Over the past two seasons Flyers fans may have heard of two potential re-signings that couldn’t take place because of “tagging space”. Currently that re-signing is Matt Carle, whereas last year it was Ville Leino. Ultimately, Leino ended up signing a contract with Buffalo once he hit free agency, and we’ll have to wait to see how the Carle situation plays out.
As detailed in the Collective Bargaining Agreement Section 50.5 (f)(iii)
(iii) A Club shall only be permitted to sign a Player to an “extension” of the existing SPC in the amount of: (A) the SPC of the Player to be extended (then included in the Club’s Averaged Club Salary); plus (B) the Club’s Payroll Room in the current year; plus (C) the aggregate Averaged Amounts of any other SPC or SPCs that expire at the end of such League Year (to extent the Club has other such SPCs which are currently counting in the Club’s Averaged Club Salary); minus any previously Tagged Payroll Room. The Tagging Rule referred to in paragraph (e)(iv)(C) above will thereafter apply.
Illustration #1: A Club, during the 2005-06 League Year, has $1.5 million of Payroll Room, and it has $4 million in Averaged Amount of SPCs scheduled to expire at the end of the 2005-06 League Year, including the $1 million Averaged Amount of Player B’s SPC. The Club may “extend” Player B’s SPC during the 2005-06 League Year with Player Salary and Bonuses of up to an Averaged Amount of $5.5 million, and the Club shall be deemed to have $5.5 million of Tagged Payroll Room.
What the excerpt is essentially saying is that, no team is allowed to commit more than the current season’s upper-limit towards next season’s cap. This past season’s upper-limit was $64.3 million, so the Flyers are bound by that number until next seasons’ cap is officially in effect. Additionally, every player on the Flyers’ reserve list would count towards that tagging space.
Bill Meltzer had a great article detailing tagging space and how it plays into Carle’s situation.
In case you missed it:
CBA 101 Part 1: Waivers and Re-Entry Waivers
CBA 101 Part 2: 35+ Contracts – The Chris Pronger Story
CBA 101 Part 3: Slide Contracts
CBA 101 Part 4: Cap Space Calculations
CBA 101 Part 5: Long Term Injured Reserve