All contracts, of 8 years or less, calculate the cap hit by adding up the notional value of all the payments and divide by the number of years, REGARDLESS OF WHAT YEAR THEY ARE RECEIVED - in other words, all contracts calculate the cap hit, based on face value.
So it is up to the player and team whether they want front loaded, back loaded, or whatever - doesn't matter with respect to the cap.
This contract, because it goes beyond 8 years, is allowed to discount the cash flows. That creates an opportunity to have a cap hit that is less than the total payments. I don't understand why people are struggling to understand this. The issue here is not the time value of money, the issue is that these types of contracts can reduce the cap hit, compared to contracts within the 8 years.
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