News: Quick cap update (8/15/07)...$13,045,204

Discussion in 'News Zone' started by AdamJT13, Mar 1, 2007.

  1. xpistofer

    xpistofer Active Member

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    you stole my question...

  2. AdamJT13

    AdamJT13 Salary Cap Analyst

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    Yes, roster bonuses count even before they're paid. Any bonus that is scheduled to be paid counts against the cap as if it will be paid. The only bonuses that don't count until after they're earned or paid are NLTBE incentive bonuses.
  3. Hostile

    Hostile The Duke

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    I thought so, and even was right about what the explanation would be. I think I'm starting to get the hang of this topic better.

    COWBOYSNUM1 Active Member

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    How does releasing Rivera affect our cap?
  5. AdamJT13

    AdamJT13 Salary Cap Analyst

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    It would add $1.64 million. I'll do an update after the numbers officially come through.
  6. MichaelWinicki

    MichaelWinicki "You want some?" Staff Member

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    I'm glum about the "dead-money" Rivera will be costing us next year... :(
  7. cowboyed

    cowboyed Garrett Groupie

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    How do you manage the cap like poetry? Ok I'll take a stab at it...

    No raise Ellis, you are overzealous
    Tony you'll soon be worth more than maccaroni
    Owens, no matter what you do this year you will be goin's
    Glenn in 2008 you'll be waving bye bye then
    Crayton for big money keep on waitin
    Spencer, Jerry will be your money dispenser, rush for real and you will get a mega deal

    Ok, I will quit while I am behind but move over Herman Melville, here I am...
  8. AdamJT13

    AdamJT13 Salary Cap Analyst

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    Update (6/14/07) -- After releasing Marco Rivera and signing Adam Bergen, we are now $13,882,031 under the cap.
  9. ljs44

    ljs44 Active Member

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    I have a quick cap question. With 13 mill under, if Jerry decides to sign Romo to a contract before the season, isn't there a way to make his gauranteed cash count only towards this season, and then make the remaining years more cap friendly in terms of salary? Can't they give him a large roster bonus for being on the team at the start of the season (say 10 mil)?

    So Jerry can lock him up with a long term deal, but if he tanks (he won't), they can go in a different direction next year and not have dead money for years to come, it would just be a one time hit this year. And if he turns into the real deal, they put in more roster bonuses down the line, kind of like TO's deal.

    I'm not a cap guy, but I was just wondering if there was a way for them to sign Romo to a "big" deal, but protect themselves as well. Please drop some knowledge on me.

    Thanks in advance for your response and all the insight you give to this board.
  10. AdamJT13

    AdamJT13 Salary Cap Analyst

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    Yes, we could do that. But there's really no reason to do it that way -- you don't need to take a bigger hit this season to save money for future seasons, because you can always push this year's leftover cap room into next season (and next year's into the following year, ad infinitum).

    If someone gave you an interest-free loan and five years to pay it off, would you try to pay it off ASAP? Or would you hold onto as much as possible, earn interest on it, and pay it off a little at a time? If you did it that way, you'd not only earn the interest, you'd also still have the money in case you needed it. The only reason to pay it off early would be to have it paid off -- there's no financial incentive, and you wouldn't still have that money if you needed it.

    By spreading the cap hit over his contract instead of taking a huge hit this season, we keep more cap room for this season, in case we need it. Even if we don't sign him until late in the season, it's better to keep more cap room and push it into next season than to "use up" this year's cap room on him, because then we have more cap room next season. And by spreading out the cap hit, it's actually making the same amount of money use a smaller percentage of our total cap. For example, let's say we're talking about a $5 million hit this season or $1 million hits for each of five seasons (2007-2011). The $5 million hit would be 4.47 percent of our total cap this season, but the five $1 million hits would add up to only 4.06 percent of our total cap if the cap increases by 5 percent per season. It's like earning interest, plus we have the cap room available sooner if we need it. If we don't, then we just push it forward and have it later anyway.
  11. Big Dakota

    Big Dakota New Member

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    Hey Adam, explain how teams push money into the following years cap. Because we as fans always hear guys like Spags saying you can't do that.
  12. Yeagermeister

    Yeagermeister Active Member

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    It's the unlikely to be earned bonuses.

