Report: Canadiens Willing To Weaponize Cap Space Again, Even LTIR

Carey Price #31 of the Montreal Canadiens (Photo by Richard Wolowicz/Getty Images)

With all their free agents signed, the Montreal Canadiens have more cap space than they know what to do with. With a few teams looking to unload some salary and the Canadiens projected to start the season with over $5.5M in salary cap space, they’re in business.

But the summer isn’t over just yet, and certain teams, like the New York Islanders and Nashville Predators, are right up against the salary cap without a full roster. However, the Montreal Canadiens have a secret weapon that no other team in the NHL can leverage, and that is Carey Price’s contract.

Should general manager Kent Hughes continue to pursue his options to bolster the Canadiens’ top six, like Nikolaj Ehlers or Patrik Laine, Price’s contract could be of utmost importance.

Hidden Trump Card

Carey Price’s $10.5M contract isn’t set to expire for another two years, and it inhibits the Canadiens from truly maximizing their real cap space. Instead, the Canadiens have had to rely on putting Price’s contract on Long-Term Injury Reserve (LTIR) to make their financial structure work.

But, it’s also allowed them to take advantage of other teams that don’t have the same luxury. In 2022, the Canadiens were able to extract a first-round pick from the Calgary Flames to take on Sean Monahan, while also being able to snag a 2^nd-round pick and other assets from the Pittsburgh Penguins to take on 40% of Jeff Petry’s salary in the summer of 2023.

According to some within the NHL, the Montreal Canadiens are well-positioned for another one of these moves.

“Montreal is sitting in a pretty enviable spot with their owner willing to not only spend to the cap, but surpass it, if need be,” said a well-placed NHL source to RG. “They may have $5.5M in space or whatever that number is, but being able to use Price’s contract to give them another $10.5M opens up a world of possibilities.”

With moderate-to-big salary names like Ehlers, Zegras, Laine, and more still available on the market, and cap-strapped teams like the Edmonton Oilers or New York Islanders needing to dump salary, the Canadiens are reportedly sniffing around.

History Repeating Itself

The Canadiens would only reportedly look to put Carey Price’s contract on LTIR if the offer were too good to pass up, just like in years past.

“Montreal is calling to see if they can capitalize on certain clubs, but putting Carey Price on LTIR comes with its own challenges,” said another NHL source. “Hughes is looking to do something, but not at the expense of next summer or the coming years.”

And they’re absolutely right. The Canadiens can use all of the $10.5M in potential LTIR space, on top of their existing $5.5M cap space, to make deals, but there are some drawbacks.

The Canadiens cannot accrue cap space while using LTIR, meaning that their cap space doesn’t grow as the season goes on, like other teams spending less than $88M this season. What’s worse, especially for a rebuilding team, is that all the earned performance bonuses from any of the many young players on the Canadiens would also slide over to next year.

That’s exactly what happened to Montreal this year, with a carryover penalty of over $1M bogging them down. It may not be a big deal this year, but that money could be much more valuable next summer when the Canadiens look to spend the cap.

Despite that, there is chatter on the market that Montreal remains open to moves, and $5.5M is already a good chunk of money to work with, should the opportunity arise.

“Never count out the Montreal Canadiens when it comes to surprise summer trades,” concluded the source.