Auston Powers
Registered User
wow so front loading helps the cap hit? thats interesting. What's the upper limit in terms of front loading the contract to the max to help cap following years?
EDIT -- Didn't see your 6.5Mx6 and I did it above based on 7Mx6. Sorry about that. Below is updated results.
Based on 6.5M over 6 years:
$39,000,000 total cap hit
2018-2019 - $6,500,000
2019-2020 - $6,500,000
2020-2021 - $6,500,000
2021-2022 - $6,500,000
2022-2023 - $6,500,000
2023-2024 - $6,500,000
(today) Cap Hit (2019-2020 to 2024-2025) = ($6,500,000 * 160/180 + $32,500,000) / 6 = 6,379,629
(today) Cap hit (2018-19) = $6,379,629 * 180 / 160 = $7,177,083
Total earnings = $39,075,228
2018-2019 cap hit – $7,177,083
2019-2025 cap hit – $6,379,629 - 120K savings per year for 5 years
and if we front load it and he signed today...
$39,000,000 total cap hit
2018-2019 - $10,600,000
2019-2020 - $7,200,000
2020-2021 - $5,400,000
2021-2022 - $5,400,000
2022-2023 - $5,200,000
2023-2024 - $5,200,000
Cap Hit (2019-2020 to 2024-2025) = ($10,600,000 * 160/180 + $28,400,000) / 6 = 6,303,703
Cap hit (2018-19) = $6,303,703 * 180 / 160 = $7,091,666
Total earnings = $38,610,181
2018-2019 cap hit – $7,091,666
2019-2025 cap hit – $6,303,703 - 196K savings per year for 5 years[/QUOTE]