NHL Salary Cap

The NHL salary cap is a financial limit set annually on the total amount of money a team can spend on player salaries. It’s designed to promote competitive balance by preventing wealthier teams from outspending others. The cap is determined based on league revenue, with adjustments made each year. Teams must manage their rosters so total salaries stay within this cap, influencing decisions on signing players, contracts, and trades. This system helps maintain a fair playing field while allowing teams flexibility within the established financial boundary.