Cap Strategy Question

[miamirw]

If there's no cap in 2007, what's to stop us from going to all of our veterans now and offering them a raise to restructure their contracts. We backload all of them to the uncapped year and save a ton of money this year. And won't every team do that?

Seems to me that would be a good gamble (the downside of course is if there is an extension reached next year).

As it stands, all those teams that pushed their paybacks to the far future will be getting a get out of jail card in 2007 (uncapped).

 

[miamirw]

I know that the a signing bonus would factor into this, but in exchange for not taking a salary bonus we could throw in "likely to be earned incentives" that would give a lump sum to the veteran in the uncapped year.

 

[trayphin]

Someone correct me if I'm wrong but with an uncapped year, all likely to be earned incentives count to this years cap space....I'm not sure..........and I'm really confused about the whole situation as far as what counts towards what. Either way, this feels a little like the begining of the end.

 

[Eric-Honduras]

Because tomorrow this agreement could be signed.or next week. and then Dolphins have a serious cap issue next year..

 

[Alex44]

If it were that simple all teams would do it, lets not get ahead of ourselves and think we can solve the cap issues like this, if we could they would be paying us to do it

 

[Aqua and Orange]

I think it's too late to do this and far too risky. I think we're stuck this time around.

 

[NLude33]

ALL incentives for any point in the contract count this year.

 

[DolfanDaveInMI]

The way I would structure contracts for the marquee free agents we want to bring in is to give them a minimum salary this year with the team having to pay next March 1 either a roster bonus to pick up the rest of the contract or a buyout. Makes sense for the player in that they get a long-term deal in an uncertain environment (with most of the first year compensation guaranteed but back-loaded), the team is only committed to one year if the player doesn't work out, and the March 1, 2007 payment will either be spread out in a new CBA or paid in an uncapped year. Thoughts from the cap gurus?

 

[Merman]

The CBA has rules written for the "last capped year" to induce both sides to extend it. The 30% rule, which mandates no increase of salary of more than 30% each year is not permitting back-loaded contracts as usual.

The option bonus, which is a signing bonus, specifically is included as salary for the 30% rule and the 25% rule for rookies.

This rule also limits the simple restructure that was so effective at making cap room.

There is no problem signing free agents if you have the cap room because there are no back-loaded contracts this year. If you don't have cap room making it is difficult this year without extending the CBA.

LTBE incentives are charged to Team Salary as usual but are immediately credited back when the incentive becomes impossible to achieve during the season.

NLTBE incentives are charged to Team Salary when earned during the season rather than the end of the year as usual. The problem is a team could go over the cap during the season. No team can be over the cap. The team would then be forced to restructure contracts or release players to come back into compliance. There are no rules to govern this situation other than not have less than 42 players, not being over the cap and any penalties associated with that.

The media is writting some very confusing things about incentives and none more than Frerotte making an additional $3 million if the CBA is not extended. If it is the same incentive he earned last year then it is LTBE and should be charged to Team Salary as soon as the New Year starts. If it is a NLTBE incentive then it is not charged until earned.