What is amortization?
What is amortization?
Once Dmac is drafted a Dmac Jersey will spontaneously materialize in the closet of each and every Dolfan...
...and not that replica crap either...
yes, please fill us in on amortization....
Amortization is how the signing bonus is applied to the salary cap. Another word for it would be proration. $6 million signing bonus is "spread out", "amortized", or "prorated" for X number of yrs. For contracts signed in 2007, signing bonuses can be "amortized" for 6 yrs. So, say Miami signs a FA and gives him a $6 million signing bonus. The player most likely gets all $6 million in his pocket this season, but for cap purposes, the $6 million is "amortized" over 6 yrs at $1 million/season ($6 million / 6 yrs).
Busy
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Originally Posted by DeDolfan
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Merman
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