The NHL and the National Hockey League Players Association have reached a tentative agreement on a new collective bargaining agreement that will take effect July 1.
The agreement would bring the two leagues together under one umbrella and give both teams the ability to pursue an expansion bid for the 2024-25 season.
The agreement is one of a number of tentative agreements reached during the NHL lockout, which ended in late June.
It includes a number issues that are expected to be addressed at the bargaining table.
The league’s front office and player association agreed to a $6.9 billion salary cap, which will help prevent the league from having to take on excess debt.
The cap will also allow for expansion teams to join the league.
The deal also includes a new tax-free and tax-deductible tax credit for fans, which can be used for new arenas.
The deal was reached in a private meeting between NHL commissioner Gary Bettman and NHLPA President Donald Fehr.
The two sides met several times to discuss the terms of the agreement, which was finalized late Wednesday.
The new agreement would include a new salary cap of $68 million, which would be a 15 percent increase over the $56 million that was in the current agreement.
The new cap will allow for the teams to increase their payroll by $4 million each, or roughly $1.1 million per team.
This could allow teams to spend $2 million more per team in the next season, according to the NHLPA.
The two sides also agreed to keep a salary cap in place for all 32 teams, which the league previously said would take effect in 2021-22.
The salary cap would be set at $72 million for all teams.
The NHLPA will receive $12 million in compensation per team per season from the new CPA and a $1 million salary cap relief for teams that would have to pay more than $9 million per season.
Teams that would be affected by the increase would be allowed to adjust their spending in some way, but would not be able to increase salaries.
The CBA would also set the salary cap at $74 million for the next two seasons, but the NHL and NHL Players Association are hoping to keep the cap at that level.
The union is hoping that the new salary structure will allow the league to continue to attract top talent and keep players like Auston Matthews, Logan Couture, Justin Schultz and Joe Thornton on the roster for the foreseeable future.