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Cap will remain flat through 2014...and any spike won't be as dramatic as anticipated

Discussion in 'NFL Football Forum' started by MoLewisrocks, Mar 26, 2012.

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  1. MoLewisrocks

    MoLewisrocks PatsFans.com Supporter PatsFans.com Supporter

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    Multiple reports are now underscoring what Kraft stated yesterday. There will not be a huge jump in the cap come 2014 because of the TV deals, rather the increase will be steady and not start until 2015. One reason is that money is being borrowed from the future in order to have a $120M cap in the present. That money will be deducted when the TV money is factored in. Another is that local revenues are remaining flat. Quite a few teams have not increased ticket prices in some time and a few have decreased them due to decreased demand.

    Current projections per Casserly are for a $120M cap again in 2013, a $122M cap in 2014, and a higher cap come 2015. I'd guesstimate that they've already used several million in future cap space to prop up the cap in 2011 and 2012, and will borrow more in 2013 just to maintain it there, so the increase in 2015 might be <$10M.

    Brady is sooooooo getting an extension...
  2. betterthanthealternative

    betterthanthealternative Rookie

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    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    Can't we just get the 'Skins, Cowpokes, or Jets to cover everybody else?
  3. supafly

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    #24 Jersey

    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    Not the best news for those who were hoping to use the spike in terms of re-upping Gronkowski and Hernandez for the 2014 season.

    It will take some creativity to get it done, although one would assume that the team was already well aware of this situation; especially since they pretty much broke the news and got the party started.
  4. supafly

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    #24 Jersey

    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    As long as it's just their cash that they are offering, and not their business strategy or overall team records :eek:
  5. ausbacker

    ausbacker Brady > Manning. PatsFans.com Supporter

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    #51 Jersey

    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    It shows the importance of value guys toward the middle and bottom of the roster and the Patriots coaching up talent.
  6. betterthanthealternative

    betterthanthealternative Rookie

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    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    We are actually better off with this news, given that it deepens the reward for long term cap management discipline. The lower the cap, the better our chances of winning.
    Last edited: Mar 26, 2012
  7. supafly

    supafly PatsFans.com Supporter PatsFans.com Supporter

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    #24 Jersey

    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    Oh, I couldn't agree more.

    The NEP do not risk the future for the present, so it will affect us a lot less than the majority of the other clubs.

    However, in regards to the re-signing of the 2 TE's, I am simply saying that it will now take more creativity than maybe us as fans, originally thought.

    Like I mentioned, it's obvious that our team was well aware of this fact, which is a good thing. The resigning of some of these players will be very important, and take some creative thinking, as opposed to most here (including myself) who wrongly assumed that the cap would spike up in 2014.
    Last edited: Mar 26, 2012
  8. TB146

    TB146 Rookie

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    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    Just another reason I am SO HAPPY to have COMPETENT leadership in our franchise... they make it their business to understand these concepts, to stay on top of changes, to anticipate the future and be prepared no matter what happens.

    (They don't do stupid things like agree to and announce a trade when they haven't read the terms... etc...)
  9. Leemo

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    #87 Jersey

    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    I'd prefer the cap to be quite a bit higher than it is now. 140million maybe
  10. mgteich

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    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    That kind of increase helps other teams much more than it helps the patriots.

  11. BradyManny

    BradyManny Rookie

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    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    That's good news for the Pats who do better under a smaller cap than a lot of other teams.

    They still shouldn't have any problem coming to a deal with Gronk and Hernandez. Bottom line - if their perceived value of those guys is in line with what they and their agents think it is, they will continue to be New England Patriots.
    Last edited: Mar 27, 2012
  12. upstater1

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    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    $10 million a year to WRs. What were those teams thinking?
  13. ForThoseAboutToRock

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    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    Or paying Mark Anderson $27.5 million...
    Last edited: Mar 27, 2012
  14. patfanken

    patfanken Rookie

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    #91 Jersey

    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    The notion that the cap would keep going up forever is about as realistic as believing your house can only keep appreciating in value forever. When the cap first started IIRC, it was somewhere around $35MM Its now $120. Nothing keeps expanding without experiencing some down turns. If what they are saying is true about the league borrowing money to prop up the cap for the the next few years, then Bob Kraft's warning about the expected spike in 2014 no coming make a lot more sense now. Its never good to "borrow from Peter to pay Paul" long term.

