Shainsaw
Registered User
- Feb 15, 2005
- 13
- 0
Please keep in mind that I am playing with the numbers a bit to make a point.
Player X is a highly sought after UFA. Other teams are bidding 7mil over 4 years for this player. The cap hit for this player would normally be 7 mil.
A rich team such as the Red Wings really wants this player but cannot have the high cap hit. Player X’s agent and the team prearrange a 10 year contact as follows:
Year 1 9 mil
Year 2 9 mil
Year 3 8 mil
Year 4 8 mil
Year 5 2 mil
Year 6 2 mil
Year 7 2 mil
Year 8 1 mil
Year 9 1 mil
Year 10 1 mil
The cap hit is the total contract divided by the number of years. The cap hit becomes 4.3 mil. The team makes a deal with the player that his contract will be bought out after 4 years. I believe to pay out buyouts the NHL team has to pay 2/3 of the remaining contract over double the time of the remaining contract.
Because of the CBA the player ends up getting the following salary with these cap hits.
Year 1 9 mil Cap Hit 4.3
Year 2 9 mil Cap Hit 4.3
Year 3 8 mil Cap Hit 4.3
Year 4 8 mil Cap Hit 4.3
Year 5 .499mil Cap Hit .499mil
Year 6 .499mil Cap Hit .499mil
Year 7 .499mil Cap Hit .499mil
Year 8 .499mil Cap Hit .499mil
Year 9 .499mil Cap Hit .499mil
Year 10 .499mil Cap Hit .499mil
Year 11 .499mil Cap Hit .499mil
Year 12 .499mil Cap Hit .499mil
Year 13 .499mil Cap Hit .499mil
Year 14 .499mil Cap Hit .499mil
Year 15 .499mil Cap Hit .499mil
Year 16 .499mil Cap Hit .499mil
The player ends up getting paid 34 mil over 4 years and can go play anywhere else after being bought out. He also gets a nice little savings plan for the next 12 years.
The team gets a cap hit of 4.3 for the four years they had this player even though he made an average of 8.5 mil a year. They then have to carry a cap hit of only .499 mil over the next 12 years. Money is not an issue to this team, but the cap hit is.
Have I screwed up somewhere, i don't know the CBA as well as alot of you.
Player X is a highly sought after UFA. Other teams are bidding 7mil over 4 years for this player. The cap hit for this player would normally be 7 mil.
A rich team such as the Red Wings really wants this player but cannot have the high cap hit. Player X’s agent and the team prearrange a 10 year contact as follows:
Year 1 9 mil
Year 2 9 mil
Year 3 8 mil
Year 4 8 mil
Year 5 2 mil
Year 6 2 mil
Year 7 2 mil
Year 8 1 mil
Year 9 1 mil
Year 10 1 mil
The cap hit is the total contract divided by the number of years. The cap hit becomes 4.3 mil. The team makes a deal with the player that his contract will be bought out after 4 years. I believe to pay out buyouts the NHL team has to pay 2/3 of the remaining contract over double the time of the remaining contract.
Because of the CBA the player ends up getting the following salary with these cap hits.
Year 1 9 mil Cap Hit 4.3
Year 2 9 mil Cap Hit 4.3
Year 3 8 mil Cap Hit 4.3
Year 4 8 mil Cap Hit 4.3
Year 5 .499mil Cap Hit .499mil
Year 6 .499mil Cap Hit .499mil
Year 7 .499mil Cap Hit .499mil
Year 8 .499mil Cap Hit .499mil
Year 9 .499mil Cap Hit .499mil
Year 10 .499mil Cap Hit .499mil
Year 11 .499mil Cap Hit .499mil
Year 12 .499mil Cap Hit .499mil
Year 13 .499mil Cap Hit .499mil
Year 14 .499mil Cap Hit .499mil
Year 15 .499mil Cap Hit .499mil
Year 16 .499mil Cap Hit .499mil
The player ends up getting paid 34 mil over 4 years and can go play anywhere else after being bought out. He also gets a nice little savings plan for the next 12 years.
The team gets a cap hit of 4.3 for the four years they had this player even though he made an average of 8.5 mil a year. They then have to carry a cap hit of only .499 mil over the next 12 years. Money is not an issue to this team, but the cap hit is.
Have I screwed up somewhere, i don't know the CBA as well as alot of you.