Hardy contract impact on 2016 cap

[Kaiser]

Always trust posts from AdamJT.

 

[Direwolf63]

The only other way is that the cap hit keeps going up this year as he plays more games. In which case the Cowboys would have to keep an additional 6mill on the books to pay it out.

I believe this is how it works. Once Carr is cut and Dez is signed long term, there will be room to keep Hardy. His 2015 cap number rises as he plays games. But 2016 is unaffected as I understand it.

 

[CashMan]

I believe this is how it works. Once Carr is cut and Dez is signed long term, there will be room to keep Hardy. His 2015 cap number rises as he plays games. But 2016 is unaffected as I understand it.

I was thinking, that we get credited when he is suspended, on next years cap, for what he missed this year.

 

[speedkilz88]

That is completely wrong. The per game pay will be charged to 2015. Only about 1.8M of incentives will go on the 2016 cap.
It does not really matter which year, it's all about the total amount. Any team with cap flexibility is concerned about the total multi-year cap impact. The specific year issues can be manipulated as needed.

Yeah, I don't get with so much concern on what year it counts.

 

[guag]

*Uses the AdamJT bat signal*

 

[jterrell]

Honestly it doesn't matter all that much.
Hardy is going to face some type of suspension and his real max total even if 10m can easily be handled whenever we decide or need to do so.

Dallas has a lot of moves open to them, which is why they shouldn't ever flip all those switches at once day 1 of the league season like they used to.

It is very likely they free up cap space from both a Carr release or restructure(yea, yea i know his agent says no.. today) and a Dez extension.

The key was just that we don't need the money today so do not need to panic and make any other moves today.

Obviously Dallas could keep Hardy for 4 or 5 games and just cut him. He'd earn zero dollars after the cut date and cost us nothing else unless he was released after meeting some incentives.

The NLTBE doesn't apply too much here because it is a 1 year deal. It DID apply for Melton because that was structured as more than one year.

 

[DFWJC]

Not likely to be earned incentives. Where do you think the other 10mill of his contract is?

You mean LIKELY to be earned incentives.
Except the very max incentives, all of his incentives look very achievable for a player of his caliber.

 

[Kaiser]

*Uses the AdamJT bat signal*

Adam already posted what XWalker said, it all counts this year (weekly, as its earned) except for the 1.8MM in incentives that will count next year if he earns them.

 

[guag]

Adam already posted what XWalker said, it all counts this year (weekly, as its earned) except for the 1.8MM in incentives that will count next year if he earns them.

Oh my bad, was this in another thread? I didn't see that yet.

 

[BlindFaith]

Honestly it doesn't matter all that much.
Hardy is going to face some type of suspension and his real max total even if 10m can easily be handled whenever we decide or need to do so.

Dallas has a lot of moves open to them, which is why they shouldn't ever flip all those switches at once day 1 of the league season like they used to.

It is very likely they free up cap space from both a Carr release or restructure(yea, yea i know his agent says no.. today) and a Dez extension.

The key was just that we don't need the money today so do not need to panic and make any other moves today.

Obviously Dallas could keep Hardy for 4 or 5 games and just cut him. He'd earn zero dollars after the cut date and cost us nothing else unless he was released after meeting some incentives.

The NLTBE doesn't apply too much here because it is a 1 year deal. It DID apply for Melton because that was structured as more than one year.

So what are his Per Game Bonuses designated as - LTBE or NLTBE? On spottrac I see only 2 games as LTBE. Doesn't that make the remaining games NLTBE? And when do these designations have to be made? When the contract is signed? A later date? What is that later date? The day before the season starts?

And why shouldn't they be NLTBE? Based on the language I posted, it compares to what the player did last year. Last year he was suspended and only played 1 or 2 games. I'm guessing that's why the contract has called for only 2 games to be LTBE. And how do we know how many games he'll play this year?

The key here would be if they could treat the remaining cap hit as NLTBE then they could push that hit to next year. This means they wouldn't have to do anything with Carr or Romo. Or they could still cut Carr and use his cap savings on resigning someone else.

 

[Apollo Creed]

I trust Adam, pretty sure he wrote the contract.

 

[BlindFaith]

You mean LIKELY to be earned incentives.
Except the very max incentives, all of his incentives look very achievable for a player of his caliber.

Yeah, unless he decides to get into trouble again...I know, right.

