Business of Sports · NHL
NHL’s Rising Salary Cap Forces Teams to Rework Long-Term Plans
Cale Makar’s $20.4 million annual contract value is resetting comparisons as clubs prepare for the next group of major extensions.
NHL teams are revising long-term payroll plans as the rising salary cap drives larger contracts. Columbus general manager Don Waddell told NHL.com that the Blue Jackets had discarded a five-year plan prepared in February because salary expectations had changed so quickly.
The league’s report points to Cale Makar’s eight-year extension at a $20.4 million annual average value as the latest record. Columbus’s six-year, $82.5 million agreement with Adam Fantilli carries a $13.75 million annual value.
The current $104 million cap puts the maximum annual value of a newly signed player contract at $20.8 million under the 20 percent rule. A higher future ceiling would change that maximum again. Projected future caps should be distinguished from a final cap announcement.
Commissioner Gary Bettman said the rapid increases partly reflect recovery from the pandemic-era flat cap and should eventually return to growth in line with revenues. For clubs, the practical question is how much room a contract will occupy over its full term, rather than whether its dollar figure looks large beside an older deal.
