Helene St. James of the Detroit Free Press has confirmed that Tomas Holmstrom signed his new two-year contract with the Red Wings on Monday. Here is a rundown from St. James on what the salary cap situation looks like with Holmstrom now officially on board:
Tomas Holmstrom officially signed his two-year deal Monday, putting the Wings at $52.245 million in salaries toward next season. The cap is expected to rise $2 million to $58.8 million, leaving roughly $6.5 million in cap space. Besides re-signing Bertuzzi and the five restricted agents, the Wings will use what is left toward a veteran defenseman -- possibly Andreas Lilja -- and seeing if there's a gritty forward available via free agency.
Because Homer signed a two-year deal, it gave the Wings a little bit of extra cap space. While the difference may seem small, every little bit of money left over helps to give the Wings some added flexibility.