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Salary Cap Questions


Virgil

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Contracts can be structured in different ways.  A 5 year 50m contract could be paid out at 10m every year or can switch it up.  One year could be 5m against the cap while another would have to be 15m to even it out for example.  Im not a fan of kicking contracts down the road, but this year the cap will be unusually low, but it will balloon up like crazy once this covid sh!t is over.  Could potentially sign players giving them low $ the 1st year, but then pay them higher in later years knowing the cap will be much higher.

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For a really good team they have a lot of fat.  Murphy, Kroft, Norman, and Ty Nsekhe are easy outs to clear some cap.  Star should be gone or restructured.  Morse gone or restructured. Addison and Butler Gone.  Might even jettison Micah Hyde if I can find someone who can cover a tight end. Sign Feliciano and move him to center if Morse is gone.  Otherwise keep him at guard.  Darryl Williams worthwhile.  Draft a guard or center, and a linebacker.

 

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9 hours ago, Chris farley said:

Sucks to be a free agent this year.  No one has cap room.  Lots of good players/vets will be on the market 

Not only will they be on the market but bargains will be everywhere. Not a fan of these "kick the can down the road" contracts. Too much risk if the player flames out.

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16 hours ago, Chris farley said:

Sucks to be a free agent this year.  No one has cap room.  Lots of good players/vets will be on the market 

 

This could mean a crummy BMW rather then a Porsche

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14 hours ago, TN Bills Fan said:

  Murphy, Kroft, Norman, and Ty Nsekhe are easy outs to clear some cap. 

These players are UFAs and do not count towards 2021 top 51 salaries for the new cap year - so no savings if they are gone 

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17 hours ago, ScottLaw said:

Well not yet.... after Addison, Jefferson and perhaps Butler or Brown or Morse are cut they will.

That still may not be enough because you have to factor in DEAD cap figures.

 

(-$6,312,851)  so while you might save $27 dropping it back to $19Mil. there will be the dead cap figure of $10Mil,

 

You still have to factor in Rookie deals ..  Make that another $8 to 10Mil, and reserve $ for futures due to injury.  

 

They might leave $5 to $10 Mil for FA.  

 

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  • 2 weeks later...

NFL wants to finalize new TV deals before setting 2021 salary cap in March

 

 

The NFL is currently calculating losses for the year, with its clubs submitting financial information for the 2020 season, according to one of the people.

 

The NFLPA will then review revenue reports as the two sides negotiate a new salary cap for the 2021 season. The NFL could suffer a $4 billion loss among its clubs due to Covid-19 preventing full stadiums.

 

https://www.cnbc.com/2021/02/10/nfl-wants-to-finalize-new-tv-deals-before-setting-2021-salary-cap-in-march.html

Edited by ALF
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On 1/31/2021 at 9:53 AM, 17islongenough said:

Its really hard to answer these questions. You have to know how long these contracts are for.  Bonus money gets spread out evenly over the contract length(cap wise).  

 

For Allen it depends on how they set it up.   Like Tres contact isn't effective until next year. I could be wrong on Tre though.  

Allen can only sign an extension so there is little to no impact in 2021.

As for Brown a typical restructure means they add a year and covert his salary for 2021 to a bonus. Then the cap hit is his bonus divided by the years on the contract.  

On 1/31/2021 at 10:38 AM, Roy Hobbs said:

If Josh were to sign a long-term deal this year, I would assume that 1/5 of the new signing bonus would be added to the 3.3 mil already on the books for his rookie signing bonus for 2021 and the rest of the contract would be applied starting with the 2022 season. 

No. By rule he can’t sign a new contract  to replace his rookie deal he can only sign an extension. He plays on his rookie first round deal in 2021.

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4 minutes ago, Ethan in Portland said:

Allen can only sign an extension so there is little to no impact in 2021.

As for Brown a typical restructure means they add a year and covert his salary for 2021 to a bonus. Then the cap hit is his bonus divided by the years on the contract.  

 

Again, keep in mind that AFAIK the contract must adhere to the league minimum salary based on years in the league.

I don't believe the player can convert all his salary to bonus.  So for Brown, his minimum salary needs to remain $1M+

31 minutes ago, ALF said:

NFL wants to finalize new TV deals before setting 2021 salary cap in March

 

 

The NFL is currently calculating losses for the year, with its clubs submitting financial information for the 2020 season, according to one of the people.

 

The NFLPA will then review revenue reports as the two sides negotiate a new salary cap for the 2021 season. The NFL could suffer a $4 billion loss among its clubs due to Covid-19 preventing full stadiums.

 

https://www.cnbc.com/2021/02/10/nfl-wants-to-finalize-new-tv-deals-before-setting-2021-salary-cap-in-march.html

 

If the hold-up is Thursday night football, I have a suggestion for the league:  Get Rid of It

 

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I seeing possibly $40M on the table depending on what Beane does with Morse, Addison, Hughes, Butler, Jefferson and Brown.... plus restructure a few others like Poyer and Klein for another year..... Lee Smith is probably out.

