to also give yourself enough leeway to make trades. Do not wait for unrestricted free agency to try to get compliant with the floor! Signing depth players to big money just to reach the floor is a good way of getting yourself into even worse trouble next offseason!
The salary floor will also rise and is expected to be $48.4 million. I thought the floor would be slightly higher but we'll roll with this.
I can also announce that the maximum yearly player salary is being increased to $10,500,000.
You should always be at least $5 million above the salary floor to guard against anyone who may retire instantly and to also give yourself enough leeway to make trades. Do not wait for unrestricted free agency to try to get compliant with the floor! Signing depth players to big money just to reach the floor is a good way of getting yourself into even worse trouble next offseason!