Shady Machine
Registered User
- Aug 6, 2010
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I don't understand why they would treat player contracts one way (proratable) throughout the CBA and then switch without detailed disclosure or explanation.
Because if you are correct the pens literally could not call up a guy like Dumo or Megna (cap hit in the .85 range) right now as their contracts would also have to go dollar for dollar atthe full amount since they have been recalled after the LTIR threshold and would thus be considered replacement players.
I don't know. I have a strong love/hate with the salary cap.
From Capgeek:
http://web.archive.org/web/20141005074923/http://www.capgeek.com/faq/how-does-long-term-injured-reserve-LTIR-work
BASIC IN-SEASON EXAMPLE
The upper limit is $70.0M. A team has a cap payroll or Averaged Club Salary of $69.0M on the day a player with a $4.0M cap hit is placed on LTIR. The team is now eligible to spend up to a new upper limit of $73.0M ($69.0M + $4.0M).
However, had the team recalled a player with a $750K cap hit prior to the LTIR designation, increasing its cap payroll or Averaged Club Salary to $69.75M, it would have been eligible to spend up to a new upper limit of $73.75M ($69.75M + $4.0M).
Likewise, had the team recalled two players each with $500K cap hits prior to making the LTIR designation, increasing its cap payroll or Averaged Club Salary to exactly $70.0M, it would have been eligible to spend to a new upper limit of $74.0M ($70.0M + $4.0M).
In the above example — where the team maximized their cap space with the $1.0M recall to get a new upper limit of $74.0M — the team could demote the two $500K players the day after the LTIR designation is made, reduce their cap payroll or Averaged Club Salary to $69.0M, and have the ability to add a cap hit via trade of exactly $5.0M.
That, of course, would only be a viable option if the player projects to be on LTIR through to the final day of the regular season. In addition, that $5.0M figure does not increase as the season progresses, because as mentioned above, LTI cap space cannot be “banked” for future use.
These simple examples illustrate why teams in LTI situations often make what sometimes appear to be inexplicable one-day recalls and demotions. They’re manipulating their team’s cap payroll or Averaged Club Salary in order to maximize their cap space going forward.
Please note the numbers and scenarios in this example are simplified for ease of understanding.
Please note the bold for emphasis. It doesn't say "they can add a pro-rated cap hit of 5MM, it says they can add a caphit via trade of exactly 5MM.
That's about as black and white as I can find.
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