[brooks] Rangers Face Looming Cap-Crunch Due to Entry-Level Bonuses

The $12,994,444 of dead space the Rangers are carrying into and through the 2020-21 season has effectively reduced the club’s working cap to $68,505,556.

 

And now it appears that the CBA’s bonus regulations will likely reduce that figure by up to another $4.8 million, thus diminishing general manager Jeff Gorton’s working capital to approximately $18.3 million of space this offseason, rather than the virtual $23.1 million that is essentially an illusion.

 

That is because the sum of potential bonus payouts cannot exceed 7.5-percent of the cap. That calculates to $6,112,500 on the $81.5 million cap. The Rangers could be on the hook for $10,912,500 in total potential entry level bonuses. The hypothetical $4.8 million difference would be applied to the Rangers’ cap at the start of the season.

 

The $10,912,500 incorporates maximum payouts to Igor Shesterkin ($2.85 million), Kaapo Kakko ($2.65 million), Adam Fox ($850,000), Filip Chytil ($350,000), Julien Gauthier ($300,000) and Ryan Lindgren ($212,500). It also includes $850,000 for Morgan Barron, a legit candidate to make the varsity, though that would probably become part of the evaluation process when it comes time to select the team.

 

Plus, of course, the maximum $2.85 million package that will be bequeathed to Alexis Lafreniere, Tuesday’s presumptive first-overall pick in the draft, has been added to the tally.

“I think one thing a lot of people don’t realize is now you look at the Rangers and everybody says they’ve got a lot of cap space,” club president John Davidson said on a Zoom call Friday. “But when you draft young players, for instance the overall No. 1 pick, when that person is with us, his bonus structure goes on the cap.

 

“So there’s a lot of bonuses from young players in particular that also are part of your numbers when you look at the cap number, where you are in conjunction with the cap, which is not only flat this year, but two more years after that.”

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I'm not too concerned about bonuses. I could see Lafreniere getting maximum bonuses but it'll be tough for the other to do so except maybe Shesterkin and Fox.

There are two different types of bonuses available. Class A includes things like "scoring 20 goals" or an "All Star selection" for instance. Those have a maximum payout of $212,500 per bonus achieved with a maximum total payout of $850,000. These are the bonuses that you need to be concerned with here, but you're really only facing another $850k at most depending on what bonus stipulations are even included.

Class B bonuses are a little different. They require a player to finish within the top 10 (or 5 for goaltenders) in specific statistical categories league-wide or to receive top 3-5, depending on the trophy, for awards recognition. These have a maximum payout of $2M total. These are clearly much harder to attain.

There's reason to be concerned, but I doubt they end up paying too much in bonuses.

I'm not too concerned about bonuses. I could see Lafreniere getting maximum bonuses but it'll be tough for the other to do so except maybe Shesterkin and Fox.

 

There are two different types of bonuses available. Class A includes things like "scoring 20 goals" or an "All Star selection" for instance. Those have a maximum payout of $212,500 per bonus achieved with a maximum total payout of $850,000. These are the bonuses that you need to be concerned with here, but you're really only facing another $850k at most depending on what bonus stipulations are even included.

 

Class B bonuses are a little different. They require a player to finish within the top 10 (or 5 for goaltenders) in specific statistical categories league-wide or to receive top 3-5, depending on the trophy, for awards recognition. These have a maximum payout of $2M total. These are clearly much harder to attain.

 

There's reason to be concerned, but I doubt they end up paying too much in bonuses.

Maybe I'm misunderstanding this. They are only allowed a 7.5% cushion in performance bonuses. They are over right now (though they haven't been earned). Does this mean any overages apply to this year's or next year's cap?

Maybe I'm misunderstanding this. They are only allowed a 7.5% cushion in performance bonuses. They are over right now (though they haven't been earned). Does this mean any overages apply to this year's or next year's cap?

However, while such Player is in the NHL, the Entry Level Signing Bonus, Performance Bonus, Roster Bonus or Reporting Bonus shall count toward the Averaged Club Salary for such Player's NHL Club, calculated daily. While such Player is in the NHL, the Entry Level Signing Bonus, Performance Bonus, Roster Bonus or Reporting Bonus (all such Bonuses only to the extent paid) shall count toward the Actual Club Salary for such Player's NHL Club, calculated daily, and such Bonuses (only to the extent paid), calculated daily, shall count toward the Players' Share.

Direct from the CBA. They count, but you can roll them over into the following season which I would expect.

Send down Shesterkin (2.85), Gauthier (300), that's 3.15. Need to get to 3.94

Fox is .850

Kakko is 2.65

And that's without Lafreniere signed.