Updated for the 2026-27 NHL season. An NHL contract buyout lets a team end a player’s contract early while spreading part of the remaining cost and salary-cap charge into future seasons. It can create immediate cap space, but it also creates dead cap that can linger for years.

What is an NHL contract buyout?

A buyout terminates the remaining years of a player’s Standard Player Contract under the CBA’s buyout formula. The player becomes a free agent, while the former team continues paying a portion of the contract and carries calculated cap charges over an extended period.

How much does a buyout cost?

• Age 26 or older: generally two-thirds of the remaining salary.
• Under age 26: generally one-third of the remaining salary.

The buyout is spread over twice the number of years remaining on the contract. If a player has three years left, the buyout charges are spread over six years.

What happens to signing bonuses?

Signing bonuses are not reduced by a standard buyout. They are still owed to the player, which means contracts containing large future signing bonuses can produce much less cap relief than contracts built primarily with base salary.

Why does the cap charge change from year to year?

The cap calculation considers the player’s original cap hit, the salary saved by the buyout and any remaining signing bonuses. That can produce different dead-cap charges in different seasons instead of one flat amount.

When can teams buy out contracts?

The NHL has a primary offseason buyout window. In 2026, it opened on the later of June 15 or 48 hours after the Stanley Cup Final and closed June 30 at 5 p.m. ET.

Some teams can receive a second 48-hour buyout window after their final salary-arbitration case is settled or awarded. Additional eligibility restrictions apply to the player being bought out in that second window.

Why would a team buy out a player?

• Create short-term salary-cap room.
• Open a roster spot.
• Move on from a contract that no longer fits the team’s plans.
• Spread the financial and cap impact over more seasons.

The downside: dead cap

A buyout does not make the contract disappear. The team accepts future cap charges for a player who is no longer on the roster. That lost cap space is commonly called dead cap.

Simple example

If a player aged 26 or older has two years of eligible base salary remaining, the standard buyout ratio is two-thirds of that remaining salary, spread across four years. The exact annual cap hit depends on the contract’s salary structure and bonuses, so the cap charge is not simply the cash buyout amount divided evenly.

More salary-cap explainers

Read HockeyGamedayTV’s guides to the NHL salary cap, LTIR, and retained salary.

Rule references: NHL/NHLPA CBA and PuckPedia’s Buyout Calculator guidance.

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