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irvine
PickupHockey Veteran
Canada
1315 Posts |
 Posted - 01/28/2010 : 17:19:04
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Okay, so I am fairly sure this how the Cap hit per season is determined, but I want to be sure.
You take the player in question, take their salary per year (on multi-year deals) and average that number out, giving you their Cap hit per year?
Also, after each year (assuming they make different amounts per say -- Year 1 $5M, Year 2 $3M, Year 3 $8.5M) if after Year 1, does the average then change since that season of the contract no longer exists? Thus, changing the Cap hit? Or will the cap hit stay the same as it was, when they initially signed the contract?
Irvine/prez.
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Guest4022
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Posted - 01/28/2010 : 17:32:34
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I could be wrong, but I'm fairly certain that each players salary per year is defined in their contract, and that amount per year is what would count against the cap.
So like you said: Year 1 $5M - cap hit of $5M; Year 2 $3M - cap hit of $3M; Year 3 $8.5M - cap hit of $8.5M.
That's why sometime's you'll see top heavy contracts, so GM's can pay them the big bucks in the present time so that they'll have more flexibility in the future to make other moves. |
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Guest9661
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Posted - 01/28/2010 : 17:59:50
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quote:
Originally posted by irvine
Also, after each year (assuming they make different amounts per say -- Year 1 $5M, Year 2 $3M, Year 3 $8.5M) if after Year 1, does the average then change since that season of the contract no longer exists? Thus, changing the Cap hit? Or will the cap hit stay the same as it was, when they initially signed the contract?
Nope. For your example, the cap hit for that player is 5.5M ((5+3+8.5)/3) for the entire 3 years.
As for the 4022 post, that too is wrong. Top heavy contracts have nothing to do with cap hit per se. What top heavy contracts allow is for
1. Lower total cap hit. For example, take your sample player above, if you add a fourth year at $1M you would reduce that player's cap hit from 5.5M to 4.4M (or there about).
2. Easy buy out and trade. Again with your sample player except order the from highest to lowest earlier on, so yr1 - 8.5M, yr 2 - 5M and yr 3 - 3M, interesting things happen when you decide to buy out the player, the team gets a cap credit if they buy him out in yr. 2 and 3. A bigger credit if they buy out at yr 3. Note, though a credit is given in yr 3 of the buy out they remain a cap hit still for the next year at half the buy out. So if they buy out at yr 3, the buy out is something like 50 or 80% (depending on age) spread over twice the remaining years. So 3M would be a cap hit of 1.5M (assume player qualifies at 50%) over 2 yrs (twice the remaining 1 yr left). So in yr 3, the player's cap hit is actually negative 4.75M (5.5 - 0.75). But yr 4, they player is still taking up 0.75M of cap space too. Note after a certain age, the player's cap hit can't be removed regardless if they retire or are bought out. However the player's salary would not count if they were injured (see Mike Rathje).
Easier to trade because, you have already paid the high salary early. So the team that acquires the player only pays $3M in yr 3 in salary. However the player's cap hit is still 5.5M on his new team.
There are other minor loopholes that are possible to circumvent the cap and for more info look up the NHL.com website. |
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Beans15
Moderator
Canada
8286 Posts |
Posted - 01/28/2010 : 21:56:24
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Yep latest guest is right. Cap his is total value of contract divided by total years of contract. Bonus are a little different, but overall the math works.
A 5 year, $25 million contract is a $5 million cap hit to the team for the entire term of the deal. The deal may be $8 million year one, $8 million year 2, $4 million year 3, $3 million year four, and $2 million year five but each year, regardless of the salary, the cap hit is still $5 million.
And, no contract can drop by more than 50% year over year. So a deal can not go from $10 million a year to $2 million a year, for example.
This site has some pretty good info on the Cap. http://nhlnumbers.com/ |
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irvine
PickupHockey Veteran
Canada
1315 Posts |
Posted - 01/29/2010 : 17:19:01
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Well, that is what I said? heh.
quote:
You take the player in question, take their salary per year (on multi-year deals) and average that number out, giving you their Cap hit per year?
Which, would be the formula you suggested. You just made it a little more complicated than it is. lol.
Irvine/prez. |
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Guest9661
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Posted - 01/29/2010 : 20:12:06
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quote:
Originally posted by irvine
Which, would be the formula you suggested. You just made it a little more complicated than it is. lol.
No Irvine you asked if the cap numbers changed if the salary changes from year to year. The answer is no the player's salary cap does not change (not taking into consideration buyouts or bonuses). |
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Salary Cap Hits 
