Changes to LTIR could directly impact how New Jersey Devils approach cap space

The New Jersey Devils have had an issue making the contracts all fit under the salary cap with a long-term Luke Hughes extension, but a wild card has always been Johnny Kovacevic's injury. Now, with new rules on long-term injured reserve going into effect this season, that card is no longer as valuable.
New Jersey Devils v Philadelphia Flyers
New Jersey Devils v Philadelphia Flyers | Mitchell Leff/GettyImages

The New Jersey Devils are looking into all possible angles to move as much money as possible to get a Luke Hughes deal done as soon as possible. Without making a trade, they can theoretically have a little over $8 million in cap space with a shortened roster (only one extra). Still, that’s not ideal since they will have to play like that until Johnny Kovacevic returns from his injury. Even then, they’ll be playing one player short and would have to put multiple players, like Nico Daws, Thomas Bordeleau, and Dennis Cholowski, on waivers. 

The ideal move is to make a trade. The Devils reportedly tried to move Ondrej Palat and took calls on Dougie Hamilton, but nothing came to fruition. On the Hamilton front, we expect that to be off the table. He’s too important to the current roster as constructed, but Palat could still move. However, it’s unclear who would want him at his full cap hit at this point in the offseason with training camp around the corner. 

The Devils have had an ace up their sleeve this whole time. Johnny Kovacevic is expected to miss some time, but we think it’s going to be longer than many believe. If Kovacevic is out until the calendar hits January, that gives the Devils time to trade Palat or another piece to make the salary cap work while still having Luke Hughes signed for the season.

However, clarification on the way LTIR works in 2025-26 could change how much that could impact things. 

The Devils have less LTIR relief than they thought

So, instead of getting Kovacevic’s full $4 million hit absolved while he’s out, they can only get $3.8 million. It might not sound like much, but the Devils are working with each dollar at this point. 

As currently constructed, with Kovacevic on LTIR, the Devils would have $9.9 million in available cap spending. That sounds like it should be enough to get Luke Hughes to sign for eight years, but if he’s asking for $10+ million, then the Devils don’t have enough. 

Things get worse if they are trying to make a larger contract work. Say Palat or Hamilton get injured. Then, unless they are out for the entire season, the Devils could only get $3.8 million in relief to add another player.

The immediate impact is small, but the implications are large. Teams aren’t able to put Nikita Kucherov or Mark Stone on the shelf and get the full value of their contract in a trade piece until the playoffs start. The NHL is addressing contract loopholes and striving to adhere to the salary cap. We’ll see how long until general managers find the next loophole.