How do mid-season contract extensions effect the cap?

Discussion in 'Fugu's Business of Hockey Forum' started by o-dog, Aug 12, 2005.

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  1. o-dog

    o-dog Registered User

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    Sorry if this has been addressed before, but my understanding is that the cap number is not based on the players salary for that year, it is an average of the total money by the duration. i.e. Rick Nash is making $3.5M this year but what counts against the cap is $5.4M.

    So what happens in the case of a player getting an extension halfway through the year? There's a few big name players this year that have the option of signing a one year deal to get to UFA status for next year. If guys like Hossa and Lecavalier can't agree to a long term deal now and take the one year offer, and then the team comes back in January with some huge offer over 3 more years, how would that impact this years final cap number, if at all?
     
  2. Trizent

    Trizent Registered User

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    Say Player A has contract from 05-06 season for $2M.

    He signs 3 year extention $12M (4M / year).

    His 05-06 remains at $2M toward cap, extention is basically treated as a separate contract. It doesn't affect current year's compensation.
     
  3. kdb209

    kdb209 Registered User

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    The CBA FAQ implies otherwise:
    This strongly implies that the extention can affect/increase the cap hit in the current year. The wording ("or as computed for future years") implies possibly a choice - average the extention $$$s over the additional years or the current and extention $$$s over the current and additional years.
     
  4. Tico

    Tico Registered User

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    Wow.

    Unless there's some period for exclusive negotiations after the season/before free agency period that's already been spelled out in the new CBA, this would seem to encourage a ton of player movement - intended or otherwise.

    If a player has blossomed for a team (e.g. Crosby) and is in their last year, Pitt would want to have exclusive rights to renegotiate with that player without tampering from other teams. Pitt would have to take the cap hit during the season itself for the future salary for an extension (tieing their hands if they chose this route for Crosby's last contracted season) OR risk losing him to other teams who have the ability to bid the max after the season when the hit wouldn't go against the Pens cap.

    Hope folks REALLY love the jersey, because the guys in it are going to be changing all the time...
     
  5. RangerBoy

    RangerBoy TRUST THE PROCESS

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    Read where a team can only sign a player to an extension after January 1
     
  6. Tico

    Tico Registered User

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    Rangerboy - not sure if that's directed at my post, but don't think it changes the context any. If it does, can you explain how?

    Thanks
     
  7. tmg

    tmg Registered User

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    You sure about this?

    Because I could have sworn Kyle McLaren signed an extension on August 11.
     
  8. RangerBoy

    RangerBoy TRUST THE PROCESS

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    Mike O'Connell on Sergei Samsonov

    http://bruins.bostonherald.com/bruins/view.bg?articleid=97541&format=

    Samsonov signed his QO instead of signing a longer term deal so he can't sign an extension with Boston before January 1,2006
     
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