Barry Jackson Notes: Future of the Cap, Pre Training Camp Notes, RT and Pennington | Page 4 | FinHeaven - Miami Dolphins Forums

Barry Jackson Notes: Future of the Cap, Pre Training Camp Notes, RT and Pennington

Southbeach 2 said:
The salaries are NOT deducted from the guaranteed money, which belongs to the player. They are only deducted from the team's cap because the team does not have to pay them.

For example, a player is due to be paid $10M for this year. $5M is guaranteed, and in the players pocket no matter what happens. The other $5M is not guaranteed. So, you cut that player, and he gets his guaranteed $5M but, the team saves the other $5M off the cap by not having to pay him.

They are NOT directly connected but, do cancel each other out in the bigger salary cap deal.
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ok...just seems like a get out of jail free card to me...seems too easy...i guess i got some homework to do
 
hooshoops said:
ok...just seems like a get out of jail free card to me...seems too easy...i guess i got some homework to do
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Let's go poster on this. I have $100 to pay you for 2 VG posts, and the first $50 is guaranteed for your first post. I pay you the $50 in advance, and don't want the second post. You have $50 in your pocket, and I keep the second $50. I lost $50, and kept $50.
 
hooshoops said:
where does it say anywhere in there that you can subtract salaries from cap hits on cut players with guaranteed moneys still on the table??? i don't see it...
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Two entirely separate deals. Guaranteed money to players, not guaranteed to team.
 
hooshoops said:
what about the $3 mil guaranteed in 2015...that has to be added in as well...

i'm confused about this base salary stuff can be subtracted from the guaranteed money cap hit if you let a guy go before all the guaranteed money in the deal has been paid out...if someone can provide concrete evidence of this i would appreciate it...anyone???
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as far as I understand it, only the $2.2 million is guaranteed in 2015. from what Southbeach is saying, if they cut him in 2015, they have to pay all of the remaining guaranteed money at that point which is a total of $6.6 million and would count against the cap.
 
There is too much confusion here...can someone just call up Dawn?

Speaking of, glad we have her to manage these last few pages of mess
 
rent this space said:
as far as I understand it, only the $2.2 million is guaranteed in 2015. from what Southbeach is saying, if they cut him in 2015, they have to pay all of the remaining guaranteed money at that point which is a total of $6.6 million and would count against the cap.
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$3M of his salary is also guaranteed in 2015, Total hit- $9.6M with the salary balance a cap credit.

Let's take Matt Moore's 2 year deal. This year, we gave him a $3M signing bonus, paid up front, cash in his bank. We also guaranteed his $1M salary this year. We have to pay him that no matter what, and Moore costs us a total of $4M in cash.

However, for the cap, the NFL allows teams to split up the signing bonus over the contract. In this case, it's a 2 year deal so the bonus is split in half, and instead of a $3M cap hit, it is only $1.5M this year and $1.5M next year.

Next year, that $1.5M is a cap hit regardless of any thing, cut or trade. Now, Moore also has a $4M salary in his deal for next year but, none of it is guaranteed. If he plays for Miami, we have to pay him $4M, and his total cap hit will be $5.5M when we add in the 2nd half of his pro-rated bonus.

If he is cut or traded next year, we do not have to pay him a dime on his salary (not guaranteed), and his cap hit is only the $1.5M from the bonus.

Here's where cap accounting comes into play. Moore plays for us next year, he is a $5.5 cap hit. Moore does not play for us next year, and he is a $1.5M cap hit. Bottom line is that we have to make a decision next year on saving or paying Moore $4M.

Hope that was clear, as the cap and contracts can be very confusing.
 
Ruckus45 said:
There is too much confusion here...can someone just call up Dawn?

Speaking of, glad we have her to manage these last few pages of mess
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It was much easier to be a fan before the salary cap but, once you have a basic understanding of how NFL contracts work, it's not all that confusing.
 
Southbeach 2 said:
$3M of his salary is also guaranteed in 2015, Total hit- $9.6M with the salary balance a cap credit.

Let's take Matt Moore's 2 year deal. This year, we gave him a $3M signing bonus, paid up front, cash in his bank. We also guaranteed his $1M salary this year. We have to pay him that no matter what, and Moore costs us a total of $4M in cash.

However, for the cap, the NFL allows teams to split up the signing bonus over the contract. In this case, it's a 2 year deal so the bonus is split in half, and instead of a $3M cap hit, it is only $1.5M this year and $1.5M next year.

Next year, that $1.5M is a cap hit regardless of any thing, cut or trade. Now, Moore also has a $4M salary in his deal for next year but, none of it is guaranteed. If he plays for Miami, we have to pay him $4M, and his total cap hit will be $5.5M when we add in the 2nd half of his pro-rated bonus.

If he is cut or traded next year, we do not have to pay him a dime on his salary (not guaranteed), and his cap hit is only the $1.5M from the bonus.

Here's where cap accounting comes into play. Moore plays for us next year, he is a $5.5 cap hit. Moore does not play for us next year, and he is a $1.5M cap hit. Bottom line is that we have to make a decision next year on saving or paying Moore $4M.

Hope that was clear, as the cap and contracts can be very confusing.
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I thought that extra $3 million was only guaranteed if there was an injury

http://www.spotrac.com/nfl/miami-dolphins/mike-wallace/
 
Southbeach 2 said:
Mondo quotes the site you gave me, as he has no mind of his own. :) The other says the same, which is news to me, and another good thing for the team. Thanks.
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De nada, it's nice to see good things like that come out after the fact. It was the opposite for a long time
 
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