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Saturday, July 16, 2005

nhl- Jagr gets it All

via the NY Daily News, When Glen Sather gets his CBA tutorial Monday, he'll happily learn that the hard cap includes a soft spot for the Rangers and their star winger Jaromir Jagr.
Jagr is the only player in the NHL whose salary for the upcoming season - reduced by the collectively bargained 24% rollback - exceeds the $7.8 million individual player cap. But the Daily News has learned that a grandfather clause on existing contracts ensures that he'll get the entire $8.36 million he's due.
And that, for the purpose of calculating their room under the $39 million team cap, the Rangers only will be charged the amount they pay him - approximately $4.4 million.
The Washington Capitals agreed to pay $4 million of Jagr's annual salary as part of the January 2004 trade that sent him to New York. But that $4 million won't be charged against the Caps' cap. However, it will be included in the league-wide calculation of total player costs, which is capped at 54% of league revenues and reimbursable to owners via a periodic escrowing.
Further, the grandfather clause ensures that all of the NHL's other top-salary players will get all the money they've contracted for - less the 24% rollback - in any season in which a league revenue dip lowers the individual player cap below their salary number. A feature of the new CBA limits individual player salaries to 20% of any year's team cap.