In a recent STN video, Montreal Canadiens General Manager (GM) Kent Hughes shared why the team has decided to retain Carey Price on the roster instead of placing him on the off-season Long-Term Injured Reserve (LTIR).
In this blog, I’ll share his reasons behind this strategic move and what it means for the Canadiens.
Reason One: The Canadiens Want to Preserve Salary-Cap Flexibility
The Canadiens have been carefully evaluating their salary-cap situation as they approach the start of the new season. Hughes highlighted that a key factor in their decision-making process was the desire to maintain salary-cap flexibility. He noted that, while placing a player on the offseason LTIR has some advantages, it also comes with significant drawbacks. The main one for him as the GM is the loss of flexibility during the season.
Reason Two: Hughes Has Learned Lessons from the Past
Hughes noted that they had considered the offseason LTIR route before but opted against it in previous years. One major concern is that, when a player is placed on the LTIR during the offseason, the allocated money is essentially locked in. Even if the money is not fully used, it’s still impossible to get to later.
This lack of flexibility can become problematic down the line, especially if the team encounters injuries, recalls players, or incurs bonus-related expenses during the regular season.
Reason Three: The LTIR Process Is Complex
Hughes noted that using LTIR is not as straightforward as it might seem on the outside. Hughes emphasized that it involves careful planning and consideration. Yes, he suggested, it can free up cap space initially. However, he added that it carries its own set of complexities. These include potential overages that could impact the following season’s cap.
Hughes Noted the Carey Price Situation
Speaking specifically about Carey Price, Hughes shared that putting him on LTIR during the offseason is challenging because using up his full $10.5 million salary in-season can become complicated. However, he clarified that this does not rule out the possibility of considering LTIR for other players when the team thinks it makes sense or is seen as necessary.
Hughes Believes Using LTIR Requires a Delicate Balancing Act
One of the most interesting things is hearing Hughes talk about LTIR. From my limited understanding, the process seemed simple enough. In fact, fans seem to think it’s sort of a magic bullet for general managers to free up some player “spending money.”
However, according to Hughes, managing the salary cap effectively in the NHL can be a high-stakes balancing act. Teams must consider many factors. These include player salaries, injury situations, and long-term planning.
For Hughes, the Canadiens are committed to making decisions that prioritize both short-term and long-term cap flexibility. And the second — cap flexibility — is the key to his decision this off-season.
The Bottom Line
The Canadiens’ decision to retain Price on the roster through the offseason is a strategic move aimed at preserving salary-cap flexibility. As Hughes noted, although the off-season LTIR can provide immediate relief, it carries complexities and limitations that the Canadiens hope to avoid.
That said, Hughes noted that the Canadiens will continue to evaluate their options to ensure the team makes the best decisions to position the team for success in the upcoming season.
More must-reads: