Quoting: EnvironmentalTwister
If clarkson and Horton contracts were gone the leafs would be under the cap LTIR contracts have no impact on cap room.
Yup. /thread[/quote]
Example #2. The Leafs currently have $4,591,467 in cap room next year having spent 76.908M (true statement). They have 16 under contract (true statement). They sign 6 players at league minimum 750k (which is 4.5M total). Now they have 22 players under contract at 81.409M and 91.467k left in cap space. However the offseason rules allow the team to exceed the cap by 10%. That means 81.5+ (81.5*10%)= 89.65M to spend. The Leafs use this offseason cap to acquire Zetterberg's contract (6.083M) bringing their total cap dollars to 87.492M and having 23 players on the roster. The Leafs put Z on LTIR and now gain 5.992M =(87.492-81.5M) to spend on that 23rd player replacement....thereby allowing them to go over the salary cap by 5.992M.
Could the Leafs spend 5.992M on that 23rd player with only 91.467k left in salary cap without Z's LTIR contract. NO, they would be over the regular season cap. Acquiring the LTIR contract allowed the Leafs to spend 5.992M more than other teams without the LTIR contract.
Therefore the LTIR contract is an asset that will cost the Leafs something. Just like Frank Seravalli and I believe.
Use numbers prove me wrong in the above example of how the Leafs gain 5.992M in free cap space (performance bonus overages aside--which don't hit until next year's cap when you can again find more LTIR contracts).
LTIR is free cap space when correctly applied. That's why the Leafs are doing it--and they aren't the only ones. The downside is tagging issues and performance bonuses can make re-signing players a problem. Just because a quote got put out of order to the answer doesn't make you right.
Numbers....prove my example wrong that adding Z's contract during the offseason 10% wiggle room period when the team is near the cap doesn't allow for a 5.992M player to be added when they would only have a few thousand in cap space left without that LTIR contract.
There is a reason only you are arguing after a concrete example went up...everyone else read and saw their error. And you welcome to reply, but that doesn't change the numbers.