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02-08-2011, 09:02 AM
Join Date: Jun 2010
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Originally Posted by DUHockey9 View Post
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.

And in the case of the Pens would need to be back under the cap space by next season, which means they would need to pick up an expiring contract. The Savard issue may be a bit different because his ability to come back is possibly never.

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