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AAV (average annual value) is a contract's total value divided by its length, and it is the number that counts against the cap, also called the cap hit. A 6-year, $60M contract has a $10M AAV every season, no matter how much actual salary is paid in any single year.
Term is the length of a contract in years. Longer term gives a player security and can lower the AAV by spreading the money over more seasons, but it locks the team's cap commitment for longer. Under the current CBA, a contract can run up to six years when a player signs with a new team, or seven years when he re-signs with his current team.
A single player's cap hit cannot exceed 20% of the salary-cap ceiling. For 2026-27, with a $104.0M cap, that is a maximum of $20.8M per season, the first time in the cap era a player can top $20M.
Long-Term Injured Reserve (LTIR) lets a team spend over the salary cap ceiling while a player is injured, though the relief is now limited. As of 2025-26, a team gets at most about $3.82M in cap relief for an injured player expected back that season or in the playoffs, rather than his full cap hit. Regular injured reserve gives no relief at all: that player's cap hit still counts in full.
A team cannot legally exceed the salary cap during the regular season, so compliance is checked every day. If a team is over, it must get back under before it can ice its lineup, usually by demoting players to the minors, placing an eligible injured player on Long-Term Injured Reserve, or trading salary away. LTIR is the only mechanism that lets a team operate above the ceiling.
Yes, as of the 2025-26 season. For the first time the NHL applies a salary cap in the Stanley Cup Playoffs. It works game by game: before each game a team submits a 20-player lineup, and that lineup plus any dead-cap charges (buyouts, buried contracts) must fit under the cap. Scratched and injured players do not count, and cap hits are not pro-rated. The rule closes the old LTIR loophole that let teams ice a star in the playoffs after building a roster over the ceiling during the season.
A buyout ends a player's contract early. The team pays a reduced share of the remaining salary, two-thirds for players 26 and older and one-third for those under 26, spread over twice the years left on the deal. It clears most of the cap hit but leaves a smaller dead-cap charge on the books for those seasons.
In a trade, a team can retain (keep paying) up to 50% of a player's cap hit, with the acquiring team paying the rest. Teams do it to make deals fit: it lowers the cost for a cap-strapped buyer, lets a rebuilding team act as a broker to collect extra picks or prospects, or helps a contender squeeze a star under the cap. A single contract can be retained by up to two teams.
The main clauses limit how a team can move a player. A No-Movement Clause (NMC) blocks any trade, waiver, or demotion to the minors without the player's consent. A No-Trade Clause (NTC) blocks trades, either full (any team) or modified (a set list of teams). Young players start on an Entry-Level Contract (ELC) with capped salary plus performance bonuses.