TheHustler said:
Read it again.
The Rochester Democrat and Chronicle reports the Buffalo Bills have to decide what to do with WR Eric Moulds and ORT Mike Williams. Each carries a cap figure of roughly $10.8 million.No team can tie up $22 million in two players, particularly a receiver that turns 33 and a lineman that lost his starting job. The Bills could release both players and see a cap savings of more than $10 million. However, because Moulds and Williams are each under contract for two more years and still have major amounts of past bonus money that's yet to be amortized, whatever Buffalo saves in cap room will be given back in "dead" money.
They would save $10 mill by not having to pay their salaries, BUT the prorated signing bonuses "major amounts of past bonus money" would push their cap hit back to $20 million.
They aren't going anywhere.
That is not correct. I found this on a Bills board on the "salary cap forum" for both players. It sounds right to me.
Eric Moulds
2006
Salary: $6.089 million
Old proration: $2 million (from $12 million s.b. he rec'd in 2001)
New Proration: $1,666,667
Reporting bonus: $1 million (likely due at start of training camp)
Work out bonus: $100,000
Pro Bowl bonus: $200,000 (NLTBE)
Cap hit: $10,855,667
IF MOULDS is Released or trade before reporting bonus due
I believe the reporting bonus is due at the start of training camp. However, I doubt the Bills will wait to decide on whether Moulds stays or goes. They would have to carry his large cap number all off-season. If the Bills do not work out a restructuring (i.e. paycut), then it's likely that he's gone before the 2006 League Yr begins in March '06.
Cap savings = 2006 cap hit - remaining proration
$5,522,333 = $10,855,667 - $
5,333,334
Mike Williams
2006
Salary: $4 million
Roster bonus: $3 million
Amortized bonus: $3,453,333
"Deion" debit: $360,431
(add all 4)
Cap hit: $10,813,764
2007
Salary: $5 million
Amortized bonus: $3,453,333
"Deion" credit: ($1,081,293)
(add 1st 2 and subtract credit)
Cap hit: $7,372,040
Timing is everything. It depends on when the roster bonus is due. In 2005, his $3 million roster bonus was due July 1 (or thereabouts) and it was "guaranteed". That is, converted to signing bonus and spread out over 2005-2007 at $1 million/yr. It saved $2 million on 2005 cap, but added $1 million to each of 2006 & 2007. (I do not know if this conversion added to his "Deion" charges)
One scenario exists:
Release or trade before roster bonus due whatever date: I would assume Bills decide not to pay roster bonus and release him. The cap savings are:
Cap hit - remaining amortization = cap savings
$10,813,764 - (2 X $3,453,333) = $
3,907,098 in 2006
$
7,372,040 on 2007