How are descending contracts computed?

[Skybox]

ORL loves to offer contracts that start high and descend in annual salary. With rookie extensions looming over the next couple of summers, this is a really good time (and maybe last chance for a while) to do something significant in the FA market.

What are the limitations on a descending contract. For example, if ORL or whoever has unlimited cap space and they want to offer a FA a 4 yr deal, averaging $25m per...are there limitations as to what the first year salary or the rate of declining salary?

[giberish]

The 1st year salary limitations are the same as with flat or increasing contracts (so with the same cap space/exception/max salary you can offer more money with increasing contracts).

The rate of decrease is limited to the same rate of increase limitation - set as a % of the 1st year.

[jayjaysee]

4yr100 mil is like 27.1 first year for a feee agent without bird rights. Only drops to 23~ million with the 5% drops (5% based off the first year subtracted each of the years, not a year by year 5%)

But it’s still the best option for teams in most cases.