New NHL salary cap: What impact will the reported $87.675 million cap have?

Hockey enthusiasts and NHL insiders alike have a reason to rejoice as the league's salary cap for the 2024 season is projected to surge to a robust $87.675 million, according to insights from esteemed hockey analyst Elliotte Friedman. This significant uptick from the current $83.5 million cap signals a positive turn of events for players, franchises, and the league as a whole.

The looming increase in the salary cap can be attributed to the anticipated resolution of the escrow debt incurred during the tumultuous 2019-20 season when the NHL was halted due to the COVID-19 pandemic. With an approximate $1.5 billion escrow debt on the books, the league has been navigating financial challenges. However, the imminent payoff of this debt is expected to pave the way for a more substantial cap increase.

NHL Salary Cap Soars: Projected at $87.675 Million for 2024 Season

Speaking at the Board of Governors meeting in October, NHL commissioner Gary Bettman expressed (via NHL.com) confidence in the league's financial health, saying, "The state of the league is very strong. Our franchises have never been better owned or stronger." This optimism is backed by growing revenues, robust franchise ownership, and overall positive indicators for the league's vitality.

Historically, the NHL has seen incremental cap increases, with the largest single-season jump being $4.5 million. The impending leap to $87.675 million represents a significant boost that will notably benefit players in contract years and provide breathing room for teams across the league.

As the cap expands, players on the cusp of unrestricted free agency stand to benefit the most. Notable names like William Nylander, Jake Guentzel, and Brandon Montour, among others, are poised to capitalize on this favorable market, potentially securing record-breaking contracts.

Additionally, star players like Leon Draisaitl, Mitch Marner, and Mikko Rantanen, eligible for contract extensions, are well-positioned to negotiate lucrative deals. This could also pay massive dividends for how teams behave during the trade deadline in March.

While the league's salary cap still trails behind major North American sports leagues like the MLB, NFL, and NBA, the significant increase is a positive signal for the hockey community. The league experienced a stagnant cap during the 2020-21 and 2021-22 seasons, with only a modest $4 million increase since the 2018-19 season.

The forthcoming surge in the salary cap not only benefits individual players but also contributes to the overall prosperity of the NHL as it continues to strengthen its financial footing in the sports landscape.