Quote:
Originally Posted by The Cobra
Because of the deferred value of the contract, there is no cap circumvention here.
The present day value of the contract equates to the cap hit.
The contract is not in reality worth $18M to Vatrano.
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And here we go.
Contracts are NOT present valued. All contracts are notional, with the total dollar payout being divided by the number of years, to determine the AAV.
This contract is for $18M, and the player is under contract for 3 years, but the AAV is $4.57M
We all understand the present value of money, that is not the issues here. The issue is that contracts are notional, using the AVERAGE payout to determine the AAV, precisely for the purpose of not allowing teams to circumvent the cap by frontloading or backloading a contract.