Cap Out Offer
 

Can someone give me a quick heads up as to what this button does and why it is useful? I can clearly see it alters a contract offer, but I don't know what factors it uses to make those alterations.

Any input would be appreciated. I looked at the help file but couldn't see anything, or i'm blind :)

It reduces the CUR YEAR salary down to the minimum and takes that exact amount as the bonus of the offer. The remaining years have the same salary as the existing contract.

So you save money this year, but you're stuck with paying him more for every remaining year on the contract. And that increase is in bonus so once applied, it can't be moved.

It's always better to renegotiate with lower existing bonus, so if it's a player you plan to extend, the extra bonus is going to hurt. The more you save on the cap out, the worse it hurts later.

However, players will (usually/almost always?) accept capout offers. I'm not sure this is true any longer, but a player who gets capped out cannot hold out that year. So it can be a useful tool in preventing a player who is demanding way, way more than he's earning, from holding out. As a "desperation I need more cap this year" move, I'd say it's usually ill-advised. But balancing current vs future needs is always a push/pull.

That is a thoroughly excellent answer. Thanks!