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The Business of Hockey Discuss the financial and business aspects of the NHL. Topics may include the CBA, work stoppages, broadcast contracts, franchise sales, NHL revenues, relocation and expansion.

Cap hit question

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Old
04-07-2010, 06:53 PM
  #1
hpNYR
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Cap hit question

On a multi-year contract, the cap hit will be based on the average annual salary.
i.e., if a player signs a three-year deal paying $7 million in year one, $5 million in year two, and $3 million in year three, the salary cap charge is $5 million per year for three years.

BUT....You look at a guy like Michael Rozsival:
6 mill, 4 mill, and 3 mill....it says his cap hit is 5 mill but when you do the math its 4.3-- how does that happen?

Is it the bonuses? Do bonuses count against the cap hit?

Thanks.

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04-07-2010, 06:55 PM
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jessebelanger
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You need to include the entire contract..his salary the year before (08-09) was 7 million.



7+6+4+3 = 20
divided by 4 years
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04-07-2010, 07:32 PM
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LadyStanley
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Yes, bonuses are included in cap hit calculations.

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