This is how I understand it. So correct me if I'm wrong.
Coaches and players contracts are handled differently in RL.
Coaches don't have a salary cap. Players do.
The money you have for coaches isn't cap money. It's how much your organization has in it's wallet to spend. Can't spend what you don't have sort of speak.
Coaches contracts are guaranteed(promised).
With players, only their bonus money is guaranteed(promised).
With released players you lose your cap space for the amount of bonus owed. And since the base pay is not guaranteed it is wiped away and cap space is cleared. With coaches there is no bonus money or base money. It's just money. Nothing to clear.
So with coaches your never clearing off cap space like you do with players. Your just paying him the money you promised him to go away. What ever you have left in your wallet is what you have to spend on your next promise.
If I have something wrong or missed anything please chime in.
I dont want to mislead anyone.
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For me, I think the biggest problem I have with coach hiring is the timing of it all.
Just to kick around:
FA Stages 1 thru 4:
Only for hiring Head Coaches.
After that you may only hire unemployed HC's.
Stages 5 thru Draft Day 3:
Only for hiring Coordinators.
After that you may only hire unemployed Coordinators
Stages Draft Day 4 and beyond:
Now that all the poaching is done we can bid on the Position Coaches and other unfilled spots from the unemployed line.