The Penguins have officially placed Justin Schultz on long-term injured reserve.
Nothing has changed with Schultz's injury status -- he's still expected to be out four months -- but paper transactions were necessary first to receive the maximum cap relief from moving Schultz to long-term injured reserve.
As reported yesterday, defenseman Jeff Taylor was recalled from Wilkes-Barre/Scranton in a pure paper transaction. Taylor's contract brought the Penguins as close as possible to the salary cap, with only $42,970 in space. Now, the Penguins will receive nearly the full value of Schultz's contract in cap relief -- his $5.5 million cap hit minus the $42,970.
Because Schultz is now on long-term injured reserve, the Penguins will not accrue any of the daily unused cap space that they could bank for future use. The long-term injured reserve cap-relief will last only as long as Schultz is on long-term injured reserve. For Schultz to return, the Penguins must again be cap-compliant.
Taylor was reassigned to Wilkes-Barre, as his cap hit is no longer needed on paper. He never had to report to Pittsburgh, but his day on the Penguins' active roster banked him a nice $3,992.