Pack93z
  • Pack93z
  • Select Member Topic Starter
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
Mucky Tundra (1h) : @jalenreagors They’re discussing if Sheduer can go back to college on NFL Network LMFAOOOOO
beast (3h) : Great point Martha
beast (3h) : Buddy Ryan used to say if a candy bar goes missing, there are two to blame, Rex and Rob 🤪 jk 😁
Martha Careful (6h) : Bum Phillips used to say there are two ways to get better. Get better players or get players to play better. We have a new DL coach
Zero2Cool (6h) : Yes. Look at the losses last year. They can win.
beast (6h) : Can Packers win with their current DL?
bboystyle (8h) : waiting for a pass rusher.
dfosterf (10h) : 5 minutes between picks in the 3rd
dfosterf (10h) : 3rd. Hate this phone
dfosterf (10h) : 4rd
dfosterf (10h) : 5 minutes in the 4
dfosterf (10h) : 7 minutes between picks in the 2nd round
Martha Careful (10h) : Sorry to bitch, but the headline writers in that section absolutely mislead, or don't know how to read. It is maddening
Martha Careful (11h) : No thanks. Not a dependable guy to be in the right place and run the right route. Dumb as a box of rocks.
Zero2Cool (11h) : Losing 2nd round pick for a one year rental, not ideal. Especially a headcase.
TheKanataThrilla (12h) : Pickens for Jaire may be interesting. Definitely not sure we want Pickens long term.
dfosterf (12h) : No.Absolutely not
Zero2Cool (12h) : NO NO NO NO NO NO!!1 🤬🤬🤬🤬🤬
dhazer (12h) : scenario: Our main prospects are off the board when our pick comes around, do we just throw a 2nd round pick at Pittsburgh for Pickens
TheKanataThrilla (12h) : Hopefully she had some comfort that her son will be live his dream when she passed away. Sad news.
Mucky Tundra (13h) : Damn that sucks
Zero2Cool (13h) : News about Derrick Harmon mom, saddening.
Zero2Cool (15h) : Mark Murphy: "I predict we will trade up once and down twice."
beast (16h) : Rip the Packers and getting the fans yelling and booing him
beast (16h) : Super competitive Bears fan and WWE "superstar" wrestler, Seth Rollins is supposed to announce a Bears pick and absolutely rip Packers
packerfanoutwest (25-Apr) : Golden
beast (25-Apr) : I want DT Derrick Harmon, Oregon
Mucky Tundra (25-Apr) : And I can't be looking at my phone
Mucky Tundra (25-Apr) : Hey I'm at work lol
Zero2Cool (24-Apr) : btw, new site chat won't delete auto like
Zero2Cool (24-Apr) : because everyone left like wimps
TheKanataThrilla (24-Apr) : I am wondering if there is some type of autoclear when there isn't activity after a certain amount of time.
Mucky Tundra (24-Apr) : What happened in the chat? Me and Zero posted a few things earlier and they're all gone
dfosterf (24-Apr) : 10-15 min bs plus flyover
dfosterf (24-Apr) : Yes
Zero2Cool (24-Apr) : 7pm is when this kicks off????
buckeyepackfan (24-Apr) : I told him. IT'S VONTE MACK , no matter what!
buckeyepackfan (24-Apr) : He asked me who I thought The Browns were taking.
buckeyepackfan (24-Apr) : 2. Would of had to wear Browns gear all week. NOPE I'll watch from my living room.
buckeyepackfan (24-Apr) : He wanted to know if I would go. 2 things, would have had to fly from Detroit to Green Bay. Nope
buckeyepackfan (24-Apr) : All expense paid trip to the draft. He will be in the Browns section. I told him to say hi to J-10VE for me 😃😃i
buckeyepackfan (24-Apr) : For a call from my nephew, he won an sllexp
TheKanataThrilla (24-Apr) : Hope to see everyone in the Chat tonight!!! Go Pack Go!!!
TheKanataThrilla (24-Apr) : Jeanty would be a great pick-up for the Bears. I see Warren mocked to them as well who I think would be a great selection.
Zero2Cool (24-Apr) : GameDay Chat is open. Posting bits an tids in there.
Zero2Cool (24-Apr) : Excellent Source: The Bears have a deal in place to move up to 5 if Jeanty is there.
Zero2Cool (24-Apr) : Probably not until 10pm will be making pick
dfosterf (24-Apr) : But it is still not tonight. Lol
wpr (24-Apr) : Today is finally here.
dfosterf (24-Apr) : I should have put it in quotes
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