Canadiens Analysis
Impact Of NHL Salary Cap Increase On Montreal Canadiens Future

The NHL is expecting a significant increase in regard to the salary cap over the course of the next three years, which should give the Montreal Canadiens plenty of financial manoeuvrability as they take the next step in the rebuild.
The salary cap for the 2025-26 season should be set at $95.5 million, representing an 8.5 percent increase over the current salary cap of $88 million. It will then rise to $104 million in 2026-27, an 8.9 percent increase over the previous year. Finally, 2027-28 will feature a 9.2 percent increase, with the salary cap set at $113.5 million
New:
NHL/NHLPA have released cap estimates for next three seasons:
2025-26: $95.5M
2026-27: $104 M
2027-28: $113.5M— Elliotte Friedman (@FriedgeHNIC) January 31, 2025
Salary Cap Increase Impact On Montreal Canadiens
While the cap will rise between 8.5 percent to 9.2 percent per season, the total growth represents more than a 29 percent increase from 2024-25 to 2027-28, a very healthy bump for all NHL teams.
Well, let me rephrase that.
It’s a healthy bump for all NHL teams that can afford it, and that certainly includes the Montreal Canadiens.
The first thing that comes to mind when discussing the upcoming increases is the contracts offered to both Nick Suzuki and Cole Caufield in recent seasons. At just $7.875 million and $7.85 million respectively, the two most important cogs in the team’s offensive wheel should provide fantastic value at the perfect time in the rebuild, giving general manager Kent Hughes more options moving forward.
Of course, the change will also mean the next series of contracts are likely to be signed for big money, at least relative to what they would have cost NHL teams between 2022 and 2025. Even though the salary cap is going up, a sharp accounting pencil is still in order, as things can quickly get out of control when general managers have salary-cap flexibility.
Remember, all the teams that got themselves into salary-cap hell will now have bonus space to work with, which means more terrible contracts are inevitable. The wisest teams will avoid immediately using all the available cap space, giving them more options down the road when reinforcements are needed.
Impact On 2025-26 Montreal Canadiens Season
Projected Salary Cap: $95.5 million. Projected Canadiens Cap Usage: $80.4 million
Players Signed: 15
Eight Forwards (Patrik Laine, Nick Suzuki, Cole Caufield, Juraj Slafkovsky, Brendan Gallagher, Josh Anderson, Kirby Dach, Alex Newhook)
Five Defencemen (Arber Xhekaj, Lane Hutson, Alexandre Carrier, Mike Matheson, Kaiden Guhle)
Two Goaltenders (Carey Price *LTIR, Samuel Montembeault)
Restricted Free Agents: Rafael Harvey-Pinard, Emil Heineman, Jayden Struble, Jakub Dobes.
Unrestricted Free Agents: David Savard, Joel Armia, ChristianDvorak, Jake Evans, Michael Pezzetta.
As you can see, the Habs will have roughly $15 million in caps space this summer, however, that doesn’t include Carey Price’s $10.5 million cap hit, which will either be traded to a team looking to reach the salary cap floor, or placed on LTIR should the Canadiens need to access further funds.
Look at it this way. The Habs have $15 million to spend before they have to even consider what they’ll do with Price’s contract. LTIR funds do not accrue, which is why they’ll avoid placing him on LTIR for as long as possible.
None of the restricted free agents warrant a significant pay raise, and other than Jake Evans, none of the unrestricted free agents are expected to warrant a discussion as to a possible contract extension.
It’s also worth noting that the salary retention slots used on Jeff Petry and Jake Allen will be available, an interesting option for Hughes should the Canadiens fail to make the playoffs.
We do have to keep in mind the eventual mega-contract offered to Hutson. I expected it to be close to $9 or $10 million before the increase was announced, but the higher salary cap will give Hutson’s camp more ammo to work with as both parties attempt to find a number they can agree on.
Projected Montreal Canadiens Cap Space (2025-26): $15.1 million
Impact On 2026-27 Montreal Canadiens Season
Projected Salary Cap: $104 million. Projected Canadiens Cap Usage: $50.7 million
Players Signed: 9
Six Forwards (Alex Newhook, Josh Anderson, Brendan Gallagher, Juraj Slafkovsky, Cole Caufield, Nick Suzuki).
Two Defencemen (Alex Carrier, Kaiden Guhle).
One Goaltenders (Samuel Montembeault)
Restricted Free Agents: Kirby Dach, Arber Xhekaj, Lane Hutson.
Unrestricted Fee Agents: Rafael Harvey-Pinard, Patrik Laine, Mike Matheson, Carey Price
The 2026-27 season should be very interesting. As it stands, the Habs will have roughly $53 million in cap space. Now, we can’t forget all the young players who are set for a pay rise, such as Hutson and Dach, and there’s also the matter of prospects who aren’t currently playing in the NHL. Ivan Demidov should be part of the team by then, while some AHL players should also join the fold. With that in mind, even though the Canadiens only have nine players signed (as of now), it’s a healthy situation for Hughes and Co.
