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Cap Hit on Contract Extensions
If a team signs a player with one year remaining on their current contract how does the extended contract get counted against the cap? For example, Nathan MacKinnon has one year left on his current contract at $6.3 million AAV. If he signs an extension for 8 years at $10 million is is cap hit instantly increased to $10 million for the coming season or is it deferred until next year?
AnswerJul 20, 2022
The Cap Hit is based on the contract that's active for that season. Nathan MacKinnon's current contract goes through the 22-23 season, so for that season his cap hit is $6.3M, even if he signs an extension. His extension will start the 23-24 season, so the cap hit that season will be from his new contract.
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