<p>Placing a player on LTIR doesn’t preclude the team from accruing cap space. It is a mechanism for a team to exceed the cap in order to roster an entire team. A team must both be over the salary cap and on LTIR in order to stop accrual.</p>
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<p>That’s what the Canucks did today. By recalling Jonathan Lekkerimaki and Cole McWard and <span class="css-1jxf684 r-bcqeeo r-1ttztb7 r-qvutc0 r-poiln3"><a href="https://canucksarmy.com/news/vancouver-canucks-recall-jonathan-lekkerimaki-cole-mcward-max-sasson-ahl-abbotsford">placing Filip Hronek on LTIR</a>,</span> the Canucks exceed the salary cap by around $8000 and halt accrual. Thatcher Demko and JT Miller are designated as non-roster players and Derek Forbort is on Injury Reserve but all three can be activated at any time. When 2 of those 3 are activated, the Canucks will be below the salary cap and begin accrual, even with Hronek on LTIR. Since Max Sasson was recalled after the Canucks entered LTIR, his cap hit and bonuses do not factor into pool calculations.</p>
<p>The in-season LTIR Pool is determined by the cap hit of the player entering LTIR, in this case Hronek, minus the total of cap space available. By adding 3 players to the roster and placing Hronek on LTIR, the Canucks maximized their LTIR pool to the amount equal to his cap hit of $7,250,000 minus $8471 for a total of around $7,212,529.</p>
<p>Another wrinkle is that this now sets the Canucks’ performance bonus pool. The performance bonus pool gets set when a team enters LTIR for the first time. This is the average annual value of all the performance bonuses on the roster at this time. If the average annual value of performance bonuses from players on the active roster is greater than the performance bonus pool, then the excess is subtracted from the LTIR pool. This is regardless if the players earn their bonuses. This matters if the Canucks remain in LTIR or enter it again at another point in the season. When a team is below the salary cap, performance bonuses are subtracted from whatever salary cap space is left at the end of the season. If there isn’t enough cap space, then the amount will be carried over to next year&#8217;s salary cap.</p>
<p>As of today’s transactions, the Canucks have two players on the roster that have performance bonuses that contribute to the performance pool: Aatu Raty and Jonathan Lekkerimaki. The Canucks’ performance bonus pool is now set at $540,833.33.</p>
<p>Given that the Canucks official timeline for Hronek to return is 2 months, this is seemingly a temporary measure. It would not be a surprise if several of these players are sent down shortly and the Canucks return to accruing cap space. However, if the Canucks need to operate in LTIR at any point in the season, the parameters for both the LTIR and performance bonus pools are now set.</p>
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Placing a player on LTIR doesn’t preclude the team from accruing cap space. It is a mechanism for a team to exceed the cap in order to roster an entire team. A team must both be over the salary cap and on LTIR in order to stop accrual.
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&nbsp;

That’s what the Canucks did today. By recalling Jonathan Lekkerimaki and Cole McWard and <span class="css-1jxf684 r-bcqeeo r-1ttztb7 r-qvutc0 r-poiln3"><a href="https://canucksarmy.com/news/vancouver-canucks-recall-jonathan-lekkerimaki-cole-mcward-max-sasson-ahl-abbotsford">placing Filip Hronek on LTIR</a>,</span> the Canucks exceed the salary cap by around $8000 and halt accrual. Thatcher Demko and JT Miller are designated as non-roster players and Derek Forbort is on Injury Reserve but all three can be activated at any time. When 2 of those 3 are activated, the Canucks will be below the salary cap and begin accrual, even with Hronek on LTIR. Since Max Sasson was recalled after the Canucks entered LTIR, his cap hit and bonuses do not factor into pool calculations.

The in-season LTIR Pool is determined by the cap hit of the player entering LTIR, in this case Hronek, minus the total of cap space available. By adding 3 players to the roster and placing Hronek on LTIR, the Canucks maximized their LTIR pool to the amount equal to his cap hit of $7,250,000 minus $8471 for a total of around $7,212,529.

Another wrinkle is that this now sets the Canucks’ performance bonus pool. The performance bonus pool gets set when a team enters LTIR for the first time. This is the average annual value of all the performance bonuses on the roster at this time. If the average annual value of performance bonuses from players on the active roster is greater than the performance bonus pool, then the excess is subtracted from the LTIR pool. This is regardless if the players earn their bonuses. This matters if the Canucks remain in LTIR or enter it again at another point in the season. When a team is below the salary cap, performance bonuses are subtracted from whatever salary cap space is left at the end of the season. If there isn’t enough cap space, then the amount will be carried over to next year's salary cap.

As of today’s transactions, the Canucks have two players on the roster that have performance bonuses that contribute to the performance pool: Aatu Raty and Jonathan Lekkerimaki. The Canucks’ performance bonus pool is now set at $540,833.33.

Given that the Canucks official timeline for Hronek to return is 2 months, this is seemingly a temporary measure. It would not be a surprise if several of these players are sent down shortly and the Canucks return to accruing cap space. However, if the Canucks need to operate in LTIR at any point in the season, the parameters for both the LTIR and performance bonus pools are now set.

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Explaining why the Canucks put Hronek on LTIR, and how it impacts their accruing of cap space

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