SR24 Posted January 4, 2020 Share Posted January 4, 2020 Can someone explain to me how much a deal effects the cap? For example let’s say we have $80mil in cap space, sign Joe Thuney to a 4 yrs/48 mil contract. What would our cap hit be after that deal?? Quote Link to comment Share on other sites More sharing options...
KRL Posted January 4, 2020 Share Posted January 4, 2020 It all depends on the contract structure. You can conserve cap space by giving the player a signing bonus which could be spread over the life of the contract 4 Quote Link to comment Share on other sites More sharing options...
Beerfish Posted January 4, 2020 Share Posted January 4, 2020 Well that is a tough question as there are 1001 ways to structure contracts with bonus money, guarantees etc etc. Hypothetical if the contract was evenly split over 4 years at 12 mill a year then we would have 68 million to spend after his contract for this year. Hopefully the real cap gurus will weigh in. 1 Quote Link to comment Share on other sites More sharing options...
thshadow Posted January 4, 2020 Share Posted January 4, 2020 Your question is kindof like, if I buy a car, how much will the payments be? There's the question of how much is guaranteed, and how quickly can we cut him. You could imagine you pay $14M/year, with the first 2 years guaranteed. That's the simplest. Then it just counts $14M against the cap this year. And if he's cut after 2 years, there's no more salary cap charges. Or you could give $4M signing bonus, plus a $10M salary this year, and $14M for the last 3 years. He gets the same amount of cash per year, but we'd only be charged $11M against the cap this year (because the $4m is divided among the 4 years). But then, if we cut him before the end of the deal, we have dead money. Essentially, the remaining $3M of the signing bonus has to hit the cap at some point, and it gets accelerated when we cut him. 2 Quote Link to comment Share on other sites More sharing options...
Jimmy 2 Times Posted January 4, 2020 Share Posted January 4, 2020 About a hundred dollars. 1 Quote Link to comment Share on other sites More sharing options...
SpankyJohnson Posted January 4, 2020 Share Posted January 4, 2020 1 hour ago, Jimmy 2 Times said: About a hundred dollars. Alright Rainman ? Quote Link to comment Share on other sites More sharing options...
bla bla bla Posted January 4, 2020 Share Posted January 4, 2020 3 hours ago, SR24 said: Can someone explain to me how much a deal effects the cap? For example let’s say we have $80mil in cap space, sign Joe Thuney to a 4 yrs/48 mil contract. What would our cap hit be after that deal?? Average annual salary would put that at $12m per year. Most people tend to think of contracts like this however it depends on guaranteed money and signing bonus. For a 4 year deal let's say you had an $8m signing bonus. 2020 - $2m 2021 - $2m 2022 - $2m 2023 - $2m The idea of a signing bonus gives the player money up front while distributing the cap hit over the life of the deal. Since the money is already paid out, if you were to cut that player in 2022 the remaining $4m would accelerate and hit the 2022 cap. (Barring a June 1st cut) As for the rest of the deal most teams front load contracts so they are not stuck in bad contracts for too long. Contracts can be structured however the team wants though. Jimmy G got like $45m last year but his average annual value is $27.5m Quote Link to comment Share on other sites More sharing options...
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