What signing Krug and Smith means for the cap - Savard and the LTIR

Good news to start the week huh ? Bruins GM Peter Chiarelli managed to sign RFA's Torey Krug and Reilly Smith to 1-year bridge deals at 1,4M $ each. In doing so, the B's are now spending 4,4M $ over the allowed cap space of 69M $ with 24 players on their roster. (see estimated roster below)


That number includes the about 4 million $ Marc Savard makes annualy until the 2017-18 season.
Just like the last three season, Bruins management is left with 2 options regarding Savard and the so called LTIR (long term injured reserve).

Estimated roster for all the following examples

 OPTION 1: Build the injured player into their opening-day roster and have that roster fit as close to the upper limit as possible without exceeding it, then place the player on LTIR.

This is what they went with last year as they were 1,7M $ over the cap on the final day of training camp. Placing Savard on the LTIR would have left them with no cap space (new upper limit as high as the cap roll was with Savy on the roster), so they decided to demote both Hamilton and Krug to get under the cap. Not until then they placed Savard on the LTIR, giving them a new upper limit of 68,3M $ (thats the allowed 64,3M + Savards cap hit). Bruins then recalled Hamilton and Krug, which put them 2,2M $ under the cap.

 -> Won't be possible this year (besides there will be any trades) as the team is now spending more than 4 million over the cap, which means they would be forced to send down players through waivers as only Ryan Spooner, Dougie Hamilton and Niklas Svedberg are exempt from them. (those 3 would only free up 2,25 mil cap space combined)

OPTION 2: Put the injured player on LTIR on the final day of training camp and, including the injured player’s annual average salary or cap hit, build a roster that exceeds the upper limit by an amount that is as close as possible to the injured player's annual average salary.

This is what the Pittsburgh Penguins did last year with injured Thomas Vokoun (2M $ cap hit). On the final day of training camp they were 1,7M $ over the cap, including Vokoun. Putting their Czech goalie on the LTIR would have left them with no cap space, so they decided to demote Beau Bennett (990k $) and call up Harrison Ruopp and Chris Conner (together 1,2M $). That put them 1,9M $ over the cap, or in other words close to the 2M $ of Vokouns cap hit. Not until then they placed Vokoun on the LTIR, leaving them with the upper limit of 66,3M $ (thats the allowed 64,3M + Vokouns cap hit). Pens then recalled Beau Bennet and demotet Ruopp and Conner, which put them 300k $ under the cap.

-> The more likely option for Bruins this year. They are already spending 4,4 M $ over the cap, which is more than Savards cap hit. They could for example demote Dougie Hamilton and Ryan Spooner (both waiver exempt / combined 1,66M$) on the final day of training camp and bring up Craig Cunningham and Bobby Robbins (1,2M $ combined). That would put them 3,9M $ over the cap, so close to the 4M $ of Savards cap hit. Placing Savy on the LTIR, will be leaving them with the upper limit of 73M $ (allowed 69M $ + Savards cap hit). Demoting Cunningham and Robbins and bringing up Hamilton and Spooner would put them 3,6 M $ under the cap of 73M $

Howsoever Peter Chiarelli will solve the cap problem, the most important insight of the day is that Bruins won't be forced to trade key roster players like Johnny Boychuk.


Big thanks to capgeek and SB Nations Leafs fansite Pension Plan Puppets for the working material.
You can find their links below:

How does Long-Term-Injured-Reserve work ?

 A guide to the NHL waiver rules