: Salary Cap:
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01-01-2009, 11:33 AM
Join Date: Jan 2007
Originally Posted by
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?
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