what is the nhl salary cap

The NHL salary cap is the total amount of money that National Hockey League (NHL) teams are allowed to pay their players. It is a "hard" salary cap, meaning there are no exemptions, and thus no luxury tax. The salary cap varies on a year-to-year basis, calculated as a percentage of the NHLs revenue from the previous season. The salary cap was introduced for the 2005–06 season, set at US$39 million per team. Over the next two seasons, the salary cap surpassed the $40 million threshold, then the $50 million threshold. Following those three consecutive thresholds, the salary cap would first surpass $60 million in the 2011–12 season, $70 million in 2015–16, and $80 million in 2019–20. As part of the new collective bargaining agreement, the salary cap will remain at $81.5 million for the 2020–21 NHL season. For the 2023-24 season, the NHL salary cap will be $83.5 million, with a lower limit of $61.7 million. The salary cap is expected to increase by approximately $4 million for the 2024-25 season.