Thread: Cap question
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06-21-2006, 02:09 PM
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Originally Posted by EndBoards
I'm about 99% sure what the answer to this is, but I'll ask anyway. I know that cap impact is the total salary divided by total years regardless of where the money is loaded. How do extensions relate to this though?

Player 'A' is at the end of a 2 year $10M deal. They made $5M in 05-06 and are slated to make $5M in 06-07. They sign a 2 year, $7M extension paying $3.5M in 07-08 and $3.5M in 08-09.

How does their cap impact break down for each year? Is it:
A) $5M in 05-06, $5M in 06-07, $3.5M in 07-08m, and $3.5M in 08-09.


B) $5M in 05-06, $4M in 06-07, $4M in 07-08, and $4M in 08-09.

In other words, when does an extension to an existing contract begin to take effect on a player's cap impact?

My guess is that "A" is correct - for the purpose of calculating a player's cap impact, the original contract and extension are treated as if they were separate contracts.

You are right - "A" is correct.

The extension is an entirely new SPC for cap considerations.

The only current season considerations when signing an extension is whether the team has enough cap room going forward to accomodate the extension next season:

Extension avg cap hit <= Current team cap room (based on current upper limit) + untagged contracts expiring after the season (including the extension players current contract).

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