: News Article:
Pronger's contract investigated
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08-01-2009, 01:10 PM
FHM 13 researcher
Join Date: Feb 2004
Originally Posted by
Ignatius J Reilly
The one thing I don't understand is how a frontloaded contract works with the cap hit after a player retires. I understand that while he is active the salary is averaged for a cap hit (7 yrs/35M=5M cap hit) regardless of how the deal is structured, but let's say the Flyers pay out 25M in four years, does the cap hit go to 3.3M for the remaining three if he retires with three years left on the deal?
I am pretty confused about how this contract will affect the Flyers' financial dealings and why a 1.25 or 1.5M annual savings over his cap hit with Anaheim is worth all this headache.
No, a contract is frontloaded to lower the contract average.
If you have a 5 year contract worth 25 million, you can spread out the millions pretty much how you want to (not really, but anyway). The average salary (25mm in 5 years) is 5 million. The average salary is also the cap hit. And the cap hit is written in stone, it wont change for anything.
And for a team with little or no cap flexibility 1.5mm is certainly a lot
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