[Diplomat]

Because the yearly salaries are not guaranteed. Shawn no longer gets paid the big money now that he has been cut. Seattle, and Shawn himself, probably knew at the time that the odds were heavily against him being physically able to play out that contract. Hence the importance of the signing bonus and the guaranteed initial payment(s).

[misterrob]

Yeah but there has to be a cap hit for this year since these contracts do have bonus money that gets spread out. If you cut the guy then I believe that you eat all of his remaining unallocated bonus coin.