New Jersey Devils Carrying Dead Cap Into 2024-25

General Manager Tom Fitzgerald has done a pretty good job at managing his salaries. Therefore, the New Jersey Devils have a decent chunk of money to work with this summer. However, the Devils could have been working with a little bit more, yet are carrying over some dead cap space into the 2024-25 season.

As of July 1st, the Devils will have $1,788,897 already on the books as a result of dead cap space. Of the 22 teams carrying dead cap into next season, the Devils rank 15th.

The Devils’ near $1.8 million in dead cap space isn’t the worst news. The reason why New Jersey is beginning next season short-changed is due to a recapture penalty and carryover bonus overages.

What is a recapture penalty, you ask?

The recapture penalty makes sure that a team is affected by the full value of a contract should a player happen to retire early.

Retired? Who retired?

Oh that’s right.

The Devils are entering the FINAL year of Ilya Kovalchuk‘s recapture penalty — which will cost them $250,000 this year — after the Russian forward retired three seasons into his 15-year, $100 million deal with the Devils following the 2012-13 season. In one year from July 1st, New Jersey is finally free from Kovalchuk’s shackles.

As for the remaining $1,538,897, that money is to be paid out to current Devils players in carryover bonus overages.

Basically, the Devils maxed out their salary cap last season, so now, New Jersey needs to reach into the 2024-25 budget to pay out their contractually obligated bonuses to the players who earned them.

For example, Simon Nemec‘s contract had a $3.25 million performance bonus in his contract last season. Luke Hughes had one for $925K, and Alexander Holtz for $850K.

The Devils also have eight players who receive signing bonuses on July 1st.

The Minnesota Wild are carrying the most dead cap into 2024-25, a whopping $15,168,588, largely due to the buyouts of Zach Parise and Ryan Suter. In the Metropolitan Division, the Philadelphia Flyers and Pittsburgh Penguins rank ahead of the Devils with $5,483,095 and $2,479,167 of dead cap space respectively.

There won’t be any recapture penalties in 2025-26, barring a sudden/unexpected retirement from a long-term contract in New Jersey. Nemec, Hughes, and Holtz are eligible for performance bonuses again next season.