Washington Capitals Salary Cap: What is it and how it works

The Washington Capitals are well into their free agency period and it's only been a few days since this roster got completely overhauled. Per Gary Bettman to media in Las Vegas, the salary cap climbed to $88 million for the 2024-25 season.

From the 2005-06 season through the 2014-15 season, the NHL's salary cap ceiling climbed from $39 million to $69 million. Over the last nine seasons that salary cap has been flat at just $83.5 million over the last nine seasons. The $4.5 million increase is the largest since a $4.7 million bump from 2013-14 into the 2014-15 season.

Capitals General Manager Brian MacLellan said at the time of draft weekend:

"There seems to be a lot of conversation. I think the increase in salary cap benefits free agents that are coming in, so I think guys will be a little more aggressive in signing the free agents."

Mike Vogel from WashCaps.com explains more in his piece which we highly encourage you to check out. The additional cap space allowed the Caps to retool their roster on the fly which sets things up whatever decision happens for the guys on LTIR.

In the past we've seen that roster building takes several weeks. Right now the prospects are at Development Camp and the Bears just won a Calder Cup, an AHL record 13th to be exact. So the Caps know how to develop and that comes from MacLellan, Spencer Carbery and other team brass.

MacLellan added:

"There seems to be a lot of conversation. I think the increase in the salary cap benefits free agents that are coming in, so I think guys will be a little more aggressive in signing the free agents."

MacLellan knew what he was doing heading into draft weekend. The team dealt Darcy Kuemper to the Los Angeles Kings in exchange for center Pierre Luc-Dubois, who just turned 26, and has seven seasons worth of NHL experience and is under contract for the next seven seasons at an annual salary cap hit of $8.5 million.

And so far in Development Camp, wherever Alex Ovechkin is located. Maybe Dubai. But he sent his general manager a thumbs up emoji meaning he approves of the moves. That's perhaps the most important thing.