OMG67
Registered User
- Sep 1, 2013
- 11,371
- 7,365
What? Why would the % of the cap stay the same as the cap goes up and the salary stays the same?
I don’t understand what you don’t understand.
1> Agents determine what the average cap will be during the duration of the contract
2> They demand a percentage of that cap value
3> Once the contract is signed, the contract as a percentage of the cap is at its highest. As the contract progresses through is years and the cap goes up, the contract value as a percentage of the cap goes down
You cannot look at McDavid’s contract now (15.2%) and apply that to what Matthews would sign for. It is irrelevant. McDavid’s agent would have estimated the average value of the cap for the duration of the contract and placed the AAV percentage on That.
So, for Matthews, he will likely look at a 4-5 year contract. There will be a significant cap bump by the first year of his new contract and then incremental bumps after that. So, hypothetically speaking the cap value would be:
2024-25 - 88.5mil
2025-26 - 89.5mil
2026-27 - 90.5mil
2027-28 - 91.5mil
2028-29 - 92.5mil
AVERAGE: 90.5mil
If Matthews agent and the Lears agree to 15% of the average cap value for the duration of the contract, it would equal $13.575mil AAV. HOWEVER, if he signs the contract this fall (a year in advance of the contract start) and you were to apply it to next year’s cap value ($83.5mil), then it would be 16.3% of the cap. Int he last year of his contract, it would be 14.7%.
The Matthews contract will be very easy to negotiate assuming the same process they used last time (and McDavid) will apply. The Leafs agreed to a shorter term last time so they will do the same again this time. Then it is more a matter of No Movement clauses etc and when they kick in.
So, unless MAtthews agent is asking for MAX (20% - which would need to be applied to the current cap, not the projected average), and is realistic with respect to what that percentage should be, there shouldn’t be any issues with the contract.