Posted by bwb53 on 4/11/2011 10:35:00 AM (view original):
You can do the same if you negotiate a 4.8 m reduction in payroll,You haven't shown the advantage of one over the other. Demonstrate in the cash and contract trades listed above.They start out exactly thesame. What can on do post trade, that the other can't do post trade?
With an $86m payroll budget, you can acquire and pay up to $86m worth of player salary. With an $81m payroll budget, you can only acquire and pay up to $81m worth of player salary.
I cannot explain it more simply than that. 86 > 81.
You are focusing on cap space, which is the difference between player payroll budgeted and player payroll spent. In both of your examples, the "net" result is exactly the same. But you end up with a higher payroll budget in one example than you do in the other. Combined with the other 8 budget categories, you now have $190m worth of assets (taking each player contract at face value) as opposed to 30 other owners who have $185m and the other guy who only has $180m.