Salary cap numbers incomplete?

[DefenseRules]

http://www.profootballtalk.com/rumormill.htm

CAVEAT ON CAP NUMBERS

A league source has contacted us regarding the accuracy of the cap numbers that we posted earlier today. Although those numbers currently are accurate, it turns out that the numbers are incomplete.

Per the source, the current numbers do not reflect several key pieces of information that will reduce the cap room available as of March 1.

First, the "official" numbers have not yet been adjusted by the league to reflect so-called "not likely to be earned" incentives that players achieved in 2006. By definition, these payments do not count against a team's 2006 cap number. They hit the cap in 2007.

A prime example in this regard is Jets quarterback Chad Pennington. With doubts swirling last year at this time regarding his ability to return to form, he slashed his salary for 2006 but remained in position to earn most if not all of it back through incentive payments.

And he did. Those extra payments to Pennington will thus eat into the $20 million in cap room available to the Jets.

Likewise, the $3 million bonus earned by Panthers defensive end Julius Peppers for making it to the Pro Bowl this year is not reflected. And that's bad news for Carolina, since without this extra charge the team is already $2.5 million over the $109 million limit.

Second, any "likely to be earned" incentives that were not met in 2006 result in a cap credit for 2007. Teams with surplus cap money in 2006 but no plans to use it often will insert such incentives that, although categorized as "likely to be earned" are, as a practical matter, not earned. Because these incentives count against the 2006 cap, the money carries over to the next year if the incentive is not earned.

Third, any 2007 salary escalators triggered by players in 2006 are not yet reflected. If, for example, a player's 2007 salary based on his contract is $1 million but his performance numbers pushed his salary to $2 million for 2007 due to an escalator clause, that extra million has not yet been wiped off of the books for the purposes of the 2007 cap numbers.

Fourth, the Giants will get a cap credit from Tiki Barber's retirement, since his $4.15 million salary for 2007 is currently on the books, and thus reflected in the cap numbers.

Interesting information.

 

[DaBruinz]

Its nothing new. What they also don't mention is the CREDITS that teams will get for giving players LTBE bonuses that weren't earned. Like the Pats giving Koppen a 1.9 million LTBE bonus for playing on Special teams and Antwain Spann a 2.95 million LTBE bonus which I am pretty sure he didn't earn either.

 

[MoLewisrocks]

I had a feeling all the chickens hadn't come home to roost just yet.

Pennington had about $9M of his money incentivized into 2007 as I recall, at a time when I'm sure no one believed he would ever earn it back. Lowered his cap to around $3M in 2006. And I would be astonished if Manning didn't have lots of little incentives in his deal including SBMVP - not with Tom Condon as his agent.

We know we pushed around $6M forward via LTBE which would push us up to $34M before any NLTBE's are factored in. If there even were any this season.

 

[mgteich]

I would think that we might be assessed cash over cap charges as well as playoff bonus incentives.

I had a feeling all the chickens hadn't come home to roost just yet.

Pennington had about $9M of his money incentivized into 2007 as I recall, at a time when I'm sure no one believed he would ever earn it back. Lowered his cap to around $3M in 2006. And I would be astonished if Manning didn't have lots of little incentives in his deal including SBMVP - not with Tom Condon as his agent.

We know we pushed around $6M forward via LTBE which would push us up to $34M before any NLTBE's are factored in. If there even were any this season.

 

[Miguel]

Its nothing new. What they also don't mention is the CREDITS that teams will get for giving players LTBE bonuses that weren't earned. Like the Pats giving Koppen a 1.9 million LTBE bonus for playing on Special teams and Antwain Spann a 2.95 million LTBE bonus which I am pretty sure he didn't earn either.

They do mention it
"Second, any "likely to be earned" incentives that were not met in 2006 result in a cap credit for 2007. Teams with surplus cap money in 2006 but no plans to use it often will insert such incentives that, although categorized as "likely to be earned" are, as a practical matter, not earned. Because these incentives count against the 2006 cap, the money carries over to the next year if the incentive is not earned."

 

[DarrylS]

I would think that we might be assessed cash over cap charges as well as playoff bonus incentives.

Jonathan Kraft said they were over in a recent radio interview with Michael Felger.. he indicated they will face some minor penalties this year.

 

[Jimke]

I think there will be more dollars added to our cap than will be subtracted.

 

[MoLewisrocks]

Jonathan Kraft said they were over in a recent radio interview with Michael Felger.. he indicated they will face some minor penalties this year.

I thought he said they would not, which was one of the points he was stressing - that they did not want to be penalized and that was why they had been unable to get some deals done. Felger later said he is not sure the league has finalized the plan and the Pats (typically) are operating as if they know what it likely will entail and acting accordingly. But he, Felger, could care less about loosing a million or two or three or five, whatever, down the road under a $100M+ cap. I got the impression that the Pats are anticipating a plan (somewhat similar to MLB) where you can go over periodically as long as you don't do it consistently (i.e. the penalty will be assessed on those who do it in back to back seasons).