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08-08-2005, 07:00 PM
  #11
craig1
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Quote:
Originally Posted by MentalPowerHouse
Why? Like someone said, either way the cap hit is the exact same. Time value of money suggests it's better to backload it if you can.
Outside of TVM issues (quitre frankly it's too short of a term to make a dramatic difference on NPV)...What if the Pens trade one of them?

Say they trade Palffy to Detroit for Datsyuk next year. (I'm just pulling something out of the air....I'm not claiming value or anything) Well, from a business standpoint, Detroit bears the brunt of the contract....cap hit won't change regardless. Still $4.5 million per year.

If he plays out his contract, or even gets hurt on opening night this year, it wil make no difference for the Pens (Again, too short of terms for NPV to be dramatically altered).

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