LTIR and Performance Bonuses

Asked Feb 25, 2020 by Jesse

The Oilers are going to be paying much bonus money at the end of the season which will put them over the cap. Can the LTIR room be used to compensate for these overages or does it have to be applied to next years cap?

Answer

Mar 4, 2020

Any bonuses earned that put the total cap hit over the cap limit for a season carry forward as a cap hit for the next season (bonus carryover overage). LTIR does not help compensate for that, as LTIR allows a team to exceed the cap. In fact, by using LTIR, a team is then over the Cap Limit for the season, which then means any performance bonuses earned would be in addition to the team already being over the limit, and the bonuses would carry over to the next season.

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