Kurtz
Registered User
From what I've read, that deferred money is included in the Cap, but at the present value, whereas he'll get it at future value.
Been almost 50 years since I did Present Value / Future Value in accounting Texas Instruments T1. So don't ask me for the calculations.
They have them online now, old sport
Present Value Calculator - NPV
Use this present value calculator to find today's net present value ( npv ) of a future lump sum payment discounted to reflect the time value of money.
www.financialmentor.com
Using a conservative discount rate of say 5%, a million dollars in 2035 is worth $600k today. So I would assume that the league would take that $600k and spread it over the active length of the contract. So if a player signs a 6 year contract with a $1m bonus in 2035, the bonus would add $100k to the cap hit for every year of the 6.
I could be wrong but I think that's how they'd do it.
ROR didn’t want to re-sign in Toronto.. why would he accept a trade back?
We never really found out why. Could be he didn't like Keefe, whereas he won his cup under Berube.