Despite a series of seasons in which the New York Islanders were very much in salary cap hell, that narrative is no more.
Not only that, but the Islanders have a new general manager in town in Mathieu Darche, who not only specializes in handling the salary cap but also comes from a team in the Tampa Bay Lightning that used every trick in the CBA book to make the money books work.
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Yes, that is a reference to weaponizing Long-Term Injured Reserve cap space.
When someone is injured and placed on LTIR, their full salary-cap hit comes off the books, which allows a team to use that space. However, there is a caveat: before the injured player can be activated, there must be sufficient room on the books.
There’s a new rule that took effect this season requiring playoff on-ice rosters to be cap-compliant, but we’ll touch on that later this week.
It’s About Time The NHL Closed Its LTIR Loophole
It’s About Time The NHL Closed Its LTIR Loophole The loophole that helped the Florida Panthers, Tampa Bay Lightning and the Vegas Golden Knights earn a competitive advantage and win multiple Stanley Cups is finally closed.
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Unfortunately for the Islanders, they have a tremendous amount of LTIR cap relief because of how many players they have out long-term.
Forward Kyle Palmieri is out for the season with a torn ACL, meaning his $4.75 million cap hit comes off the books. Forward Pierre Engvall is out for the season due to an ankle injury, along with a hip injury, both of which required surgery, giving the Islanders an additional $3 million. Goaltender Semyon Varlamov and his $2.75 million are off the books due to a lower-body injury that required surgery.
And lastly is defenseman Alexander Romanov, who is out for the regular season after undergoing right shoulder surgery, clearing an additional $6.25 million.
That totals $16.75 million in cap relief. After the acquisitions of forward Ondrej Palat and his $6 million — Maxim Tsyplakov and his $2.25 million went to New Jersey — and defenseman Carson Soucy, who carries a cap hit of $3.25 million.
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After those two deals, the Islanders have $6.021 million in available space ahead of March 6th’s NHL Trade Deadline.
Whether the Islanders look to add players to bolster their club or take on cap, whether that’s in a two-team or three-team trade, they have the ability to do so.
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