Pack93z
  • Pack93z
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13 years ago
Another good read if you enjoy the numbers behind the football..


Breaking In the New Cap 

With a brand new Collective Bargaining Agreement (CBA) in place over the next ten years -- and no way for either side to get out of it (which got us into the mess we were in the past five months) -- it will take some time for everyone to learn some of its most important features. I have received scores of questions about what the new CBA does and doesn’t contain. With last week’s frenzy as an initial guide to how things may transpire, let’s look at some of its nuances.

Still soft after all these years

The Salary Cap (“Cap”) has been a hallmark of the NFL system since 1993 and still is. And there was never a doubt that the Cap would remain as a feature of the new system. Unlike the CBA negotiations in 2006, the NFLPA never even tried to leverage the possibility of an uncapped NFL, having seen the lack of spending in the uncapped 2010.

We hear about a “hard Cap” in labor disputes, with NBA Owners desperately trying to “harden” their Cap, even pointing to the NFL as a model. However, while thought not as “soft” as the NBA version, the NFL is still a soft cap -- a “yarmulke”, if you will.

How soft? In the last capped year, 2009, while never being “over the Cap” of $123 million, teams like the Cowboys and Raiders had cash spending of over $150 million!

Cash over Cap

Manning signed for $90 million but lowered his Cap charge by $7 million.

A couple recent contracts negotiated from high-Cap Franchise tags show the continuing loophole for teams to drive through on Cap spending. Peyton Manning was scheduled to make a Cap and cash number of $23 million in 2011. When he negotiated his $90 million deal replacing that one-year deal, his cash in 2011 now approaches $30 million but his Cap charge was reduced to $16 million. Thus, with only one player, the Colts are spending up to $14 million more in cash over Cap!

Similarly in Pittsburgh, LaMarr Woodley was scheduled to make $10 million this season. Upon negotiation of a six-year $60 million deal to replace the tag, Woodley will now make over $18 million in 2011 yet his Cap charge is reduced to $6.5 million. Thus, on Woodley alone, the Steelers are paying cash over Cap of $11.5 million.

Proration salvation

How does this happen? Signing bonuses are treated in different ways for cash and Cap: (1) for cash purposes, they are treated as fully paid, regardless of deferrals; and (2) for Cap purposes, they are prorated through the life of the contract.

As an example, Charles Johnson of the Panthers received a $30 million signing bonus on a six-year deal. It is treated as $30 million for cash purposes in 2011, yet due to Cap proration of signing bonuses, only $5 million for Cap purposes in each year between 2011 and 2016. Were Johnson to be released or traded prior to 2016, the $5 million of annual Cap charges would accelerate immediately into the then-existing Cap.

In my opinion, however, the less proration the better. I always tried to “pay as you go”, preferring high salaries and roster bonuses (not prorated) to contain Cap charges in the year of negotiation rather than building up unamortized charges into the future. More and more teams are trying to get to that consistent approach to roster management.

The proration loophole shows how the NFL Cap has remained “soft” and how teams can easily spend more cash than their Cap number. Which leads to questions about the teams that may not spend their cash or Cap....

The Minimum Myth

In evaluating the new CBA and determining the “winners and losers” that we love to do, many -- including this writer -- evaluated the cash minimum spending requirements of the NFL and its teams to be important “wins” for the Players. I thought the key for the Players was to require the under-spending teams to spend up to higher floors, making the league more competitive and the players more evenly compensated.

Looking further into the details, I still think it’s a “win” for the Players, but not to the extent I had originally thought. Here’s the rub: there are no team spending requirements in this CBA until 2013!

There are league spending requirements, which is definitely a good thing for player spending, but it does not have the teeth relative to an individual team spending requirement.

The league spending requirement for 2011 and 2012 mandates that league wide cash spending reach 99% of the Cap, or approximately $3.8 billion of player spending. As shown above, teams can routinely spend more cash than Cap, with teams like the Panthers and Colts spending $30 million each on one player.

Thus, I don’t anticipate the minimum spending requirement being an issue in 2011. The NFL teams -- collectively -- will spend.

On the team level, however, there are no requirements this year and next. That allows teams -- pick your favorite target franchise not spending in this recent frenzy (Bengals, Buccaneers, Bills, Chiefs, etc.) -- to “free-ride” off of the higher spending teams while the league as a whole meets the spending requirement.

Even in the now-expired CBA -- the one that the Bills and Bengals voted against -- there were minimum spending Cap requirements, although no cash minimums. It is hard to know why at least Cap minimums were not included in the new CBA for this year and next. I know that tougher team minimums are coming in 2013, but that is for then to discuss, not now.

Time will tell if player spending on the team level is what the NFLPA hoped it would be for the next two years, but nothing is in place to mandate that. Cash over Cap lives, but not necessarily everywhere in the NFL....


