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Vegeta

My Gross Explanation of the LTIR Bonus

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after the  david clarkson trade I was left wondering why would a  cap strapped team would acquire a ltir players. After some  diggin I think I got it down

So the  Capceiling is 81.5m
   ltir bonus is  additive to  the Hard cap not  deductive to your own cap, meaning  a team that is not spending to the cap gets 0  releif from placing a guy on ltir, but a  Team that sits at the cap  lets say  right on it  at 81.5m and  a 10m player gets hurt they  now have a 91.5m Hard cap ( until player  is activated). what it changes  is this. 
exemple 1)

say toronto had  2m in space  with  marner unsigned  and they wanted to sign him.  they would have to put   horton right away on ltir so   you take  horton  cap hit of 5.3m you substract the  2m in  space they already had  and you end up with a real 3.3m in space or if you prefer you can now spend  up to  81.5 +3.3 = 84.8m

exemple 2)
say toronto had  exactly 5.25 in cap space before  the clarkson trade ( lets ignore sparks)  Now  they sit  at right on the 81.5m limit they can now put them both on LTIR  and spend up to 81.5+10.55 = 92.05m

 

 so the big picture here is  you only get bonus cap space  of the actual amount your over the cap reguardless of the player cap hit. in theorie  a team that is not  against the cap  say ottawa, and their full roster  goes on ltir   at the same time you actually  get no bonus 

Edited by Vegeta
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I felt tsn and sportsnet knew WHY did they the trade but didnt know HOW it actually worked . At least they were super vague about it hopefully i got it right.

The capwise  implication is now you understand why some team dont put player on ltir ( screweing up our ir flag situation.  They either  dont need the space or are banking on adding up to their team and will wait to get max value out of ltir bonus

Edited by Vegeta

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Ithink the"easy" explanation is:

(player cap hit going onto ltir  ) - (your room under the cap) = ltir bonus over the cap

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