Yup that's exactly what i said - just not as succinctly as you!
I'm not sure it's as complicated as that. I think there's just first tier (25 players) and second tier (5?) players.
Having a first tier contracted player leave wouldn't elevate a second tier player to a first tier contract.
In other words you don't have to have 25 first tier contracts.
The cap is for the top 25 earners at the club - I think
Play The Ball is right in that if #25 leaves, #26 gets elevated.
From nrl.com
"$5.5 million - Basic payments for the Top 25 players including Sponsor Servicing Allowance ($5.3m) which is automatically given to all clubs to compensate players for club sponsorship activities including appearances and endorsements."
"Payments for players outside Top 25
$440,000 - Cap for all players outside of the top 25 who compete in the Telstra Premiership."
The problem a lot of clubs have is with the second tier cap. Because if you have 35 players on your books - that's 10 players you have to spread that $440k amongst them.
And when you have an injury toll like the warriors have had this year... how many players have played first grade? 31. Plus Laumape and Palavi who didn't play a game. And I don't know how many of the NSW Cup side get payments who didn't play either (e.g. Bhana).
So that $440k will need to be split at least 8 ways this season...
Also included in the salary cap are payments to ex players (if we're still paying them) like Mateo and Nielsen. I have heard we're definitely still paying Mateo. No idea re: Nielsen (but he was initially contracted for 2015, and I doubt the dragons picked him up at the amount the warriors signed him for).