Huet signed for 2 years
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06-26-2006, 12:26 PM
Join Date: Jan 2004
Location: Montreal, QC
Originally Posted by
signing for $3M year 1, $2.75M year 2, $2.875M cap hit per year
$2.75M year 1, $3M year 2 would have done the same thing for the cap
... Because it's better for Huet?
$1 today is worth more than $1 tomorrow. That's a basic rule of economics/finance/accounting.
Money now can be spent (assuming inflation), invested, or saved with interest, all of which make it worth more than the same amount you'd be getting in a year's time.
So a deal that is front-loaded is more profitable for the player.
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