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07-03-2013, 10:39 PM
  #134
phlocky
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If you want to get a player to sign for a lower cap hit you front load the contract as much as possible. Giroux could take 10 mil for the first 3 years, 6 mil for 1 year, and 5 mil for 4 years. that's a cap hit of 7 mil per but when you account for the "Time value of money" (and econ term) and interest/dividends from investing the money, it would average out to 8 mil average or more. It would be a win-win scenario.

This is the EXACT reason that many contracts are front loaded (plus for older players it lets them retire early if they want and not leave money on the table).

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