Offer Sheet - Effect of The Salary Cap (NHL)

Effect of The Salary Cap (NHL)

Prior to the 2004–05 NHL lockout, teams could spend as much or as little as they wanted, therefore most offer sheets were matched. This caused offers to restricted free agents to be rare to avoid ill will amongst general managers; there were no offer sheets made in the six years prior to the lockout. Beginning with the 2005 NHL Collective Bargaining Agreement, the NHL assigned a salary cap ceiling and floor for each season, so teams must spend money more wisely. This means it is more likely that general managers will offer a contract to a younger player with potential that their team does not see as much value in matching, rather saving money for other players. This also leads to teams signing their own players to long-term contracts before they are eligible for restricted free agency, possibly locking them in at a lower rate than they will have to pay later, depending on each player's future performance; contracts cannot be renegotiated under the current CBA. A potential benefit to a player whose current team matches an offer sheet is that the player cannot be traded for the next calendar year.

Since the 2004-05 lockout, seven restricted free agents have signed offer sheets, and only one player has changed teams as the result of an offer sheet: Dustin Penner prior to the 2007–08 season. Penner is also the only player since 1997 (Chris Gratton) to change teams via an offer sheet). The risk invested in real and cap dollars along with the negative reaction to an offer sheet has led to the act of signing an offer sheet becoming rare under the current CBA.