 

[EST_1986]

Incentives. If he doesn't earn them, they aren't paid. If he does earn them they are, on this year's deal.

They're pushed forward, the cap hit this year is based on how many games he played last year as apart of that likely to be earned incentives, anything else is going to be a hit next year.

 

[DFWJC]

Yeah, unless he decides to get into trouble again...I know, right.

use some BlindFaith

 

[BlindFaith]

use some BlindFaith

I picked that moniker back when I was young and nieve. I'm old and grouchy now.

 

[Nightman]

Adam already posted what XWalker said, it all counts this year (weekly, as its earned) except for the 1.8MM in incentives that will count next year if he earns them.

Here it is. Hardy will count an additional 580k per game after Game 2. They will need to have another 8m available this year.

Per-game roster bonuses that are deemed NLTBE, like most of Hardy's will be, get charged to the cap as soon as they are earned. His sack incentives won't get charged to the cap until the end of the season. So, once we know the length of his suspension (if any), we'll know how much cap room we'll need to carry into this season for him.

 

[Hostile]

How do incentives affect the Salary Cap?

Incentives are written into some contracts to pay a player for reaching certain performance criteria. Incentives come in two varieties – Likely To Be Earned (LTBE) and Not Likely To Be Earned (NLTBE) – each of which has different Salary Cap implications.

Likely To Be Earned Incentives (LTBE) are incentives based on performance levels that were reached in the prior season. LTBEs count against the Salary Cap in the year they are scheduled.

For example, if a RB ran for 1,200 yards last year and he has an incentive that will pay him $100,000 if he runs for 1,000 yards this year, the incentive would be a LTBE Incentive and would count against the Salary Cap this year.

On the other hand, if the RB ran for 1,000 yards last year and he has an incentive that will pay him $100,000 if he runs for 1,200 yards this year, then incentive would be Not Likely To Be Earned (NLTBE) and would not count against this year’s Salary Cap.

If the player does not earn a LTBE Incentive, then the amount of the incentive ($100K in our example) will be credited against the following year’s Salary Cap and the team would have $100K in additional Cap space in the following year.

The opposite happens with NLTBE Incentives. If those are earned, they are charged to the following year’s Salary Cap. In our example, that would mean that the team would have $100K less in Cap space the following year.


How can anything be LTBE for Hardy if he only played 1 game last year?

BF, I am not trying to cause an issue here, but sir, you are wrong. Roster bonuses and incentives count towards the current contract, which expires after the 2015 season and therefore will not be pushed into the 2016 cap.

 

[jterrell]

So what are his Per Game Bonuses designated as - LTBE or NLTBE? On spottrac I see only 2 games as LTBE. Doesn't that make the remaining games NLTBE? And when do these designations have to be made? When the contract is signed? A later date? What is that later date? The day before the season starts?

And why shouldn't they be NLTBE? Based on the language I posted, it compares to what the player did last year. Last year he was suspended and only played 1 or 2 games. I'm guessing that's why the contract has called for only 2 games to be LTBE. And how do we know how many games he'll play this year?

The key here would be if they could treat the remaining cap hit as NLTBE then they could push that hit to next year. This means they wouldn't have to do anything with Carr or Romo. Or they could still cut Carr and use his cap savings on resigning someone else.

They chose the way they set up the contract so they pay for what they get out of Hardy this year.
It was intentional.
They are no longer trying to push money off on a regular basis.

The majority of the game checks are NLTBE based upon last year's 1 game but they are paid out as earned.
It is set up to hit this cap but only as they accrue.
I "believe" that is because it is a 1 year deal.

Whatever the case he counts either 2.65 or 3.2m mil right now and allows the team plenty of time to make cap adjustments and conduct the draft.
His cap cost won't rise until the actual games begin and by then Dallas will have made a lot of moves.

 

[Doomsday101]

Contract Notes:

• Per Game Bonus: $578,125 (2 LTBE, $9.25M total)
• Workout Bonus: $1.3116M
• 8 Sacks: $500,000
• 10 Sacks: $1,000,000
• 12 Sacks: $1,400,000
• 14 Sacks: $1,804,400
• Can't be tagged in 2016

http://www.spotrac.com/nfl/dallas-cowboys/greg-hardy/

 

[garyv]

There is a cap hit for 2016 which I will look again but it shows he would be 3 to 4 million for 2015 and the rest something around
9 million in 2016 baring he gets the full 13 million worth of extras in the contract.