How to trades and releases cause "cap hits" in the NFL?

Question

I'm not very up to speed on the financial aspects of the NFL.

What little I know I've learned from Madden, so I don't even trust what I think I know.

Anyway, if somebody can help explain some of this to me, or hook me up with an informative link, that would be great.

Thanks

Answer 1

Bonuses that are included in players' contracts are prorated across the length of their contracts (even when they recieve the money upfront). That's why you see the long, back loaded contracts and why players rarely finish their actual contract without being cut or restructuring. However, when they are traded or released, all their bonus money immediatly counts against the cap.

Answer 2

There is a certain amount of money a team can spend on it's roster.  It's the same for every team.  The stars get the most and the backups get the least.  Some of that money is guaranteed to a player.  If a team releases a player they still have to pay him certain amounts depending on his contract.  Therefore, they have less money to spend on other players and they lost a player.  Say the salary cap is 56 million.  A team cuts a player but still has to pay him 2 million.  That team not only lost a player but now only has 54 million to work with .  Usually in trades the other team picks up what is owed to him but not always.