That's right, too.philou21 wrote:I think they embarrassed themself more when they said "We're gonna investigated Luongo, Hossa contracts. If they're find guilty contract would be cancelled." Wich not happen as I expected but still, they clearly admit they make faults in the pass. That's not looking like a professional hockey league to me.
1. While players and clubs can continue to negotiate long-term contracts (five years or longer) that include contract years in a player's 40s, for purposes of salary-cap calculation the contract will effectively be cut off in the year of the contract in which the player turns 41.
This basically means that if a 33-year-old player signs an eight-year contract, the amount owed to him in the first seven years of the contract will be averaged for the purposes of salary-cap computation. Then, in Year 8 of the contract, the salary he will make for that particular season will determine his salary-cap hit for that season.
So, if Kovalchuk's contract applied to this rule, the average of what he's owed in the first 13 years would be applied to the Devils salary cap from 2010-2023 and the cap hit would be $7.15 million because he is reportedly due to make $93 million across that span. Then, per the reported terms, the cap hit would change to $3 million in 2023-24 (as Kovalchuk turns 41 in April of that season) and $4 million in 2024-25.
2. In any long-term contract that averages more than $5.75 million for the three highest-compensation seasons, the cap charge will be a minimum of $1 million for every season in which the player is 36-39 years of age. That $1 million value will then be used to determine the salary cap hit for the entire contract. If the contract takes the player into his 40s, the previous rule goes into effect.
For example, Savard's contract reportedly calls for him to make $525,000 per season in the final two years of his seven-year, $28 million deal. He will be 38 and 39 in those seasons. If his contract was subject to these new regulations, for purposes of calculating the salary cap the final two years on his deal will reflect as if he was making $1 million. That would make his reported $4 million cap hit go up to $4.14 million.
The club and player still can agree to a contract that pays a player less than $1 million when he is at those ages, but for salary-cap purposes the number applied to the team's annual average salary will be $1 million.
