[nuwildcat]

So I have the a player with the following contract remaining:

$12,750,000
$10,500,000
$11,000,000 Team Option ($7,000,000 Buyout)

It is the very beginning of the season, so when I try to release the player it tells me that approximately $30,000,000 will be applied over the life of the contract (3 years). This seems correct as the two years of guaranteed salary and team option add up to $30,250,000.

Now my questions:
1. How are the costs allocated over the three years? Is it allocated as the salary would be?

2. When I release the player, my money available for free agents doesn't change, but my money available for extensions declines by $10,500,000. If the money is allocated each year as if he was still on the roster, why would the amount for extensions decline. If the budget if I kept him on the roster is $75,000,000, then releasing him should not cause the money for extensions to decline below that number when you release him unless it is taking the team option money next year. Even if this was the case, shouldn't only decline by the team option amount, (in the case $7,000,000)?