At the end of the year, I don’t want you any more so I plan on cutting you. You’re still owed $500k over two years, or $1m.

For cash, I still owe you $500k per year, for 2 years even though you’re not with me any more.

For the cap, I’m in a worse position. I’ve amortized your bonus over your contract to lessen the sting. So that’s $1m per year I have less to work with. 

So your dead cap per year with a fully guaranteed contract in yr 2 and 3 is $1.5m per season.