    Let's say Julius has a clause that he gets a 1 mil bonus for rushing for 3000 yds. We all know that won't happen so they can push that in to next year and gain another mil on the cap.

    I think that's how it goes.
  13. AdamJT13

    AdamJT13 Salary Cap Analyst

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    They actually have to be LIKELY to be earned bonuses. The loophole is that ANY incentive added after the start of the regular season is (by rule) considered likely to be earned and counts against the cap. When the incentive is not earned, that money gets credited back to the team's cap in the following season. So, teams simply can add an unreachable incentive (10 interceptions for a backup safety, etc.) to a player's contract late in the season in order to "use up" any remaining cap room. And they get that amount added to their cap room the next season.

    Last year, we did that with Abram Elam, pushing $3.1 million forward to this season. And 22 other teams did the same thing.

    Here are all 23 teams that used the loophole last December to gain cap room this season, with the players involved and the amounts --

    Jacksonville -- Kenneth Pettway, $8.46 million
    Kansas City -- Kawika Mitchell, $8,256,000
    New Orleans -- Jay Bellamy $7.7 million
    Houston -- David Anderson, $7,646,065
    San Francisco -- Anthony Adams, $5,525,000; Keith Lewis, $1,135,473
    Cleveland -- Clifton Smith, $4,096,020
    Seattle -- Will Heller, $3.3 million
    New England -- Troy Brown, $350,000 (also got $50,000 signing bonus); Antwain Spann, $2,913,410
    Carolina -- Brett Basanez, $1.6 million; Steven Jackson, $1.6 million
    Dallas -- Abram Elam, $3.1 million
    Buffalo -- Shaud Williams, $3 million
    Detroit -- Claude Harriott, $1.61 million; Dave Pearson, $635,000
    Baltimore -- Matt Katula, $2.1 million
    Minnesota -- Wendell Mathis, $1.19 million
    Indianapolis -- Matt Ulrich, $1 million
    N.Y. Giants -- Chase Blackburn, $570,000
    Oakland -- Derek Miller, $557,700
    Denver -- Damien Nash, $539,788
    Philadelphia -- Shawn Barber, $500,095
    Green Bay -- Noah Herron, $500,000
    Chicago -- Cameron Worrell, $400,000
    Washington -- Ade Jimoh, $265,215
    Tennessee -- Drew Bennett $250,000
  14. jdavis85

    jdavis85 New Member

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    Very good info on the cap look like there is another comboy fan out there that looks at the behind the scenes instead of wins and losses for the week:bow:
  15. kTXe

    kTXe On To The Next One

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    Adam, this is awesome info. I don't know how you know this stuff, but one day, I will convince you to tell me (and somehow convince you to get me a job in the league in the process :D). Learning stuff like this is the reason that I peruse the internet for all the Cowboys/NFL info I can find. You really are the man.

    (This uncomfortable message board profession of man-love is brought to you by a 12-pack of Shiner Bock. *passesoutoncouch*)
  16. cowboyed

    cowboyed Garrett Groupie

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    It also doesn't hurt that the cap keeps ratcheting higher each and every year. adamjt13 or others is there a defined formula or rhyme or reason on the yearly cap increase percentages. I read somewhere that our cap went up 20% last year.

    Those are significant ceiling increase dollars, and doesn't it seem that the NFL is starting to loosen the financial tourniquet and enabling the larger market teams to regain the buying leverage they once had over smaller market teams.
  17. burmafrd

    burmafrd Benched

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    the cap is the same for all teams. BUT owners like Jerrah can write a check for $20 million right now while some cannot. Its the immediate bonus money that makes a big difference. I know some other teams would have liked to have gone after Davis, Stenbach, THomas, etc. BUT they could not right big bonus checks right away-and that handicaps them.
  18. ljs44

    ljs44 Active Member

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    Thank you. And UDAMAN!
  19. Double Trouble

    Double Trouble Well-Known Member

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    I think it's more that many teams won't write the bonus check, not that they can't.
  20. fan62

    fan62 Active Member

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    How much of this cap money is expecting to be used to sign the drafted rookies?

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