Article About Commanders Cap Machinations

[Skinsmaniac]

"As of March 11th, the Commanders had a total team salary amount of $141.6 million, by virtue of the Haynesworth and Hall renegotiations of March 12th, this number is now roughly $170 million. To put this in perspective, the baseline salary cap in 2009 was $128 million. So what did the Commanders do?

In his infamous $100 million contract of 2009, Haynesworth had a $21 million option bonus. As part of the deal, the Commanders reserved the right to convert that option bonus to signing bonus, and that’s exactly what they did according to league sources. However, they did this conversion with a slight twist. Not only did they convert the option bonus to a $21 million signing bonus, but they also added a voidable provision by which if Haynesworth pays back $16.8 million of the signing bonus, then the 2011 – 2014 contract years void away. From a team salary accounting standpoint, because the voidable is solely in the player’s control, the proration of the signing bonus does not go into 2011 – 2014, meaning all of the $21 million signing bonus counts in the uncapped year of 2010. As a result, Haynesworth’s team salary number in 2010 went from $8.8 million to a whopping $25.6 million. His subsequent team salary numbers are $6.4 million, $8.2 million, $10 million, $10.8 million, and $12.8 million respectively. With this new voidable provision, if Haynesworth decides he's unhappy with his role in the Commanders' new 3-4 defense and he can come to an agreement in principle with a new team that would guarantee him the $16.8 million he'd have to pay back to the Commanders, then in theory 2010 could Haynesworth's last year in Washington.

Similarly, Hall had a $15 million option bonus in his contract signed in the 2009 offseason. The Commanders converted this $15 million to signing bonus and also provided Hall with the voidable clause, whereby the entire $15 million, from a team salary accounting standpoint, stays in 2010. As a result of this maneuver, Hall’s team salary number went from $6.8 million to $18.3 million in 2010. His subsequent manageable team salary numbers are $5.3 million, $6.8 million, $8.3 million, and $9.5 million respectively."


More at the source:
http://insidethecap.blogspot.com/2010/03/Commanders-finally-leverage-uncapped-year.html

 

[Califan007]

Shrewd move on the FO's part. Might cost Snyder more than he'd like this year but at least it helps keeps the cap manageable once it returns, especially if things don't work out with AH or Hall.

 

[Skinsmaniac]

Shrewd move on the FO's part. Might cost Snyder more than he'd like this year but at least it helps keeps the cap manageable once it returns, especially if things don't work out with AH or Hall.

Yeah if Haslett decides this year that Haynesworth doesn't fit the 3-4 well, there will be plenty of teams who will want to trade for him at those relatively cheap cap numbers.

 

[AmishCowboy]

Could the Commanders be finally getting their act together?

 

[arglebargle]

Danny Boy was always putting off the cap crash into the future, betting on higher overall caps that he could manuever under, or a no capped year. In this aspect, his plans have paid off.

******.

 

[Big Dakota]

He's a fat turd and you're still gonna suck hind tit.

 

[Califan007]

Yeah if Haslett decides this year that Haynesworth doesn't fit the 3-4 well, there will be plenty of teams who will want to trade for him at those relatively cheap cap numbers.

Exactly...actually, Bruce Allen coming on at the time he did was pretty good timing lol. I don't EVEN wanna imagine what Vinny would be doing right now if he were still in charge.

Could the Commanders be finally getting their act together?

I obviously hope so lol

Danny Boy was always putting off the cap crash into the future, betting on higher overall caps that he could manuever under, or a no capped year. In this aspect, his plans have paid off.

******.

It's one of the few times his plans have, so I'm willingly giving him credit lol...

 

[Bob Sacamano]

Shrewd move on the FO's part. Might cost Snyder more than he'd like this year but at least it helps keeps the cap manageable once it returns, especially if things don't work out with AH or Hall.

It's not that shrewd because they aren't going to maximize Albert Haynesworth's worth as it will be awhile before they become competitive again. By that time, Haynesworth could well be gone.

 

[Skinsmaniac]

It's not that shrewd because they aren't going to maximize Albert Haynesworth's worth as it will be awhile before they become competitive again. By that time, Haynesworth could well be gone.

They can trade Haynesworth if they want because his cap numbers after this year will be a bargain. They essentially leveraged the uncapped year into an option: if they are good, they can keep him; if they are bad they can trade him and plan for the future.

 

[silverbear]

"As of March 11th, the Commanders had a total team salary amount of $141.6 million, by virtue of the Haynesworth and Hall renegotiations of March 12th, this number is now roughly $170 million. To put this in perspective, the baseline salary cap in 2009 was $128 million. So what did the Commanders do?

In his infamous $100 million contract of 2009, Haynesworth had a $21 million option bonus. As part of the deal, the Commanders reserved the right to convert that option bonus to signing bonus, and that’s exactly what they did according to league sources. However, they did this conversion with a slight twist. Not only did they convert the option bonus to a $21 million signing bonus, but they also added a voidable provision by which if Haynesworth pays back $16.8 million of the signing bonus, then the 2011 – 2014 contract years void away. From a team salary accounting standpoint, because the voidable is solely in the player’s control, the proration of the signing bonus does not go into 2011 – 2014, meaning all of the $21 million signing bonus counts in the uncapped year of 2010. As a result, Haynesworth’s team salary number in 2010 went from $8.8 million to a whopping $25.6 million. His subsequent team salary numbers are $6.4 million, $8.2 million, $10 million, $10.8 million, and $12.8 million respectively. With this new voidable provision, if Haynesworth decides he's unhappy with his role in the Commanders' new 3-4 defense and he can come to an agreement in principle with a new team that would guarantee him the $16.8 million he'd have to pay back to the Commanders, then in theory 2010 could Haynesworth's last year in Washington.