It’s very difficult to project exactly what the team will look like in two years, but the Canadiens will have an opportunity to be among the busiest teams in the league, as they’ll have ample cap space. Much of their financial flexibility will depend on what kind of raises, if any, Laine and Dach will command.
Projected Montreal Canadiens Cap Space (2026-27): $53.3 million
Impact On 2027-28 Montreal Canadiens Season
Projected Salary Cap: $113.5 million. Canadiens Projected Cap Usage: $28.88 million.
Players Signed: 4
Three Forwards (Juraj Slafkovsky, Nick Suzuki, Cole Caufield)
One Defenceman (Kaiden Guhle)
Restricted Free Agents: Alex Newhook
Unrestricted Fee Agents: Alex Carrier, Josh Anderson, Brendan Gallagher, Samuel Montembeault
By this point, we’re really grasping at straws to paint the salary-cap picture, but suffice it to say, Hughes, or whoever will be in charge of the Canadiens by then, will practically have a clean slate.
Only four core players are signed, while Anderson and Gallagher’s contracts will mercifully expire.
Again, there are too many variables to consider, and saying they’ll almost have $85 million in cap space is deceptive, because they also need to sign 20 players to complete the lineup.
There are just too many questions left to be answered.
Will Jacob Fowler be their starter by then?
Will Hutson be working with a $12 million (AAV)?
How much will Ivan Demidov’s second NHL contract cost?
How many prospects will be due for a raise?
Regardless, it’s safe to say the roster should look very different to what we’re expecting today. Remember, while most fans project players to stay with the team in the long term, NHL roster turnover prior to this gigantic increase in cap space was already intense.
NHL teams will have over $3.5 billion to spend that season, connoting that we’re set for a very interesting, if not completely chaotic future.
Projected Montreal Canadiens Cap Space (2027-28): $84.6 million
Montreal Canadiens salary cap information via Puck Pedia.
We lost a whole season of hockey as the league shut things down to create a salary cap with the idea that it would help the small market teams to compete with the big markets and build parity. With these crazy increases coming, those small teams are in big trouble. Unless the NHL goes all in on revenue sharing, we’re going to see the old days of haves and have nots. That’s not a healthy situation for the league as a whole. We may be one of the teams that have the resources to be one of the big boys, but for the good of the game, something will need to be done to help the Winnipegs of the league. In the meantime, the timing might just be perfect for us to take advantage of the situation while the league figures it out. If we can do whatever it takes to win a Cup before things get corrected, I’m all for it. The timing of Price’s contract ending is great for us, but I bet there’s several small market teams that would love to have it to use it to get to the ever rising cap floor.
Well said.
Its not MLB. There is a cap and a floor. These increases simply make up for the Covid years whereby everything was on hold. What more do you want? Its Socialism at its best.
And don’t cry for Winnipeg. They may win the Cup this season.
As far as Cap Management is concerned, that’s one area where I feel Hughes has done a very good job. Not unloading Anderson instead of Toffoli two years ago was his worst “cap” move so far, but in the end, with these cap increases over the next two seasons, it will be easier to eat Anderson’s cap hit (or even trade him). Habs should have a boatload of $ available for next season, and even more available the following season when Price is officially off the books.
Somehow, it would be nice if just one or two bigtime UFAs could sign with the Habs, bucking the trend of UFAs don’t want to come to MTL. Otherwise, its sign guys from within, or acquire via trades. Either way, there will be tons of $$$ available because of the significant cap increases AND Hughes very good management of the cap so far.
With the excellent contracts on the young core, Hughes will be positioned to go after a mega star or two in free agency. Not only will he have one of the most talented young rosters but he will have the benefit of being able to pay ELC to many of the next wave which is why I mention one or possibly two. Its a 25 million increase over 3 years,
How many teams can offer a top player in the world:
1- a contract of 150 million over 6 years
2- one of the most talented under 25 groups in the NHL with a great mix of cohesive skills and attributes- speed, size, passers, shooters, toughness, grit, etc.
3- ownership willing to spend to the cap
4. Favourable odds at winning the Stanley Cup each year of the deal as management is focused and disciplined
5 Excellent team culture- the room is very fun, compassionate and yet professional.
6- an iconic hockey city with the most passionate fans in the world.
The list of teams that can provide a superstar with all that would be very narrow.
-Chicago is years behind us in the rebuild
– Columbus ownership won’t spend to the cap,
-Anaheim, they don’t have their young core locked up long term favourable like we do.
-San Jose maybe but a few years behind us
-Detroits young group isn’t as talented as ours
-Ottawa ? Won’t have our financial flexibility
-New jersey, maybe but the pipeline isn’t great
– Utah? Perhaps
Pretty thin list of maybe a couple of teams that could compete under those criteria. Yes, there are climate and language and tax issues but I suspect the positives overcome the obstacles. Interesting to consider. Next logical progression is to start considering who might be targeted in a couple of years.