 

May restructure Hughes for another year... the rest I think wouldn’t be missed much. 
 

Beane will be busy, but for the folks that say we don’t have cap space.... not yet. But it’s there.

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4 hours ago, Hapless Bills Fan said:

 

Again, keep in mind that AFAIK the contract must adhere to the league minimum salary based on years in the league.

I don't believe the player can convert all his salary to bonus.  So for Brown, his minimum salary needs to remain $1M+

 

If the hold-up is Thursday night football, I have a suggestion for the league:  Get Rid of It

 

I believe there is a rule that there is a reduced cap hit for vets on minimum contracts no?

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37 minutes ago, FireChans said:

I believe there is a rule that there is a reduced cap hit for vets on minimum contracts no?

 

I think you're talking about a "qualifying contract", but that wouldn't, to my understanding, apply to Brown if he is willing to re-negotiate his contract as people have proposed. 

 

Here's an explanation from OvertheCap:

Quote

Veteran players can also sign what are called “Qualifying Contracts” in which they are paid in cash at the minimum level but their cap charge is only that of a player with two years of experience. This type of contract was created to allow veterans who make more money than younger players to have a chance to remain in the NFL by keeping the cap dollars at the same level. The contract must be no longer than 1 season, contain the minimum salary, a guarantee not to exceed the minimum salary of a player with 2 years experience, and additional bonus money not to exceed $65,000, a number that rises by $15,000 every 3 years with the next raise coming in 2015, in order to qualify. If the player received more than $65,000 from another team that season in offseason bonus money you can not sign than player to a qualifying contract.

 

This is what you're talking about, right?   The point is to help lower-tier veterans compete with younger guys for a roster spot by relieving the extra cap hit they cause.

 

Let's take OL Jordan Devey as an example.    He's been in the league 7 years but has (I believe) 5 credited seasons where he was on an NFL roster for >3 games. 

Minimum salary for him would have been $910k as of 2020, vs a 2 year vet with $750k minimum.  The Bills signed him to a 1 yr contract for $990k (which may be the new minimum) with $50k of bonuses, but he only counts $860k against the cap (which may reflect $810 as the new league minimum for 2 yrs)

 

Brown is currently scheduled to receive a $500,000 roster bonus, $100,000 workout bonus, and a $500,000 per-game roster bonus in addition to his $7.05M salary and the cap hit from his $1.6M pro-rated bonus.  What people have suggested is that his salary be converted to bonuses and his contract extended.

 

So the idea is we'd take the $8.15M of new money he's due, subtract out the league vet minimum for a 7 year vet of ~$1.15M, extend his contract to a 2 year deal, (or possibly just add a void year, I'm fuzzy on how those work) convert the rest to signing bonus and amortize it.  So he'd get $7M up-front amortized to $3.5M/yr for 2 years, and the Bills cap hit on Brown would go from $9.5M to $6.25M this season - or something like that.

 

Anyway, it wouldn't be a "qualifying contract" because of the much-too-big bonuses.

 

There are some aspects of this I'm fuzzy on, so welcome correction from better informed people.

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4 hours ago, Hapless Bills Fan said:

 

I think you're talking about a "qualifying contract", but that wouldn't, to my understanding, apply to Brown if he is willing to re-negotiate his contract as people have proposed. 

 

Here's an explanation from yo:

 

This is what you're talking about, right?   The point is to help lower-tier veterans compete with younger guys for a roster spot by relieving the extra cap hit they cause.

 

Let's take OL Jordan Devey as an example.    He's been in the league 7 years but has (I believe) 5 credited seasons where he was on an NFL roster for >3 games. 

Minimum salary for him would have been $910k as of 2020, vs a 2 year vet with $750k minimum.  The Bills signed him to a 1 yr contract for $990k (which may be the new minimum) with $50k of bonuses, but he only counts $860k against the cap (which may reflect $810 as the new league minimum for 2 yrs)

 

Brown is currently scheduled to receive a $500,000 roster bonus, $100,000 workout bonus, and a $500,000 per-game roster bonus in addition to his $7.05M salary and the cap hit from his $1.6M pro-rated bonus.  What people have suggested is that his salary be converted to bonuses and his contract extended.

 

So the idea is we'd take the $8.15M of new money he's due, subtract out the league vet minimum for a 7 year vet of ~$1.15M, extend his contract to a 2 year deal, (or possibly just add a void year, I'm fuzzy on how those work) convert the rest to signing bonus and amortize it.  So he'd get $7M up-front amortized to $3.5M/yr for 2 years, and the Bills cap hit on Brown would go from $9.5M to $6.25M this season - or something like that.

 

Anyway, it wouldn't be a "qualifying contract" because of the much-too-big bonuses.

 

There are some aspects of this I'm fuzzy on, so welcome correction from better informed people.

your right on here on your figures but that does not help the current cap situation. that being said

 

good stuff!

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