How is the Cap Lower Limit Calculated?

Asked Jun 23, 2019 by Brent
NHL How is the Cap Lower Limit Calculated?

How is the Cap Lower Limit (Floor) calculated?

Jun 23, 2019

The Cap Lower Limit (Floor) and Upper Limit (Cap) are both a function of the mid-point.  The Cap is 15% over the mid-point & the floor is 15% below the mid-point.  When the Cap Upper Limit was announced as $81.5M, the calculation of the floor is:

Upper Limit / 1.15 = Mid Point, and then Mid Point *0.85 = Lower Limit (Floor)

$81,500,000 / 1.15 = $70,869,565. That # * 0.85 = $60,239,130 Floor