The New York Islanders have finally freed themselves from the lengthy periods of salary cap constraints that plagued them for several seasons. They have also appointed a new general manager, Matthew Darsch, who is known for his expertise in managing cap space and comes from the Tampa Bay Lightning organization, a team notorious for using every trick outlined in the Collective Bargaining Agreement to maximize their salary cap flexibility.
One of those strategies involves “weaponizing” cap space through the Long-Term Injured Reserve (LTIR). When a player is injured and placed on LTIR, their entire salary no longer counts against the cap, giving the team extra room to maneuver. However, this tactic isn’t without restrictions; teams must have enough available cap space to activate a player from LTIR. A recent rule change now requires teams’ on-ice playoff rosters to be fully compliant with cap rules, a development we’ll explore more later this week.
It’s high time the NHL addressed and shut down the LTIR loophole. Past use of this tactic by teams like the Florida Panthers, Tampa Bay Lightning, and Vegas Golden Knights provided them with a significant competitive advantage, helping them secure multiple Stanley Cup victories.
Unfortunately for the Islanders, several key players are expected to be out for extended periods, which effectively enhances their LTIR cap relief. Players such as Kyle Palmieri, sidelined for the season with a torn ACL and accounting for $4.75 million in cap hits; Pierre Engvall, sidelined with injuries totaling around $3 million; Semyon Varlamov, injured with a $2.75 million cap hit; and Alexander Romanov, out after shoulder surgery with a $6.25 million cap hit, all contribute to a combined cap relief of approximately $16.75 million.
Adding to this, the Islanders acquired Ondrej Palat, with a $6 million cap hit, and traded away Maxim Tsyplakov ($2.25 million) to New Jersey, as well as defenseman Carson Soucy ($3.25 million). After these transactions, they have around $6 million in cap space remaining ahead of the March 6 trade deadline.
The Islanders are now positioned to either bolster their roster or take on additional cap space for strategic purposes through various trades, including multi-team deals.
Fan Take: This news signals a smarter approach from the Islanders’ management, making them more competitive and flexible, which could shake up the playoff dynamics. For hockey fans, it’s exciting to see teams innovating how they manage cap space—adding a new layer of strategy and intrigue to the game.