"The oranges are dry; the apples are mealy; and the papayas... I don't know what's going on with the papayas!"
Fan Shout
Zero2Cool (14-Feb) : Packers are hiring Luke Getsy as senior offensive assistant.
Martha Careful (12-Feb) : I would love to have them both, esp. Crosby, but either might be too expensive.
Zero2Cool (12-Feb) : Keisean Nixon is trying to get Maxx Crosby and Davante Adams lol
Mucky Tundra (11-Feb) : Yeah where did it go?
packerfanoutwest (11-Feb) : or did you resctrict access to that topic?
packerfanoutwest (11-Feb) : why did you remove the Playoff topic?
Zero2Cool (10-Feb) : Tua’s old DC won a Super Bowl Year 1 with Tua’s former backup
Mucky Tundra (10-Feb) : *winning MVP
Mucky Tundra (10-Feb) : Funny observation I've heard: Carson Wentz was on the sideline for both Eagles Super Bowl wins w/guys supposed to be his back up winning
Zero2Cool (10-Feb) : NFL thought it would get more attention week preceding Super Bowl.
Zero2Cool (10-Feb) : Yes, the Pro Bowl. It was played Sunday before Super Bowl from 2010-2022
packerfanoutwest (10-Feb) : pro bowl
Zero2Cool (10-Feb) : From 2010 to 2022, it was played on the Sunday before the Super Bowl
Zero2Cool (10-Feb) : They moved it to the BYE week before Super Bowl several years ago.
packerfanoutwest (10-Feb) : it was always after the SB.....
beast (10-Feb) : Though I stop following pro bowl years ago
beast (10-Feb) : I thought the pro game was before the Super Bowl?
packerfanoutwest (10-Feb) : ok now for the Pro Bowl Game in Hawaii
TheKanataThrilla (10-Feb) : If I was Philly I would try to end it instead of punting it
Mucky Tundra (10-Feb) : VICTORY! We have (moral) victory!
TheKanataThrilla (10-Feb) : Hey they mentioned that we 3-peted
Mucky Tundra (10-Feb) : seems to me the 49ers should have traded Aiyuk when they had the chance
Mucky Tundra (10-Feb) : if the Eagles get it down to the 1, do they Tush Push or give it to Barkley?
TheKanataThrilla (10-Feb) : 49ers have a money problem if they want to sign their QB
Mucky Tundra (10-Feb) : Wait for real? Didn't he just get an extension two years ago?
Zero2Cool (10-Feb) : 49ers gonna trade Deebo. Interesting
TheKanataThrilla (10-Feb) : Replays always never seem to show the holdings
TheKanataThrilla (10-Feb) : Great throw by Hurts
Mucky Tundra (10-Feb) : Where Carter falls prey to bad off the field influences (to be clear, not saying he'd clip someone though)
Mucky Tundra (10-Feb) : Had Carter not gone to Philly were they already had a lot of old college friends, he ends up in a similar spot to Aaron Hernandez
Mucky Tundra (10-Feb) : I think some of his coaches told scouts to stay away
Mucky Tundra (10-Feb) : the street racing incident+conditioning and motivation problems
beast (10-Feb) : Then Carter was street racing, where the other car crashed and people died... and other teams were scared to pick Carter for some reason
beast (10-Feb) : I think the Saints traded up, giving their next year 1st to the Eagles, and then they sucked and Eagles got the 10th overall pick
packerfanoutwest (10-Feb) : wtf Barkley?
TheKanataThrilla (10-Feb) : Getting Carter and Nolan Smith in the first round in 2023 was pretty darn good
Mucky Tundra (10-Feb) : for some reason i'm thinking of a draft where the Eagles where in the mid 20s and a top player fell all the way to them
TheKanataThrilla (10-Feb) : I think so. I would need to look it up. Think it may have been Carolina's pick.
Mucky Tundra (10-Feb) : i'm not sure who i'm thinking of now
Mucky Tundra (10-Feb) : oh fuck me i messed that up
Zero2Cool (10-Feb) : Jordan Davis was 13th overall
Zero2Cool (10-Feb) : Carter was 9th overall
Zero2Cool (10-Feb) : Eagles had 15th and 10th selections, moved to 13 and 9 to get Davis and Carter back to back
Zero2Cool (10-Feb) : Eagles traded up for Carter, didn't they?
Mucky Tundra (10-Feb) : Obviously he was a huge risk but getting a top 5 talent on the dline in the mid 20s is fortuitous
Mucky Tundra (10-Feb) : Jalen Carter falling into their lap certainly helps
TheKanataThrilla (10-Feb) : And we could only wish to have this type of D
TheKanataThrilla (10-Feb) : It's not like Philly has had low draft picks, but has managed to get themselves a top notch pass rush. We spend so much draft capital of D
packerfanoutwest (10-Feb) : another crap halftime show
TheKanataThrilla (10-Feb) : I think it is over, but then I think of Atlanta and want Philly to go in with the same intensity in the second half
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