Quote:
Originally Posted by BlackBob
It does help and that's what I thought. Thanks man.  |
Well done, Mr. Fax. And welcome back! I was going to explain it like this.
You sign a player to a 5 year contract. The signing bonus is $5MM and each year the salary is $1MM.
According to the cap, it is a 5 year, $10 MM contract. The hit against the cap is $2MM for the next 5 years.
According to the bank account, it looks like this.
Year 1 - $6MM
Year 2 - $1MM
Year 3 - $1MM
Year 4 - $1MM
Year 5 - $1MM
Of course, this is a very simplistic example. There are all kinds of incentives (likely-to-be-earned and not-likely-to-be-earned), roster bonuses, guarantees, and of course, all of the years don't have the same salary.