About The Cap?

[Frozen700]

can someone with alot of knowledge explaine to me how it works...and what it prevents n causes? and does the money come out of the owners pocket? or from sales within the stadium throughout the year?.....and if it does come out the owners pocket why cant they spend all they want? i have a pretty good idea on how it works but i read a few confusing things on here..this is probally the only part of the NFL i know a little about...thanks in advance.

 

[RxMan]

I can explain it a little bit. As the owner, all of the revenue is his. Does it come out of the owners pocket? Yes. Because if he didn't spend the money then it would add to his profit. I guess you could compare it to upgrading eqiupment at the office.

The signing bonus is spread out over the life of the contract, but cannot exceed 50% of the total contract.

For example. You sign someone to a 5 year $20 million contract with a $10 million bonus. The cap 'hit' for the first year would be $2 million from signing bonus plus the base for the year. Usually, the base is low at the beginning and higher each year.

 

[Frozen700]

I can explain it a little bit. As the owner, all of the revenue is his. Does it come out of the owners pocket? Yes. Because if he didn't spend the money then it would add to his profit. I guess you could compare it to upgrading eqiupment at the office.

The signing bonus is spread out over the life of the contract, but cannot exceed 50% of the total contract.

For example. You sign someone to a 5 year $20 million contract with a $10 million bonus. The cap 'hit' for the first year would be $2 million from signing bonus plus the base for the year. Usually, the base is low at the beginning and higher each year.

hmmm ok thats a pretty good explanation..thanks alot bro

 

[BLT]

is the cap going up a lot again next year?

 

[jksmith269]

The main reason fr the cap is to keep big market teams like the Boys, Skins, Giants and others from buying championships. It helps keep the playing feild level so smaller market teams like Cleveland, NC, Jax and others in the market for FA's and such.

 

[Crown Royal]

is the cap going up a lot again next year?

We won't know until the end of the season. The cap is adjusted every year based on the aggregate revenue of each team and the league itself. Make more money, cap goes up.