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Performance Bonuses and Carryovers
Performance Bonuses are paid to players based on their achievements and are not guaranteed. Only certain players are eligible for performance bonuses in their contract:
-Entry-Level Contract Players
-Players that are 35 years or older and sign a 1 year contract
-Players with a minimum of 400 NHL Games Played signing a 1 year contract after having a long-term injury. A long-term injury is defined as a player on Injured Reserve for a minimum of 100 days in the last year.
While performance bonuses count against the salary cap, teams are permitted to exceed the salary cap due to performance bonuses, to a maximum of 7.5% of the Salary Cap.
If a team exceeds the Salary Cap due to performance bonuses, then any amount over the Salary Cap is considered a Bonus Carryover, and counts against the cap in the next season.
Signings Bonuses are paid upon signing a contract, or paid out on July 1 of a contract year. Signing bonuses are similar to salary as both are guaranteed.