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1.) Cap number - It has been reported to be in the 92 to 95 million
range. With an extension the cap number is likely to be over $100
million.
2.) Amortization. Amortized bonuses can only be prorated over four years. In 2005 they were allowed to be prorated over 5 years. If the CBA were extended, they would be prorated over the life of the contract or 7 years, whichever is the shorter time period.
3.)Limited salary increases. The 30% rule will take effect. Future increases in a player's salary is limited to 30 percent of a player's base salary in 2006 plus his LTBE incentives. Example - A player whose 2006 base salary was 1,000,000, the maximum increase from year to year for the rest of his contraact could be no more than 300,000(30% of 1 million). Paraphrasing eaglescap - "for the purposes of the 30% rule salary is defined as base salary, plus
roster bonus, plus LTBE incentive. Signing bonuses do not count in
calculation for the 30% rule, but prorations from option bonuses do.
4.) June 1 has no significance - Clubs are usually able to cut players from their roster after June 1 to defer some of the dead-money hit to the following league year. With no salary cap in 2007, whenever a club releases a player in 2006 all of his unamortized signing bonus proration will hit the 2006 cap
5.) LTBE/NTLBE incentives - NLTBE incentives won't count against the 2006 cap until they're earned. LTBE incentives will count against the cap until they cannot be earned. Adamjt13 provides this example - "So, for example, if a team has $500,000 of cap room late in the season and a player is approaching an NLTBE incentive that would earn him $1 million, the team has to open up another $500,000 of cap room when he earns it. On the other hand, if a player has an LTBE incentive, that money becomes available under the cap as soon as it can't be earned (for example, if a player is put on IR before reaching the necessary statistics to earn the incentive).
6.) Free agency - At the end of the 2006 League players will need 6, not 4 accrued seasons, in order to become an UFA
Edited to number the factors and to add the free agency factor.
range. With an extension the cap number is likely to be over $100
million.
2.) Amortization. Amortized bonuses can only be prorated over four years. In 2005 they were allowed to be prorated over 5 years. If the CBA were extended, they would be prorated over the life of the contract or 7 years, whichever is the shorter time period.
3.)Limited salary increases. The 30% rule will take effect. Future increases in a player's salary is limited to 30 percent of a player's base salary in 2006 plus his LTBE incentives. Example - A player whose 2006 base salary was 1,000,000, the maximum increase from year to year for the rest of his contraact could be no more than 300,000(30% of 1 million). Paraphrasing eaglescap - "for the purposes of the 30% rule salary is defined as base salary, plus
roster bonus, plus LTBE incentive. Signing bonuses do not count in
calculation for the 30% rule, but prorations from option bonuses do.
4.) June 1 has no significance - Clubs are usually able to cut players from their roster after June 1 to defer some of the dead-money hit to the following league year. With no salary cap in 2007, whenever a club releases a player in 2006 all of his unamortized signing bonus proration will hit the 2006 cap
5.) LTBE/NTLBE incentives - NLTBE incentives won't count against the 2006 cap until they're earned. LTBE incentives will count against the cap until they cannot be earned. Adamjt13 provides this example - "So, for example, if a team has $500,000 of cap room late in the season and a player is approaching an NLTBE incentive that would earn him $1 million, the team has to open up another $500,000 of cap room when he earns it. On the other hand, if a player has an LTBE incentive, that money becomes available under the cap as soon as it can't be earned (for example, if a player is put on IR before reaching the necessary statistics to earn the incentive).
6.) Free agency - At the end of the 2006 League players will need 6, not 4 accrued seasons, in order to become an UFA
Edited to number the factors and to add the free agency factor.
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