From post in another thread
My numbers for Fielder:
salary: $3.7 million
amortization: $1.24 million
cap hit: $4.94 million
still have $2 million option for 2006.
If paid:
salary: $3.7 million
previous amortization: $1.24 million
new amortization: $666,666
cap hit: $5,606,000 (increase by the amortization amount)
Not paid and remains with team in 2004(without restructure)
salary: $3.7 million
previous amortization: $1.24 million
portion of 2006 amortization: $620,000
cap hit: $5.56 million
If plain out released: "dead cap" of $3.72 million ($1.24 million x 3 yrs). Original cap hit of $4.94 million. $4.94-$3.72=$1.22 million savings in 2004.
For argument sake: If $2 million option counted in full NOW
salary: $3.7 million
previous amortization: $1.24 million
Option bonus: $2 million
Cap hit: $6.94 million
If then paid per above:
If paid:
salary: $3.7 million
previous amortization: $1.24 million
new amortization: $666,666
cap hit: $5,606,666 (increase by the amortization amount)
represents a savings of $1.333 million.
However, it's really a moot argument. If it counts, you add $2 million to the cap now but save $1.333 million when exercised OR add $666,666 to the cap if it doesn't count and exercised........either way.......YOU END UP EXACTLY THE SAME
