Friday brought good news for cap-tied general managers and free-agent-hungry fans alike, as the NHL and the NHL Players’ Association announced estimates for salary cap increases over the next three seasons.
While NHL cap numbers normally are released on a year-to-year basis, the new model provides more long-term predictability for teams as they navigate the cap. Commissioner Gary Bettman announced in December that the cap was expected to jump around $4 million to $92.4 million next season. But with league revenue streams up almost across the board, Bettman recently hinted at the Board of Governors meetings that the number could rise even higher.
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In 2025-26, the official cap ceiling will be a record $95.5 million, a $7.5 million increase over last season’s cap ($88 million). The cap will increase by another million per year in the next two seasons. An $8.5 million increase in 2025-26 will see the cap reach $104 million in 2026-27, and grow $9.5 million in 2027-28 to a whopping $113.5 million. The cap floors during those years will be $70.6 million, $76.9 million, and $83.9 million. The floor for 2024-25 is $65 million.
Last year, NHL revenue hit a record $6.2 billion, had a spike in attendance and sponsorship deals, and reached new levels of exposure with the league’s television deals with ESPN and TNT.
The news of future cap increases will be music to Flyers general manager Danny Brière’s ears. After Friday’s trade for Andrei Kuzmenko and Jakob Pelletier, the Flyers currently have only about $1.4 million in available cap space, per PuckPedia. The Flyers also likely are stuck with Sean Couturier’s albatross of a contract for five more years at a cap hit of $7.75 million. The cap increases will help teams like the Flyers ease the burden of contracts like Couturier’s while also giving teams flexibility to pursue high-end free agents.
The Flyers also have several young players on entry-level or bridge deals such as Cam York, Noah Cates, and Tyson Foerster that they will now have a little bit more space to sign. The Flyers are projected to have $25 million cap space entering next season, not counting an additional $6.25 million in space they’d have with Ryan Ellis on long-term injured reserve.
Friday’s announcement could also have an unintended benefit for larger American-market teams like the Flyers. Some smaller-market teams may opt to spend closer to the floor with the numbers rising high and owners not wanting to spend more money. But the biggest trickle-down effect could be the new financial strains these increases could pose to Canadian teams, given the continued decline of the Canadian dollar. For instance, a Canadian market team will have to spend $138 million in U.S. dollars to meet the $95.5 million ceiling next season. Both factors could help reestablish Philadelphia as a desirable landing spot for potential free agents.
The NHL still hopes to have a new collective bargaining agreement before the end of the season. The current deal expires in 2025-26, but both sides are on good terms and have plans to iron out details in the coming months.