Originally Posted by Wallace108
I'm not a numbers guy, and I've never understood the salary cap. We NEVER sign big-name free agents and rarely give big contracts to our own players, yet every year we struggle to get under the cap. Meanwhile, other teams are signing big-name free agents every year.
i think the common misconception is that the salary is evenly distributed over the length of the contract. such as a 5 year 50 mill contract would cost a team 10 mill against the cap every year for 5 years for that player .....wrong.
they backload the salaries in a way so that if they choose to cut the guy after 3 years of the 5 , they won't still have him on the payroll or at least have it so its a manageable amount
contracts aren't guaranteed unless its stipulated in the contract. ...like holmes deal calls for 24 of the 50 mill guaranteed so his deal would look something like this....
2011 - 8 mill bonus
.............1 mill base salary
2012 - 8 mill bonus
.............1.3 mill base salary
2013 - 8 mill bonus
.............1.7 mill base salary
28 mill paid
2014 - 10 mill base salary
2015 - 12 mill base salary
they have all the guaranteed money paid in the first 3 years , so they could cut holmes after that and he won't see the remaining 22 mill of the contract. and it cost them nothing to cut him.
under the old CBA a players salary could not increase by more than 30 % a year. this kept teams from pushing all the money into the future.
* DISCLAIMER *
.... I MAY BE WRONG ABOUT EVERYTHING..