The NHL is projecting a significant increase in the salary cap over the next three seasons, according to a memo the league and the NHL Players' Association sent to teams on Friday.

According to the memo, obtained by ESPN, the salary cap for 2025-26 will rise to $95.5 million, with a floor of $70.6 million. In 2026-27, it is projected to increase to $104 million with a floor of $76.9 million, and in 2027-28, it will again go up to $113.5 million with a floor of $83.9 million.

The NHL's current salary cap is $88 million with a floor of $65 million.

The NHL and the NHLPA agreed to the increased numbers to reflect the healthy growth of the league following the COVID-19 pandemic, which had kept the salary cap largely stagnant for several years. NHL revenue hit a record $6.2 billion last season, as the league also set new marks in attendance and saw a spike in sponsorship revenue, thanks to evolving attitudes on sports betting, helmet decals and showcasing individual players' personalities.

The memo told teams that there would be potential minor increases up or down for the 2026-27 and 2027-28 season, but sources told ESPN that both sides hope to hold true to these numbers barring unforeseen events.

The release of these projections early was a huge relief to NHL front offices, who can now better prepare ahead of the March 7 trade deadline and this summer's free agency.

This also comes at a crucial time for the league and players' association, which is expected to begin formal CBA talks sometime next month. The NHL and the NHLPA last negotiated during the pandemic; the current agreement expires in September 2026. Several NHL players told ESPN in the fall that their biggest concern in the upcoming CBA was getting a larger share of the pie.

Both sides have been hoping for a smooth resolution, with commissioner Gary Bettman saying he'd love to be able to announce a CBA extension as soon as June's Stanley Cup Final.