The NHL salary cap for the 2016-17 season will be $73 million, the league and NHL Players' Association announced Tuesday. That number is up from the previous $71.4 million. In addition, the cap floor has been raised from $52.8 million to $54 million.
With the weak Canadian dollar, there was a chance the salary cap could have gone down. In response, players elected to use their 5 percent escalator clause. The result is a higher cap and a higher escrow.
Had they not put in any growth factor at all, the cap would have gone down— Pierre LeBrun (@PierreVLeBrun) June 22, 2016
With 16% escrow! Between income tax and escrow, many players lose 65%+ from face value of contract. https://t.co/uIIE0wmyJ9— Allan Walsh (@walsha) June 22, 2016
What will this mean for the Caps? Very little.
General Fanager projects the Caps to have $58,611,793 committed for next season leaving them just over $14 million of space, but that does not include Marcus Johansson, Jason Chimera, Tom Wilson, Michael Latta or Dmirtry Orlov, all of whom are free agents.
An extra $1.6 million is not nothing and will help the Caps re-sign many of these players, but it certainly does not mean the team can suddenly break the bank this offseason in brining in a top free agent playmaker.