Get ready to see some teams spend their money this summer.
The NHL is set to see a substantial increase to their salary cap this season, with the upper limit set to be increased to $88 million for the upcoming 2024-25 season, the NHL and PHLPA announced on Saturday.
Set at $83.5 million last season, the $4.5 million bump is a 5.4 per cent increase, the largest the league has seen since the 2018-19 season when it increased 6.0 per cent.
The lower limit is set at $65.0 million and the midpoint is at $76.5 million.
This increase marks a big change from last year’s jump, when the cap raised just $1 million, a 1.21 per cent raise.
The NHL’s free agent market is set to open up at noon on July 1, with teams getting a chance to put that extra $4.5 million to use.
The National Hockey League (NHL) recently announced that the salary cap for the 2024-25 season will be increased to $88 million, marking a significant jump from the previous season’s cap of $81.5 million. This increase comes as a result of the league’s continued growth and success, as well as the new television and streaming deals that have been secured.
The salary cap is a mechanism that the NHL uses to ensure competitive balance among its teams by limiting how much each team can spend on player salaries. The cap is determined based on league revenues, with a percentage of those revenues being allocated to player salaries. As revenues increase, so too does the salary cap.
The increase in the salary cap for the 2024-25 season is good news for players, as it means that teams will have more flexibility to sign and retain top talent. It also bodes well for fans, as it should lead to more competitive and exciting games.
However, there are also some potential downsides to a higher salary cap. Teams that are already close to the cap may struggle to fit in new signings or extensions for existing players. This could lead to some tough decisions for general managers as they try to navigate the new financial landscape.
Overall, the increase in the salary cap for the 2024-25 season is a positive development for the NHL and its players. It reflects the continued growth and success of the league, and should help to ensure that the on-ice product remains strong for years to come. Fans can look forward to seeing their favorite teams compete at the highest level, thanks in part to this boost in spending power.