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Old 02-28-2016, 07:58 PM   #4
snellman
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Re: Salary, Bonuses, and Salary Cap Hit Problem

You have to add the salary and the signing bonus together to get your cap hit. Example, I make you an offer of a 5 year contract of $5 mill with a $5 mil signing bonus. You would get $5 mil upfront, and 1 mil per year but your cap hit would be 2 mil each year because of the 10 mil total. If I cut or trade you after the first year, I would have a cap penalty of 4 mil the next year which is the remainder of your signing bonus.

They break it down a little more that that so your total cap number increases each year as your salary increases, but that is the simple version.

ETA: signing bonus is part of the cap hit number, but that is the money that the player is payed up front in a single payment.

Last edited by snellman; 02-28-2016 at 08:01 PM.
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