Quote:
Originally Posted by ricardodw
Can anyone explain how the signing bonuses impact the cap.
Look at Erhoff's and Chara's contracts.
It seems that Buffalo was able to get Erhoff 40M in salary plus 13M in signing bonus for a 4M cap hit over 10 years.
For Chara the cap hit goes down in the last year of his contract to 4M..... his actual salary should he be playing at age 42.
His salary 45.5 = his total cap hit but his cap hit is 6.916M for 6 years and then 4M for the last year. Why wouldn't his cap hit be 6.5M for the whole 7 years?
Chara's contract seem to be somewhat ethical with spreading out the cap hit a bit and a salary of 4M at age 42 rather than 1M..... |
Signing Bonuses are already included in the total compensation, they're not in addition to the regular salary. So, if Erhoff's total compensation for a season is $10M with an $8M signing bonus, that means he received an $8M lump sum payment upon activation of the contract, and $2M paid over the course of the season.
Chara's has two different cap hits because his contract was one of the ones affected by the agreement the league and PA made over the Kovalchuk contract. Any contract years that start after the player's 40th birthday are counted separately from the rest of the contract. The cap hit for any 40+ year is charged at the full compensation level for that season.