Impact of Savard and Malkin Injury
View Single Post
02-08-2011, 08:51 AM
Join Date: Jun 2007
I don't think what I wrote was very eloquent haha...
To try to be more concise, proration works as follows (making up numbers):
You're allowed to spend $100 over the course of the ENTIRE season (let's say 10 days), but I'm going to keep track of it daily, so you can only spend $10 every day. But you're only spending $8 every day over the first half of the year. So every day, you save $2. After day 5 you acquire a player who is paid $4 a day. So you're daily cap hit is now $12 a day. This is allowed, because you've been saving $2 a day the first half, so you can exceed $10 a day the 2nd half.
So if you were to just look at the YEARLY total with that $4 a day guy at the end of the year, you'd be looking at a $12 a day payroll which equates to $120 over a full season. But it's really $8 + $8 + $8 + $8 + $8 + $12 + $12 + $12 + $12 + $12 = $100.
That is why people talk about prorated contracts when looking at the yearly number. If you are utilizing LTIR AT ALL throughout the year that means you aren't banking ANY cap space, which means you CANNOT add a prorated contract. However, in Malkin's case, he isn't coming back. You are simply allowed to exceed the cap by his full amount. Quite simple.
View Public Profile
Find More Posts by DUHockey9