Oilers’ Salary Cap Plan and Next Move After Klingberg’s Contract

This discrepancy is due to a $350,000 signing bonus, which NHL rules calculate at full value for cap purposes, even on midseason deals. The rest is based on whether the Oilers are in LTIR, or not in LTIR and the value calculated at the point in time of the season Klingberg was signed.

How Does Klingberg’s Cap Hit Work?

Here’s how the cap dynamics work: If the Oilers operate under the cap, Klingberg’s cap hit is prorated based on the number of days remaining in the season. This means the team would only need to account for about $824,000 in cap space for his salary, significantly less than the $1.74 million cap hit.

The Oilers must stay under the cap ceiling for this to apply. This will mean moving some players down to the AHL and sending a contract or two off the roster.

If the Oilers operate in LTIR (Long-Term Injured Reserve), as they have this season, the team must absorb Klingberg’s full cap hit of $1.74 million.

Assuming the Oilers don’t make other roster moves (which they likely will), they will have $3.15 million in remaining cap space under LTIR with Klingberg’s deal registered.

What Else is Coming for the Oilers?

If the plan is to spend more and get the most flexibility, the play for the Oilers now is to make sure they are under the cap.

David Staples writes, “Klingberg with a $1.7 million cap hit means one thing to me. Confirmation [Evander] Kane will not play this regular season. Which was already obvious.”

Jason Gregor of Sports 1440 writes, “It is a six-week test to see if he can play. If not, they still have cap space to add another RD and he can be #7 or even go to AHL (cost around $600K on cap).” He adds, “There is some risk, but not major. If he plays well, then a big bonus, but I’d still add another depth D even if he plays well.”

Kevin Weekes said on NHL Network that he thinks the Oilers intend to add another defenseman. While Klingberg might be a solid pickup, he’s not the ideal fit for what the Oilers are looking for, which is a more rugged shutdown d-man. He thinks Edmonton will ensure they have the cap space they need to trade for another piece.