Salary Cap Analysis

[Schneed10]

Originally Posted by JWsleep

Good stuff, Schneed.

About Lavar--isn't the cap hit for a release (not a trade) like $12 mil? I know this goes against going wisdom, but I really think we'll find a way to keep Lavar. He sure sounded like he wanted to be here when asked by Sonny and co in the locker room after the Seattle game. And Gibbs has talked a lot about keeping the team intact. Remember: Gibbs makes these decisions in the end, not Snyder or Cerrato. If it's a smaller hit anyway, my feeling is that Lavar convinced the D coaches of his attitude in the second half of the year. And remember how his teammates rallied to him. He's a leader on this team. Cutting him looks too much like old-style Danny-boy retribution, and not enough like Gibbs. We'll see!

Here's the story on Lavar:

He's going to count $12 million against the cap if he stays on the team next year and his contract is not modified.

How a player leaves your team, whether by getting cut or by getting traded, it does not change the cap situation. The date on which he leaves the team does change things.

If he is cut or traded before June 1, we will carry $12.8 million in Dead Money in 2006. Meaning his cap hit for 2006 would go up $0.8 million from it's current position. And he wouldn't even be on the team. So there's no way this would happen.

If he is cut or traded after June 1, we will carry about $5 million in Dead Money in 2006, saving us about $7 million from his current cap number of $12 million. The negative side of that is we'd carry $7 million in dead money in 2007.

It's very possible Lavar could stay and change his $6.5 million roster bonus into a signing bonus. This would save us about $5 million or so in 2006. But it will be interesting to see if GW wants him around, or if he elects to trade him and get something in return.

[Pocono]

As was said earlier there is no 6/1 benefit if there is no CBA extension and even if there is if a player is traded at any time all of the future SB proration accelerates into the current year. [subtract 7M of savings]

Also some of those roster bonuses are not roster bonuses but bogus incentives placed into the contracts to meet the 30% rule that applies to the last capped year. That rule says no increase in salary year to year can be greater than 30% of the player's salary[not including SB proration] of the final capped year. So those incentives stay and so do those roster bonuses unless there is a CBA extension before 6/1. [subtract 15M of savings]

The Skins have 109M of salary commitments for 06 AND 3.5M of dead money already counting against 06. [subtract 3.5M]

I think that 109M was based on about 46 players under contract at the time and you cut about 5 or 6 players so you'll need to add about 10 salaries. Gibbs loves his vets so you better figure about 400K per player so there goes another 4M of space.

I think it spells big trouble unless there is a CBA extension by 3/1 which I think will happen but you can never tell what greed will do.

Here is the 30% rule from the CBA.

(b) No NFL Player Contract entered into in a Capped Year and extending into the Final League Year or beyond may provide for an annual increase in Salary, excluding any amount attributable to a signing bonus as defined in Section 7(b)(iv) above, of more than 30% of the Salary provided for in the Final Capped Year, per year, either in the Final League Year or in any subsequent League Year covered by the Player Contract. For example, without limitation on any other applicable example, if neither party exercises any right to cancel the extension of this Agreement, a four-year Player Contract signed in the 2003 League Year (assuming it is a Capped Year) may not provide for annual increase of more than 30% of the 2003 League Year Salary, excluding amounts treated as a signing bonus, in each of the three additional League Years covered by the Contract.

*Extension Agreement 2/25/98

[Schneed10]

Originally Posted by Pocono

As was said earlier there is no 6/1 benefit if there is no CBA extension and even if there is if a player is traded at any time all of the future SB proration accelerates into the current year. [subtract 7M of savings]

The NFL's fiscal year switches over on June 1. If you cut him or trade him after June 1, the hit accelerates to 2007, not 2006.

Originally Posted by Pocono

Also some of those roster bonuses are not roster bonuses but bogus incentives placed into the contracts to meet the 30% rule that applies to the last capped year. That rule says no increase in salary year to year can be greater than 30% of the player's salary[not including SB proration] of the final capped year. So those incentives stay and so do those roster bonuses unless there is a CBA extension before 6/1. [subtract 15M of savings]

Crazy Canuck would have to confirm, but I don't think he includes incentives (likely or unlikely to be earned) in his cap figures. I remember when Ramsey triggered his incentives a year ago, Canuck's cap figures for Ramsey changed. So most of the $15.9 million of restructures remains possible. But you are right that if any incentives got triggered this year, that would still need to be considered. But even if incentives are included in cap figures, incentives come in the form of increased base salary or incentive bonuses, either of which can also be renegotiated.

Originally Posted by Pocono

The Skins have 109M of salary commitments for 06 AND 3.5M of dead money already counting against 06. [subtract 3.5M]

The $3.5 million in dead money (Barrow, Morton, McCants & other miscellaneous) is already included in the $109 million.

Originally Posted by Pocono

I think that 109M was based on about 46 players under contract at the time and you cut about 5 or 6 players so you'll need to add about 10 salaries. Gibbs loves his vets so you better figure about 400K per player so there goes another 4M of space.

This sounds about right. Part of the space we have to play with will be taken up by Ryan Clark, Robert Royal, Demetric Evans and others.

Originally Posted by Pocono

I think it spells big trouble unless there is a CBA extension by 3/1 which I think will happen but you can never tell what greed will do.

