Quote:
Originally Posted by bigrangy
From my understanding, you need to actually be over the cap to gain relief from LTIR. So right now the Flames have 15 million in cap space. They could spend up to 15 + 7.3 (10% of the cap) = 22.3 right now, as long as they get under 73 by the start of the season. Also, if they are over the cap at the start of the season, they can place Smid's 3.5 on LTIR (if he is injured), and then they'll get cap relief up to 3.5 million. So if their cap is at 76.4 at the start of the season, they LTIR Smid and end up with 0 cap space. If their cap is at 73.8 at the start of the season, they still have 0 cap space after putting Smid on LTIR. You "save" more space by spending more, it's sort of unintuitive.
The way the LTIR relief works is stupid imo, but I'm sure there's a good reason for it to be the way it is.
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But it isn't' just your cap situation at the start of the year that is relevant, correct?
For example, you have $1 million in cap space at start of year but if you put Smid on LTIR, you could exceed the cap later in the year (e.g: deadline acquisition). Is that correct?
Cap space, in of itself, is not really important. It's the flexibility to make other moves that is the benefit.