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What is the link between LTIR and bonus overages?
LTIR relief only kicks in when a team is at the CAP. Ie if the cap is 64.3M and you have a player with a $4M cap hit on LTIR for the entire season. Your new total cap hit including the guy on LTIR is 66.3M so 2 million over before LTIR. That 66.3M includes a guy who's cap hit is $2m but 1 million is bonus? Assume the bonus is earned
How much cap relief do you get from the guy on injured reserve assuming no roster changes. LTIR relief is only for the excess but is it
a) 2m (66.3-64.3)
b) 1m with a 1m bonus overage for next year. ie salary cap $ excluding bonus - 64.3
I think it might be option B from reading the CBA but I am not sure. If that is the case then teams like Mtl and Toronto with guys using LTIR and significant bonus dollars (galchenyuk and Reilly) who are right up against the cap could be hit with a significant bonus overage hits next year.
you had a hard time understanding it? one of us may have had to many beers tonight (I didn't have any but the new baby woke up half way through me writing it) I saw that on Capgeek and read the CBA and was more confused. It seems like that is the case and its option B. If it is the case, have the bruins messed up? Iginla's contact is 1.8M plus 4.2 of bonus. If that is the case they just negated the effect of Savard's LTIR and will start next year with a massive overage carryover. Hamilton is part bonus as well I think.
Edit2: It makes you wonder why Boston would have structured the Iginla contract that way? They are essentially forgoing the benefit of part of Savards LTIR for the sake of a bit more flexibility this year and a lot less next year.
2 Answers
- 7 years agoFavorite Answer
Teams requiring long-term injury relief to fit a roster under the salary cap throughout the season can be at risk of ending up with a bonus overage. For teams in these positions with players earning performance bonuses, those bonuses are tacked onto their final cap payroll as an overage and carried forward as a penalty the following season.
CBA Section 50.10 (d) (P. 226-231)
I am not sure if this answers your question...I had a hard time understanding the Q....I think that answers what you are asking lol
- tomjc43Lv 77 years ago
The articles 50.5 h (iii) (iv) cover the situation. At season's end all a teams salary cap monies are tabulated minus the day to day total IR relief. Then Bonus payments are made and any overage is applied to next years cap. As you see Boston has a $65.9 MM cap hit and approx. $4MM in LTIR for Savard. They also have $5.6MM in bonuses to Hamilton Iginla and Krug. At present they are carrying about $2MM in freeboard (thanks to Savard) so they can pick up TDL players for the push for the playoffs. But with all things being equal if the cap doesn't go up significantly next year look for a yard sale at 100 Legends Way.
