Ross Absorbing Dead Money

[So Be]

Two years ago we cut Dansby and Burnett, which costs just under $7M in dead money we split between 2013 and 2014 with a post June 1 cut, We signed Ellerbe and Wheeler with cheap first year money, which escalated in year two. So, Ross has shown the willingness to do this, and Wallace is a similar deal.

IF we do make this move, we should expect Hickey & Company to come up with a better replacement value than Ireland did.

 

[Fins1971]

That money is all part of the salary cap and comes from TV revenue. That doesn't hurt Ross one bit. He does have to make sure the team has enough cash on hand to make big signing bonuses. But other than that I see no effect.

 

[So Be]

That money is all part of the salary cap and comes from TV revenue. That doesn't hurt Ross one bit. He does have to make sure the team has enough cash on hand to make big signing bonuses. But other than that I see no effect.

Not true. The dead money is paid to the player, and we take the cap hit. However, the dead money comes back to the salary cap, and the team has to spend that money a second time, which is a loss to Ross.

 

[Fins1971]

Not true. The dead money is paid to the player, and we take the cap hit. However, the dead money comes back to the salary cap, and the team has to spend that money a second time, which is a loss to Ross.

Player salaries are paid from TV contracts.

 

[So Be]

Player salaries are paid from TV contracts.

Team revenue is almost all from TV, and the team pays players with it. You're missing out on how dead money is handled with the cap. For example. Wallace will cost us $9M on a cap hit if moved. This is guaranteed money in his bank account.

That same $9M comes back to the team next year on the salary cap. We can spend it again on another player/players but, in actual cash, it was paid to Wallace and will be paid again to another player. This is a cash loss to Ross but NOT on our cap over 2 years.

 

[Fins1971]

Team revenue is almost all from TV, and the team pays players with it. You're missing out on how dead money is handled with the cap. For example. Wallace will cost us $9M on a cap hit if moved. This is guaranteed money in his bank account.

That same $9M comes back to the team next year on the salary cap. We can spend it again on another player/players but, in actual cash, it was paid to Wallace and will be paid again to another player. This is a cash loss to Ross but NOT on our cap over 2 years.

It is just like using a credit card. If you want to spend next years money now then you will have less to spend next year.

Not following you at all on the paying twice.

 

[So Be]

It is just like using a credit card. If you want to spend next years money now then you will have less to spend next year.

Not following you at all on the paying twice.

It's actual cash vs salary cap money. Wallace gets his $9M if he is moved. That cash is history. On the salary cap, we can spend that same cash again next year as we get the cap space back but, not the cash paid to Wallace, which is lost. We get to send it twice on the cap with a $9M loss in actual cash.