Updated for the 2026-27 NHL season. Sending a player to the AHL does not automatically remove his entire NHL cap hit. The CBA allows only a set amount of cap relief for a high-priced contract assigned to the minors — the concept commonly called a buried contract.

What is a buried contract?

When a player on an NHL contract is assigned to the minors, the team can remove a limited amount of that player’s cap hit from its NHL cap calculation. If the cap hit is higher than the permitted relief, the rest continues to count against the NHL club.

What is the buried threshold in 2026-27?

For 2026-27, the NHL minimum salary is $850,000. The buried-contract relief is the league minimum plus $375,000, producing a $1.225 million buried threshold.

The team receives cap relief equal to the lesser of the player’s cap hit or $1.225 million.

Simple examples

If a player with a $1 million cap hit is assigned to the AHL, the full $1 million can come off the NHL cap because the cap hit is below the $1.225 million threshold.

If a player with a $3 million cap hit is assigned to the AHL, the club can remove $1.225 million. The remaining $1.775 million continues to count against the NHL cap.

Does a two-way contract change the cap hit?

No. A two-way contract changes how much the player is paid in the NHL versus the minors; it does not make the NHL cap hit disappear and it does not automatically make the player waiver-exempt.

What about waivers?

A player may need to clear waivers before he can be assigned to the AHL. Waiver eligibility and buried-cap relief are separate rules. A veteran can clear waivers, be assigned to the minors and still leave a significant buried cap charge on the NHL team’s books.

Why teams bury contracts

• Create as much cap relief as the CBA allows.
• Open an NHL roster spot.
• Give a player regular minutes in the AHL.
• Move on from an underperforming veteran without using a buyout.

The buried threshold rises with the minimum salary

Because the formula is the NHL minimum salary plus $375,000, the threshold rises as the league minimum increases. PuckPedia lists the thresholds at $1.225M for 2026-27, $1.275M for 2027-28, $1.325M for 2028-29 and $1.375M for 2029-30.

More roster-management explainers

Read our guides to NHL waivers, the salary cap, and LTIR.

Rule reference: PuckPedia’s Minimum NHL Salary & Buried Cap Hit guide.

More NHL rules explained: Visit the HockeyGamedayTV NHL Explainer Library for guides to contracts, free agency, waivers, LTIR, trades and the salary cap.