Thread: Salary Cap: Updated Salary Chart View Single Post
01-01-2009, 11:33 AM
#23
phlocky
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Join Date: Jan 2007
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Quote:
 Originally Posted by MountainHawk Yes, you are right, the explanation is misleading. The Earned LTIR Relief should be the (Team Cap Hit - Upper Limit) * 1/RS. Another made up example, to make sure I have it straight. The Upper Limit is \$50M. There are 180 days in the season for ease of computation. The Flyers are coasting along at \$48M until after day 60, when a \$3M player is injured, but the Flyers replace him with a \$6M player. My spent cap hit would be at \$16M. My future cap hit would be at \$51M*120/180 = \$34M. The Team Cap is now \$50M, so the LTIR relief would be \$0. Now, if instead they sign a \$8M player, the future cap hit is \$53M *120/180 = \$35.3M. The Team Cap is now \$51.3M, so the Flyers will have \$1.3M of LTIR relief for the 120 days, or \$1.95M annualized LTIR relief Each day that the player remains on LTIR, the Flyers earn 1/180 of that \$1.95M LTIR relief. If the player comes off LTIR after 60 days, they'll have \$0.65M of cap relief in the earned category, nothing in the future category, so they essentially have a Upper Limit of \$50.65M that the spent cap + future cap must stay under.
Yes, this is corret. I take it you were always very good at math in school?