Quoting: Banks
What limit are you referring to?
No limit that is coming to mind.
So, a lot of teams are actually over the cap, but there is a cushion to take into account LTIR, and performance bonuses for ELC and one year deals for players over 35. So, let's take, for example, the Bruins. They're going to have Zdeno Chara with 1.75 million in bonuses next year, and let's just say for the heck of it, Jack Studnicka has 1.25 million in bonuses in his contract, and makes the team. That 3 million counts against the cap, but, they're allowed to exceed the cap, in that amount. Let's say that David Krejci gets hurt and is out for the year, and his 7.25 million is on LTIR. Well, they're allowed to pick someone up to replace that money, but it does, still count against the cap. So in this scenario, if the Bruins spent every dollar that was allowed, they would be 10.25 million over the cap, but, due to LTIR replacement money, and the bonus cushion, they would be allowed to do it. You can't just keep on doing that forever. I'm not 100% sure what the number is, but I know it's either 15% or 20% (20% would make all the sense in the world, because it's the maximum player contract). So, No matter what, a team cannot be more than 20% over the cap, even with LTIR and bonus cushion and all that.
This team has 14.825 in money on the LTIR (This is an awful idea for a number of reasons, one being you can't, "bank," ltir room as you can bank cap room, and another being I believe at the beginning of the season you have to be cap compliant with that LTIR money on the books, so some ridiculous juggling of waivers would have to take place, and some good players actually might be exposed), and if the cap is 83, no team will be able to go more than 16.6 over the cap. So, for example, let's assume that Jake Muzzin goes down with an injury and is done for the season and Dubas wants to go out and get a replacement, well....you're SOL because once you add his money to the LTIR pile, you're at 18.825, and you can't use that LTIR replacement money. So, in essence, it isn't an LTIR limit, but it's an "exceeding the cap," limit.
I'm sure you know all of this, but I figured I'd plop some examples out here for the others.