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Dead Cap

By jsid
11/19/2015 4:52 pm
I've just wanted to sort out a few dead cap questions. Let's take the following player as an example:

2015: Salary: $1M, Bonus $1M
2016: Salary: $1M, Bonus $1M
2017: Salary: $1M, Bonus $1M
2018: Salary: $1M, Bonus $1M

Question 1) If I were to cut the player, I understand the salary is gone, and I understand I get a $1M cap hit that season, but is it a $3M cap hit in 2016 or is it a $1M hit in '16, '17, and '18?

Question 2) Say the player was to retire at the end of 2015, is it a $3M cap hit in 2016? a $1M hit in '16, '17, and '18? or a $1M hit in 2016 and $2M hit in 2017?

I've never been able to figure it out completely and I just wanted to clarify.

Re: Dead Cap

By WarEagle
11/19/2015 5:05 pm
$3M cap hit in 2016 for both questions.

Re: Dead Cap

By jsid
11/19/2015 5:06 pm
WarEagle wrote:
$3M cap hit in 2016 for both questions.


How is it that I can begin a year with a cap hit for the next year then?

Re: Dead Cap

By WarEagle
11/19/2015 5:13 pm
jsid wrote:
WarEagle wrote:
$3M cap hit in 2016 for both questions.


How is it that I can begin a year with a cap hit for the next year then?


Hmm. I'm not sure. Now that I think about it, I may be wrong about the retired players.

JDB may need to answer this one.

Sorry

Re: Dead Cap

By Morbid
11/19/2015 8:18 pm
Retired players with cap left for upcoming seasons, the total of the bonus money owed for those seasons is applied to the next season, not over many seasons. I know this from experience. Its why you have to be careful when signing older players to huge long term contacts.

In your example I believe it would be 1 million cap hit for the season he retired then 2 million the following season.

Re: Dead Cap

By jdavidbakr - Site Admin
11/19/2015 8:25 pm
No matter how the player leaves your team (cut, trade, retire), his remaining bonus is spread as described above - in your example, the $1 million in the first year, and the remaining $2 million the second year. In no case will the cap hit extend into a third year.

Re: Dead Cap

By WarEagle
11/20/2015 7:12 am
I just wasn't sure what year is considered the first year for a retired player. If he retires after the 2015 season, I guess 2016 is considered the 1st year, and the remaining years' worth of bonuses are in 2017.

For some reason I was thinking if the player retired at the end of 2015, his entire remaining bonus would hit the cap in 2016, but I guess I was wrong.

Thanks for the clarification.