CBA Question

Discussion in 'The Business of Hockey' started by maruk14, Sep 4, 2005.

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  1. maruk14

    maruk14 Registered User

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    I am a bit confused by this. I haven't read the new CBA yet, but it has been reported that:

    If there are multiple years on a contract and said contract is front or backloaded the CBA hit is the average over the term of the contract and ....

    The cap number is dependant on what the team pays out over the course of the year in salary. I.E. picking up a player at the deadline only counts as the prorated amount of the contract, or moving players up and down from the minors will only count against the cap for moneys paid while on the big club.

    Aren't those two things in contradiction with each other? I mean, if you back load a contract and it is 1 then 1.5 then 2 for a total of 4.5 million, it sounds like the cap hit will be 1.5. At the same time, the team is only paying out 1 million for the year and the cap number is based on the total amount the team spends in salary. Does anyone else see the contradiction, or is there some specific language that addresses this situation?

    What if you trade a player with a backloaded contract? Does the salary paid out in the year the player was traded count against the cap, or the average of the entire contract? What about the team that is getting the player?

    Needless to say, this is pretty confusing
     
  2. Captain Ron

    Captain Ron Registered User

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    It does seem to get pretty confusing. But here is my take on the situation. the only way that the actual money paid and the contract average theory can coincide is that every contract is assigned a monetary figure for the season. That figure would then be used to determined the teams pro-rated cap at any point during the season.

    So if Player A has a 1 year contract at $2 million then his cap hit would be about $24,000 a game.

    Then Player B signs a back-loaded contract for

    Year 1: $1 million
    Year 2: $2 million
    Year 3: $3 million

    Even though Player B is only making about $12,000 a game in actual salary his cap hit amount would be the same as Player A.
     
  3. Wetcoaster

    Wetcoaster Guest

    The reason it is confusing is because the final version of the new CBA has not been released.
     
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