The National Hockey League (NHL) is set to implement a significant rule change this spring: a salary cap will now apply to game-day lineups during the playoffs. This marks a departure from previous postseason structures where the salary cap did not govern active rosters.

End of the LTIR Playoff Loophole

This new regulation effectively ends the practice of teams utilizing Long-Term Injured Reserve (LTIR) throughout the regular season only to dress high-salaried players once the playoffs commence. Commissioner Gary Bettman confirmed that the change was incorporated into the collective bargaining agreement (CBA) finalized with the players' union last summer.

The adjustment addresses long-standing concerns regarding teams manipulating rosters to exceed the cap ceiling for deep playoff runs. For instance, following the Carolina Hurricanes' 2021 elimination, player Dougie Hamilton noted they lost to a team allegedly operating “$18 million over the cap.”

New Financial Constraints for Postseason Rosters

Under the new CBA terms, while a team's entire playoff roster doesn't need to be under the ceiling, the combined annual salaries of the skaters and goaltenders dressed for any specific game cannot surpass $95.5 million.

The Playoff Cap Calculator Tool

To assist general managers and executives in navigating this real-time compliance, the league introduced a specialized playoff cap calculator within the SAP-NHL Front Office App. This tool has been in use for over a year for other functions.

Commissioner Bettman stated, “Once we were going to cap-compliant rosters for playoff games, we needed something that would enable us to do it in real time.” He expressed satisfaction that the conceptual issue was solved and that SAP and Central Registry created a practical tool for compliance.

How the Calculator Works

The projection tool allows users to simulate lineups, mixing and matching personnel to instantly verify cap compliance. The demonstration showed how teams, such as the Edmonton Oilers, must account for stars like Leon Draisaitl, whose $14 million cap hit must be factored in upon his return from a regular-season injury.

Bettman praised the functionality: “You do it and it tells you if it doesn’t work, and it lets you pick and choose and substitution. It’s absolutely ingenious.”

Development and Adoption of the Tool

The SAP-NHL Front Office App, initially designed for iPads, became available on iPhones in December. The specific playoff cap calculator feature was released publicly in early February, just before the roster freeze preceding the Olympic break.

NHL VP of Digital Business Development, Chris Foster, noted a significant increase in usage across all 32 franchises. He explained that the scenario-building feature was originally intended for trading and free agency but was rapidly adapted following the CBA changes.

Foster credited the Central Registry group for flagging the necessity of the tool early on, stating, “It was their leadership that helped drive this change in the roadmap.”

Daniel Beringer, SAP’s Global Head of Technology and Innovation, detailed the initial challenge of digitizing contract data previously stored in paper binders. However, he suggested that once the data infrastructure is established, adding new features, like a hypothetical Apple Watch app, could now be accomplished quickly.