13 NHL teams face cap overage penalties: Where do the Leafs stand?

As Frank Seravalli of the Daily Faceoff reports, an unprecedented number of teams will be grappling with substantial cap overages, affecting their ability to bolster rosters during the off-season.

Currently, 11 NHL clubs are saddled with overage penalties, with the potential addition of two more depending on their playoff performance.

This season is notably the first time multiple teams will carry over more than $2 million in penalties, highlighting the strategic financial challenges teams face under the salary cap regime.

Teams like the Edmonton Oilers, Dallas Stars, and Washington Capitals find themselves at the higher end of this spectrum, with Edmonton leading the charge with a staggering $3.45 million in overages.

The Oilers, in particular, seem to have anticipated this scenario. Seravalli points out that the team's strategy included signing players like Connor Brown and Corey Perry to contracts rich in bonuses, essentially "pre-spending" their anticipated cap increase for this season.

This tactic reflects a calculated risk, betting on future financial flexibility to offset current overages. Notably, the Oilers are also poised to incur an additional $50,000 in penalties should they advance to the Conference Final and the Stanley Cup Final, as stipulated in Perry's contract.

In contrast, the Minnesota Wild are navigating their financial constraints with a $425,000 overage, which could rise by another $212,500 if Marco Rossi earns a spot on the All-Rookie team.

This burden is compounded by a hefty $14.7 million in dead cap space following the buyouts of Zach Parise and Ryan Suter, setting their effective salary cap threshold at just over $72.57 million.

Thankfully, the Toronto Maple Leafs are entering the off-season in an enviable financial position, with no overage penalties to their name.

This clean slate is particularly beneficial as the Leafs look to retool their roster in pursuit of a long-elusive Stanley Cup, capitalizing on every available dollar under the cap.

Of course, the cap increases for Auston Matthews and William Nylander will eat up all of the money from the expected salary cap increase in 2024-25, but that's another conversation entirely.

Source:
Daily Faceoff: Oilers, Stars and Capitals among 11 teams with record salary cap overages for 2024-25