Similarly, Hall had a $15 million option bonus in his contract signed in the 2009 offseason. The Commanders converted this $15 million to signing bonus and also provided Hall with the voidable clause, whereby the entire $15 million, from a team salary accounting standpoint, stays in 2010. As a result of this maneuver, Hall’s team salary number went from $6.8 million to $18.3 million in 2010. His subsequent manageable team salary numbers are $5.3 million, $6.8 million, $8.3 million, and $9.5 million respectively."


More at the source:
http://insidethecap.blogspot.com/2010/03/Commanders-finally-leverage-uncapped-year.html

While I see the thinking here, what that basically means is that they're paying two players 36 million dollars in bonus this year when they're in rebuilding mode...

I don't know how fiscally sane that is...

 

[Cowboys22]

I'd like to hear Adam's take on these manuvers. He expained several weeks ago that signing bonuses will not accelerate into the uncapped year but will carry over when the cap comes back. I find it hard to believe that the league will allow a team to circumvent the cap like this if this is the only uncapped year. I have a feeling this article doesn't have all the facts and some of these dollars will have to be accounted for if the cap comes back.

 

[SaltwaterServr]

I'd like to hear Adam's take on these manuvers. He expained several weeks ago that signing bonuses will not accelerate into the uncapped year but will carry over when the cap comes back. I find it hard to believe that the league will allow a team to circumvent the cap like this if this is the only uncapped year. I have a feeling this article doesn't have all the facts and some of these dollars will have to be accounted for if the cap comes back.

Real curious about that myself. Looks like Danny might have popped a loop hole there the NFL might not approve of and the NFLPA for sure won't.

I cannot see the NFLPA being on board with a player's contract structured so that they are forced to pay back bonuses to void years.

These contracts might be renegotiated, but we'll see if the NFL approves them first.

 

[AdamJT13]

I'd like to hear Adam's take on these manuvers. He expained several weeks ago that signing bonuses will not accelerate into the uncapped year but will carry over when the cap comes back. I find it hard to believe that the league will allow a team to circumvent the cap like this if this is the only uncapped year. I have a feeling this article doesn't have all the facts and some of these dollars will have to be accounted for if the cap comes back.

It's perfectly legal. If the player has the right to void the remaining years of his contract, a signing bonus can't be prorated into those years. That's been in the CBA all along.

 

[MarionBarberThe4th]

Adam did you get your comp pick projections out this year? Sounds like you hit on most I was wondering if the NFL guys picked up on it before they were announced

 

[SkinsHokieFan]

While I see the thinking here, what that basically means is that they're paying two players 36 million dollars in bonus this year when they're in rebuilding mode...

I don't know how fiscally sane that is...

Fiscally sane? You know this is the WASHINGTON Commanders

Things are never fiscally sane up here

Regardless, Snyder has the money to afford this with the 350 million in revenues (or whatever the hell the number is) the team brings in each year.

This essentially becomes a contract year for both of them if they choose, and there won't be the huge cap hit in the out years (if the cap comes back, which nobody can be sure of yet)

 

[Sonny#9]

Fiscally sane? You know this is the WASHINGTON Commanders

Things are never fiscally sane up here

Why NOT do it now? We have only 5 picks in the draft, the FA pool is about as shallow as the kiddie pool without the pee. Why not free up the space in future years when the Commanders are more in a position to contend?

Get the years of uncontrolled spending under control in one year. With little or no ramifications. It makes perfect sense to me...of course I am drinking the Shannallen antidote to the Snyderatto poison by the gallon!

 

[SkinsHokieFan]

Why NOT do it now? We have only 5 picks in the draft, the FA pool is about as shallow as the kiddie pool without the pee. Why not free up the space in future years when the Commanders are more in a position to contend?

Get the years of uncontrolled spending under control in one year. With little or no ramifications. It makes perfect sense to me...of course I am drinking the Shannallen antidote to the Snyderatto poison by the gallon!

I was talking fiscally insane as in federal gov't/Washington DC

i think this is a fantastic move

 

[Screw The Hall]

Real solid future cap maneuvering here by the Skins.

 

[TellerMorrow34]

They're very sound moves by the Skins to help themselves in the future. I'm almost certain, after seeing this, and knowing the kinds of players that Hall and AH are that they'll be playing for someone else in 2011 and the Skins will be off the hook for the stupid contracts, in terms of cap ramifications, they gave them in the first place.

 

[Skinsmaniac]

They're very sound moves by the Skins to help themselves in the future. I'm almost certain, after seeing this, and knowing the kinds of players that Hall and AH are that they'll be playing for someone else in 2011 and the Skins will be off the hook for the stupid contracts, in terms of cap ramifications, they gave them in the first place.

I really doubt that either Hall or Haynesworth buys out their contracts for those amounts. That would be a major risk. What may happen is that the Commanders trade them. I can imagine a team giving up a first rounder for Haynesworth since they'll only have to pay him $6-12 million each year over the last four years of his deal. If that happens, the front office essentially bought a first round pick, which is something I can get behind.