Saturday, July 16, 2005

Jaromir Jagr and the Cap

New York Rangers winger Jaromir Jagr is set to make $8.36 million with the 24% rollback of salaries. However, the max salary for the 2005-2006 season is $7.8 million. So will Jagr have to forfeit that difference between the two figures? No. Players who signed contracts under the old CBA will be grandfathered in and will receive their full salaries.

When the Rangers acquired Jagr in a trade with the Washington Capitals, the teams agreed to split Jagr's salary. So the Rangers will only pay Jagr $4.4 million this season, and therefore only $4.4 million and not $8.36 million will count against their salary cap figure. This is great news for the Rangers.

What's interesting is that even though Washington will have to pay $4 million of Jagr's salary, it will not count against them this season under the cap. It will, however, count towards that 54% figure that makes sure revenues and player costs are linked.

This New York Daily News article explains it all.

Note: Jagr is the only player with the rollback that is over the $7.8 million max salary.