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Former Green Bay exec Andrew Brandt: "The salary cap is just accounting"


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I have been saying it for years, but I think Andrew Brandt, who was the salary cap guru in Green Bay for a time jointed the Pat McAfee show yesterday to talk salary cap, specifically with the Rams moves and I think this is before the Kupp deal dropped. He does a really excellent job of explaining how so long as you have cash rich owners willing to spend up front the NFL salary cap is not the restriction people think. It's an accounting cap that should not stop good and smart teams from signing players so long as revenues continue to increase.

 

 

 

Remember folks - the salary cap is just accounting. 

Edited by GunnerBill
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  • GunnerBill changed the title to Former Green Bay exec Andrew Brandt: "The salary cap is just accounting"
1 minute ago, Canadian Bills Fan said:

So..... We'll be able to sign Knox then?

 

If we want to, yes. The Bills are still in a position where no move they want to make is off the table. And to Brandt's point, it is really hard to get to that point if you have cash rich owners and an ever expanding cap. 

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The key is that many believe that the NFL is due for a salary cap explosion in a couple years. The only reason to be cautious is if you worry about another pandemic or natural catastrophe, otherwise, you should be able to continue to move money to the future.

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33 minutes ago, GunnerBill said:

...

 so long as revenues continue to increase.

...

There are many tools available to play with the cap, but they ultimately rely on two elements.

1. Structure contracts to ensure you have the flexibility to spend every cap dollar.  This typically means over commiting but with flexibility to restructure or defer as needed.

2. Push cap hits out to later years.  With increasing annual caps, the guy you'd pay 5% of your cap this year only costs 3% of your cap in 3 years.  This is the finance and account aspect of it.  "Cap inflation" if you will.  

 

These two factor combined allow teams with sufficient cash to pay 10 or 20% more to players than teams which are conservative and don't take advantage of the full cap or expected cap increases.   The 2nd half of this only provides value in a rapidly increasing cap environment. At some point it should stabilize, bringing actual cap spend closer.

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Just keep pushing it into the future as the Cap should continue to rise.  I think it depends on how wealthy the owner is and your GM Philosphy.. But Didn’t the Rams have like 22 million of Dead Cap money from Goff last year? If so to be able to carry that and win the SuperBowl is about as good as you can ask for. 

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1 minute ago, Rew said:

There are many tools available to play with the cap, but they ultimately rely on two elements.

1. Structure contracts to ensure you have the flexibility to spend every cap dollar.  This typically means over commiting but with flexibility to restructure or defer as needed.

2. Push cap hits out to later years.  With increasing annual caps, the guy you'd pay 5% of your cap this year only costs 3% of your cap in 3 years.  This is the finance and account aspect of it.  "Cap inflation" if you will.  

 

These two factor combined allow teams with sufficient cash to pay 10 or 20% more to players than teams which are conservative and don't take advantage of the full cap or expected cap increases.   The 2nd half of this only provides value in a rapidly increasing cap environment. At some point it should stabilize, bringing actual cap spend closer.

 

I mean maybe it stablises at some point.... but for now that is not the world we are in. The increases are going to be significant for the next few years. 

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It’s the owners private club folks, they make and enforce or not enforce their rules as they see fit, they are not doing anything to slow the gravy train, ever.

 

GO  BILLS!!!     

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Always has been, and what I have been saying for years going back to the Ralph ownership days.  If your owner is willing to spend CASH the cap is nothing to that team.  

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this is not 100% true. The cap comes into play. Not like the fans think is should or did, but it does. The cap does cause some hard decisions.

If not then why did the Rams not match offers for Von Miller? They had money put aside, but determined to expensive to match, and then used that money to extended Darnold. They could of just pushed it down the road but didn't, so I believe the cap did force that hard decision.

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15 minutes ago, ddaryl said:

this is not 100% true. The cap comes into play. Not like the fans think is should or did, but it does. The cap does cause some hard decisions.

If not then why did the Rams not match offers for Von Miller? They had money put aside, but determined to expensive to match, and then used that money to extended Darnold. They could of just pushed it down the road but didn't, so I believe the cap did force that hard decision.

 

9 minutes ago, 13 Second Prevent Defense said:

Which is why Tyreek Hill is still in KC.

You both are missing the point-the reality is the cap isn’t as constricting as people think it is. Are there times where decisions have to be made? Sure. These guys who run these front offices though have gotten so good with the cap that they know how to manipulate it to sign the guys they really want, and the Rams have been showing that for several years now. If you can’t see that, you are intentionally ignoring what’s going on around the league 

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13 minutes ago, Ya Digg? said:

 

You both are missing the point-the reality is the cap isn’t as constricting as people think it is. Are there times where decisions have to be made? Sure. These guys who run these front offices though have gotten so good with the cap that they know how to manipulate it to sign the guys they really want, and the Rams have been showing that for several years now. If you can’t see that, you are intentionally ignoring what’s going on around the league 

 

Isn't as constricting doesn't mean open money spending.  There are salary cap cuts every year.

 

You can't tell me KC didn't think Tyreek Hill wasn't worth the money or AJ Brown wasn't worth the money in TN.  

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5 minutes ago, Royale with Cheese said:

 

Isn't as constricting doesn't mean open money spending.  There are salary cap cuts every year.

 

You can't tell me KC didn't think Tyreek Hill wasn't worth the money or AJ Brown wasn't worth the money in TN.  

The WR market is ridiculous any more.

 

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11 minutes ago, 2020 Our Year For Sure said:

Since it relies on ever-increasing investment from ownership, do the Bills who pull in relatively little revenue each year compared to other teams ever reach a point where ownership has to pull back? Or with revenue sharing are we good forever?

I think with a new majority public financed stadium and NFL franchise valuations skyrocketing, the Pegulas have no excuses in terms of paying players.  I bet their $1.4b investment is worth at least $3b today with a new stadium on horizon and Broncos selling for $4.5b.  

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