Leverage LTIR or Daily Savings?
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10-08-2011, 05:14 PM
Join Date: Mar 2010
Location: Ottawa, ON
Originally Posted by
You are wrong and that shows that you really don't understand how computing the cap actually works. I was going to stay away from this "pissing contest" but it's been bugging me since I've read this. Sorry but you are DEFINITELY wrong in this. I'll expand on our little $200 and 10 day season example and show you how it's REALLY done.
Before the season begins, teams start with $200 in their "bank". You divide the amount of money you have remaining in your "bank" by the number of days remaining in the season and that's the MAXIMUM amount that you can spend on player salaries ON A DAILY BASIS. when you add up all the players "single day cap hit" it cannot exceed this number (in our example it's $20 for day 1).
In our example, on day 1 we spend $19 on player salaries and thus, $19 is subtracted from our "bank" leaving us with $181. our "maximum daily cap limit" is recomputed and that $181 is now divided by 9 (the number of days remaining in the season). Our new "max daily amount" is now $20.1111111111.
On day 2 we spend another $19 and again this amount is removed from our "bank" bringing us down to $162 for the remaining 8 days. Again our "max daily cap" is recomputed and now it's $20.25 At this point in time, the average daily cap cost of our roster is just $19. We COULD, if we wanted to do so, add a player to our roster after day 2 that has an average daily cap hit of $1.25 or we could just keep "banking" this cap space.
Skipping all the way down to day 5, we again have a roster with a daily cap hit of $19 and again remove that amount from our "bank" leaving us with $105 left for the rest of the season. For the remaining days of the season (days 6 through 10) our maximum daily cap limit is recalucaled by taking the amount we have in our bank ($105) and dividing it by the number of days remaining in the season (5). $105/5day = $21/day max cap hit. This enables us to add a player with a $2 daily cap hit for the remainder of the season.
This is EXACTLY what the league does on a daily basis for every single team in the league. They use computers to do it because there are a lot of players moving in and out of each teams roster and the impact of players on LTIR have to also be accounted for but suffice it to say that our little example IS in fact the way it's done by the league. The daily amount you get to spend DOES change every single day. It's recomputed after every single day and every team gets a new number EVERY SINGLE DAY.
LTIR gets a little "funky" but I can add it to our little example if everyone is really THAT interested (I honestly don't WANT to have to do it but if another pissing contest erupts and more misinformation is spewed I probably won't be able to stop myself).
LOL - I was also going to quote VanSciver explaning the above and showing that the previous (although spoken as fact) statements were false. You are correct.
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