SubtropicalPenguin wrote:Is the deal 9.5 each year, or is there any variation by year? I know the new CBA limits back diving deals, but not completely.
If it is 9.5 per year, I wonder why they didnt try to do something a bit front-loaded to keep the cap hit down. My understanding of the new CBA is you can have no more than 35% variation year by year, and the lowest year can be no less than 50% of the highest year. I wonder if the Malkin camp would have accepted something like this: 12 - 12 - 12 - 9.0 - 8.0 - 6.0 - 6.0 - 6.0.
That comes out to 8 years, 71 million, cap hit of 8.875 per year. The time value of 12 million over 9.5 million for the first 3 years, if invested relatively conservatively at just under 8% would give an extra 2 million for the first year salary bump, around 1.7 million for the second year salary bump and around 1.3 million for the third year salary bump over the term of the contract. These are rough estimates with yearly compounding interest rather than continuous or monthly compounding interest. It would probably require some tweaking to get the figures everone would be ok with, but a few hundred thousand saved against the cap could be helpful down the road. This set up would net the functional equivalent of almost exactly 76 million over 8 years once you factor in the time value of the increased salary for years 1 through 3 and it saves 625k against the cap hit.
Either way, I'm happy to have the big man in the Burgh for the foreseeable future.
Cap in hockey is different than football. In football it varies, in hockey the cap is the average of the total amount divided by the number of years.