I'm in total disagreement here. All of the moves listed above are possible.

Originally Posted by Pocono

Here is the 30% rule from the CBA.

(b) No NFL Player Contract entered into in a Capped Year and extending into the Final League Year or beyond may provide for an annual increase in Salary, excluding any amount attributable to a signing bonus as defined in Section 7(b)(iv) above, of more than 30% of the Salary provided for in the Final Capped Year, per year, either in the Final League Year or in any subsequent League Year covered by the Player Contract. For example, without limitation on any other applicable example, if neither party exercises any right to cancel the extension of this Agreement, a four-year Player Contract signed in the 2003 League Year (assuming it is a Capped Year) may not provide for annual increase of more than 30% of the 2003 League Year Salary, excluding amounts treated as a signing bonus, in each of the three additional League Years covered by the Contract.

*Extension Agreement 2/25/98

The 30% rule does not apply to signing bonuses, which the Skins can circumvent by converting the scheduled roster and workout bonuses into signing bonuses. This will not be a limitation. Several players restructured in this very manner last year, like Reynaldo Wynn and Mark Brunell.

[Pocono]

I think we have to agree to work from the same CBA.

Page 102

(ii) Acceleration.

(1) For any player removed from the Team’s roster on or before June 1, any unamortized signing bonus amounts will be included in Team Salary for such League Year. If such acceleration puts a Team over the Salary Cap, the Team will have seven days to conform with the Salary Cap, but may not sign any players until there is Room to do so under the Salary Cap.

(2) For any player removed from the Team’s roster after June 1, any unamortized signing bonus amounts for future years will be included fully in Team Salary at the start of the next League Year.

* During any League Year immediately preceding an Uncapped Year, the provisions relating to acceleration of unamortized signing bonuses applicable on or before June 1 of that League Year shall apply during that League Year after June 1.

*Side Letter 11/1/95: Sec. 2

(3) In the event that a player who has had a signing bonus allocated over the years of his Player Contract is traded, or whose Contract is assigned to another team pursuant to the NFL’s waiver procedure, then such signing bonus shall be accelerated as in subsection (ii)(1) above and the assignee Team’s Team Salary will not include any portion of the signing bonus.


In the final capped year the league mandates a team must have the cap space to absorb any reached incentive. Samuels Wynn Rabach and Patten have fake incentives in their contracts that go away should a CBA extension be signed. The Eagles have about 6M of these also designed to comply with the 30% rule without actually giving the player more money.

The 109M figure does not include dead money.

I think you should read that 30% rule a few more times. All these special rules for the final capped year are designed to prevent teams from moving cap hits from the last capped year into presently uncapped years. Most of the moves teams make to get under the cap in other years are a no go in the final capped year except for simply cutting a player and even that is made harder because you can't do it after 6/1 and move the cap hit into the following year.

[dgack]

I just wanted to thank Pocono and Schneed for dispelling the lurid fantasy that working as an NFL agent or in the front office at Redskins Park would be an awesome job.

I might as well have been reading over real estate tax law. :vomit:

[Schneed10]

Originally Posted by Pocono

I think we have to agree to work from the same CBA.

Page 102

(ii) Acceleration.

(1) For any player removed from the Team’s roster on or before June 1, any unamortized signing bonus amounts will be included in Team Salary for such League Year. If such acceleration puts a Team over the Salary Cap, the Team will have seven days to conform with the Salary Cap, but may not sign any players until there is Room to do so under the Salary Cap.

(2) For any player removed from the Team’s roster after June 1, any unamortized signing bonus amounts for future years will be included fully in Team Salary at the start of the next League Year.

* During any League Year immediately preceding an Uncapped Year, the provisions relating to acceleration of unamortized signing bonuses applicable on or before June 1 of that League Year shall apply during that League Year after June 1.

*Side Letter 11/1/95: Sec. 2

(3) In the event that a player who has had a signing bonus allocated over the years of his Player Contract is traded, or whose Contract is assigned to another team pursuant to the NFL’s waiver procedure, then such signing bonus shall be accelerated as in subsection (ii)(1) above and the assignee Team’s Team Salary will not include any portion of the signing bonus.


In the final capped year the league mandates a team must have the cap space to absorb any reached incentive. Samuels Wynn Rabach and Patten have fake incentives in their contracts that go away should a CBA extension be signed. The Eagles have about 6M of these also designed to comply with the 30% rule without actually giving the player more money.

The 109M figure does not include dead money.

I think you should read that 30% rule a few more times. All these special rules for the final capped year are designed to prevent teams from moving cap hits from the last capped year into presently uncapped years. Most of the moves teams make to get under the cap in other years are a no go in the final capped year except for simply cutting a player and even that is made harder because you can't do it after 6/1 and move the cap hit into the following year.

Well aren't you working from the assumption that the CBA will not be extended and that we will enter into this season as the so-called final uncapped year? I personally feel like the NFL will come to an agreement on the extension of the CBA. If you feel otherwise, then yes, you are right. But I'm operating under the assumption the CBA will be extended, in which case this will not be considered "the last year before an uncapped year."

The NFL still has some work to do on the CBA for sure. But I don't buy into these doomsday scenarios indicating that a CBA extension won't happen. These kind of negotiations tend to go into the 11th hour, when progress is usually made quite rapidly.