Re: Question re LTIR
posted at 9/27/2010 2:42 PM EDT
In Response to Re: Question re LTIR
As far as I understand the cap, it is calculated on a day-to-day basis and
in total at the end of the year. For day-to-day cap management, at no point in the year may you exceed the cap in total player salary. exceptions:
1. LTIR, you may exceed the cap up to the amount of the player on LTIR's salary for a replacement player
. Or, simply but not exactly, a player on LTIR's salary does not count toward the cap (for day-to-day calculation) while he is on LTIR.
2. Bonuses (earned or not) do not count toward the cap for day-to day calculation. You may exceed the cap by up to 7.5% in potential bonus money. (not every year is done this way)On the side, you do not need to divide total cap space by # of days ($59.4M/186) for D2D calculations, it works out the same since you would also be dividing each players salary by 186 (# of days).
This means that you may not
save up salary for a later day. as in having a $50M payroll the first half of the year, saving up $4.6M in space ($9.4M/2), then having a $62M payroll the second half and finishing with total salary paid out of $56M, $3.4M under the cap. Day-to-day cap calculation prevents this. I believe this answers Devanjan's and Bookboy's Questions.
This is also how the cap is calculated in the Playoffs. (day-to-day)
Now on to End of the year cap calculation. This is total salary paid including all earned
bonuses and some LTIR salary. calculating how much LTIR salary is included gets a little tricky.
To the best of my understanding, the amount of the LTIR salary that exceeds the cap does not count, but the amount that fits under the cap does count. example: we have a total team salary of $62M, with a player earning $4M on LTIR. The $1.4M portion still under the cap ($59.4M) would count at the end of the year, but the $2.6M overage would not. You would have to calculate these bits daily as DrCC did but im not going to get into that, this post is already long enough. :)
So at the end of the year you add together all regular salary with LTIR salary as stated above, and (since you cant exceed the cap on a D2D basis) you get a number at or below the cap. You then add in all earned bonus money and if you end up over the cap you get penalized that amount next year against the cap, just as the bruins and about 8 other teams did last year. And with $3.6M In potential bonuses to Recchi and Seguin this year, Chiarelli will have to try and stay at around $57M or so to avoid another penalty. It will be tough, for as long as Sturm and/or Savard are on LTIR we will be at the ceiling before
counting bonuses. Don't expect any trade deadline additions this year. Sorry for the length.