What Is LTIR in Hockey and How Does It Affect the Salary Cap?

Long-Term Injured Reserve (LTIR) is a specific rule within the National Hockey League’s Collective Bargaining Agreement (CBA). This mechanism provides teams with an avenue to manage their roster and finances when a player suffers a severe injury expected to keep them out for an extended period. LTIR is a formal roster designation that allows for temporary roster flexibility under strict league guidelines.

Defining Long-Term Injured Reserve

A player’s injury alone does not automatically qualify them for placement on Long-Term Injured Reserve. The designation is a formal roster move with specific requirements tied to the duration of the player’s absence from competition. For a player to be eligible for LTIR, they must be reasonably expected to miss a minimum of ten National Hockey League games and at least 24 calendar days of the regular season.

This expectation is determined initially by the team’s medical staff, but the final eligibility for the LTIR designation is verified by the league. The NHL retains the right to question any assignment and may require independent medical confirmation of the injury’s severity and expected recovery timeline. Once a player is placed on LTIR, the league formally provides the earliest possible date the player can be activated to return to the active roster.

The Cap Relief Calculation

The most complex aspect of the LTIR designation is how it interacts with the NHL’s salary cap ceiling. A common misconception is that placing a player on LTIR removes their Annual Average Value (AAV) from the team’s overall cap calculation. Instead, LTIR does not remove the player’s cap hit but grants the team permission to exceed the standard Salary Cap Ceiling by a calculated amount, known as the LTIR Pool.

This LTIR Pool is calculated on the day the player is officially placed on the reserve list, based on the team’s cap space at that moment. The relief amount is determined by subtracting the team’s available cap space from the injured player’s AAV. For instance, if a player with a $6 million AAV goes on LTIR, and the team has $300,000 in existing cap space, the LTIR Pool is $5.7 million.

The team’s new effective cap ceiling becomes the standard cap ceiling plus the calculated LTIR Pool. This mechanism incentivizes teams to make roster moves to be as close to the cap ceiling as possible before placing a player on LTIR, maximizing the resulting relief pool. This pool defines the maximum amount by which the team can exceed the league’s official cap limit for the duration of the player’s absence.

Strategic Team Management and Player Activation

The cap relief provided by LTIR transforms into a significant strategic tool for team management, particularly as the season progresses. A team utilizing LTIR does not accrue cap space over the course of the season, which is a key difference from a cap-compliant team. This means that the calculated LTIR Pool on day one is the maximum relief available, regardless of how much time passes.

Teams often strategically use the LTIR Pool to acquire high-salaried players at the NHL Trade Deadline. Since the pool allows them to exceed the cap, they can absorb a contract they otherwise could not afford, adding a significant player for a late-season push. This is often tied to the “playoff loophole,” where the salary cap ceiling ceases to apply once the regular season concludes and the playoffs begin.

The eventual return of an LTIR-designated player requires the team to revert to cap compliance, which can force difficult roster decisions. When the injured player is medically cleared and ready to be activated, the team’s total AAV must be under the standard Salary Cap Ceiling, not the temporary LTIR-adjusted ceiling. This often necessitates immediate action, such as trading a player to clear cap hit, or assigning other players to the American Hockey League (AHL), to create the necessary space for the returning player’s full AAV.