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Reminder from 'The Professor'


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(Via Twitter)

@ClaytonESPN John Clayton reminding everyone that the minimum spend of 89 percent doesn't start until 2013.

I assumed teams had to spend at least 90% of cap beginning this year. So the Bills don't have to spend the money any time soon.

So the gnashing of teeth about the quest to spend "up to the floor" is nothing but a mirage of palm trees floating in the desert heat according to Clayton? Way to rip the heart out, man. B-)

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Cash spending, not cap spending, and it's the entire league, not each team. So the Bills could spend under a large percentage because other teams will spend over and amortize bonuses for cap purposes.

 

The cap spending is only 89%, basically what it's been the past few seasons.

Edited by Ghost of Rob Johnson
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Cash spending, not cap spending, and it's the entire league, not each team. So the Bills could spend under a large percentage because other teams will spend over and amortize bonuses for cap purposes.

 

The cap spending is only 89%, basically what it's been the past few seasons.

I fail to see how a lot of teams are going to spend over the salary cap in cash. Most players on all teams have already had most of their big bonuses paid out. It's only the first year bonus money and first year salary that counts as "cash to the cap" of which the entire league has to spend 99%. Gazoo is technically right that there is no floor until 2013, but not practically right, IMO, since it will be very hard for teams to spend much under it and the league to still spend 99% in total.

 

The real kicker is that the league doesn't have to hit that 99% until the end of the season, not the beginning. So teams like the Bills who haven't spent enough will just re-sign guys like Stevie Johnson or Fitz or Kyle Williams to extensions near the end of the year to get their cash expenditures up to around 99% of the 120 mil or so cap. The Bills have to spend some money, and they will spend up to around 120 mil this year. It's just a matter of which guys they spend it on and how they pay out (in what years) the big numbers.

Edited by Kelly the Fair and Balanced Dog
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He doesn't say per team.

Yes he does. And if you had been following this and know anything about it, you would have known that. He's always been talking about per team. Twitter accounts only allow 140 characters. ;)

 

2. Cap stands at $120.375 million: The salary cap is $120.375 million, but each team has the option of using a $3 million exemption this year on a signed player to free up some room. Next year, teams will have the option of designating three player exemptions at $1.5 million each. These are used to transition into a salary cap that decreased from $128 million in 2009. There is also a mandatory cash minimum payroll for each team at 89 percent of the cap, which translates into $107.1 million per team.

 

http://espn.go.com/nfl/story/_/id/6790759/what-new-nfl-cba-means-football-terms

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I fail to see how a lot of teams are going to spend over the salary cap in cash. Most players on all teams have already had most of their big bonuses paid out. It's only the first year bonus money and first year salary that counts as "cash to the cap" of which the entire league has to spend 99%. Gazoo is technically right that there is no floor until 2013, but not practically right, IMO, since it will be very hard for teams to spend much under it and the league to still spend 99% in total.

I don't know exactly how the numbers work out, but I think you may need to factor in the idea that under the new 2011 CBA, players with only four years of accrued service become unrestricted free agents when their contracts expire. Under the old 2006 CBA, there were special rules for the post opt-out, uncapped 2010 year that required a player to have 6 years of accrued service to become an unrestricted free agent when his contract expired.

 

Not absolutely sure, but I think that impacted player rights as follows:

 

If a rookie signed a four year contract in say the summer of 2006. and played under it for the 2006, 2007, 2008 and 2009 seasons, I think he didn't hit the open market as an unrestricted free agent when the 2009 season ended. So even if the guy was an elite performer, there was no open market for his 2010 services. Maybe he signs a long term, multi-year extension with his then current team for the 2010 season and beyond without other offers to drive up his price (the NFLPA filed a suit, which will be dropped if the 2011 CBA is ratified by the reconstituted NFLPA by 8/4/11, alleging that teams colluded to keep the price down for restricted free agents' services), or maybe he prefers a short-term one-year deal for the 2010 season that now allows him to be an unrestricted free agent for the 2011 season.

 

Point is, although I don't know exactly how many, there probably are at least a few extra guys that hit the unrestricted free agent market this week, as compared to the average NFL year. Any signing bonuses paid in 2011 to such "extra" free agents will count, in their entirety, against the "league wide" requirement that teams collectively spend total cash of at least 99% of [$120,375,000 x 32] on player salaries and bonuses for the 2011 season.

 

As far as I know, there is no requirement that the Bills, or any other individual team, must spend any amount at all for the 2011 season - - the only "floor" requirement for 2011 appears to be that the combined total of all league-wide cash spent on player salaries and bonuses must be at least 99% of [$120,375,000 x 32] in 2011.

 

($120,375,000) x (0.99) = $119,171,250

 

So for every dollar of actual cash above $119,171,250 that any team spends on player salaries and bonuses in 2011, some other team can spend a dollar less.

 

It also appears that each team, at its option, can spend $3 million ABOVE the $120,375,000 cap in 2011, so long as they spend that money in certain ways on veteran players with at least five years of accrued service. So if any team chooses to spend that extra $3 million in 2011, some other team could spend $3 million less than $119,171,250 in actual player cash for the 2011 season.

 

The new 2011 CBA also includes some sort of 1.5% credit for actual stadium spending by any team, but I haven't found any explanatory details so I'm not sure how that works.

 

The above analysis is based on information from the link below, which purports to be the text of a July 25, 2011 power point presentation made by the NFLPA to player agents. It summarizes the main deal points of the new 2011 CBA - - I've included a short excerpt.

 

http://bizoffootball.com/index.php?view=article&catid=54%3Anfl-labor-news&id=857%3Atext-of-brief-of-new-nfl-cba-to-player-agents&format=pdf&option=com_content&Itemid=79

 

Minimum Cash Spend Requirements

•Guaranteed League-Wide Cash Spend of 99% of the Salary Cap in 2011-12

•Guaranteed League-Wide Cash Spend of 95% of salary cap in 2013-16 and 2017-20 four year

periods

•Minimum Team Cash Spend - 89% of salary cap in 2013-16 and 2017-20 on a four-year

average

2011 Cap - Transition

•Salary Cap set at $120.375M with $22.025M in benefits for 2011

•$3M in additional cap room per Club in 2011(at club option) by taking up to $1M off the cap

charge for up to three players per Club with 5 or more Accrued Seasons (same rule for 2012,

but for a total of $1.5M in extra room created from three players with a $500k in salary)

Edited by ICanSleepWhenI'mDead
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