    Hopefully the NFLPA and the agents will see the common sense in a slow growth of this incredibly lucrative pie, and not whine about that its "not big enough". If they do, they are fools. Players have never been as well paid, protected, and able to make money outside the game. To hear them whine about "not enough" is simply obscene.
  15. patfanken

    patfanken Rookie

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    #91 Jersey

    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    Yeah but the thing is about some of those contracts is that there is that for the media the deal is 4 years for $27.5, but in real dollars, its more like $10.6 for 2 years. Its not often that the players sees all the money in the non-guaranteed/back half of the contract. Does anyone really think that Mark Anderson will be a Bill in 2014?
  16. upstater1

    upstater1 Rookie

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    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    The reason people think the cap will expand rapidly is because of the new TV deals. They dwarfed the previous ones, and the NFL's popularity during a horrible recession has only INCREASED. Less money = more people staying at home watching the tube. Less money for production of TV shows means the NFL has one of the most compelling products. Look at college football. Those TV packages more than tripled in less than 10 years.
  17. PATSYLICIOUS

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    #12 Jersey

    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    I think they can still retain both if they were planning on doing so. As long as the cap increases the following year it shouldn't be an issue. Unfortunately, I don't see them paying 2 tight ends elite money. I bet just Gronk is resigned and AH gets similar money somewhere else. Would be great to be wrong about that though.
  18. betterthanthealternative

    betterthanthealternative Rookie

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    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    If we retain Gronkowski, our spikes will be just as dramatic as ever.
  19. Brady_to_Moss

    Brady_to_Moss Revis Island is here PatsFans.com Supporter

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    #95 Jersey

    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    I hope this isn't the case..i will be pissed if we can't keep them both..But Gronk is going to be getting A LOT of $$. Hernandez a decent amount as well. Don't know if they will spend that much on two tight ends..most teams wouldn't
  20. ctpatsfan77

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    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    There's never been a pair of TEs like GRONKnandez to contemplate before.

    Let's put this in perspective: in 2011, GRONKnandez had 24 receiving TDs (25 total, counting GRONK's "rushing" TD). The previous record for a TE unit was 18 TDs . . . set in 2010 by GRONKnandez with an assist from Crumpler.
  21. patsfaninpa

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    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip


    Glad to hear from Jonathan Kraft. The cap is based on revenues. If the revenue keeps increasing, the cap rises. Unless, you would like to see the Kraft Family keep a bigger pct. Nobody has said anything about borrowing money. It's a simple mathematical formula. The cap is a pct. of revenue. Don't believe the doomsayers or whomever you are listening to. The Krafts are doing fine.
  22. shmessy

    shmessy Maude Staff Member PatsFans.com Supporter

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    #75 Jersey

    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    Best of luck to your team, Mr. Snyder.
  23. MoLewisrocks

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    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    The mathmatical formula last season resulted in a cap of < $116M which was totally untenable from a union perspective so the sides agreed to borrow money from future caps to prop it up at $120.3M. This year the calculation resulted in a just a little north of $116M cap, a decrease of $4M. That was unacceptable to a lot of parties, so the league and union again agreed to borrow money from the future caps to increase this year's cap to $120.6M. That money will be deducted from the projected TV deals windfall.

    Last week Charlie Casserly projected that the 2013 AND 2014 caps would remain flat ($121M) and the increase by 2015 would only be to $122M. What Rich Cimini reports via Clayton that the executive committee of the Management Council in fact advised teams at the owners meetings substantiates the reports of those you characterize as doomsayers. Bob Kraft, who said last week he hoped that AFCE rivals would be spending in anticipation of a windfall that isn't coming, is a member of that committee. And he is doing fine... because his team manages the cap realistically with a long term vision.

    Jets could be choked by future salary caps - Jets Blog - ESPN New York
  24. PatsWickedPissah

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    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    Yet somehow the league pulls loopholes outa their asses e.g. the CBA paragraph that allowed poor cap management teams q.v. the NY Jets to escape from a $10M dead cap hell. I expect similar 'adjustments' to be made going forward that benefit certain teams.
    Last edited: Apr 1, 2012
  25. MoLewisrocks

    MoLewisrocks PatsFans.com Supporter PatsFans.com Supporter

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    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    Meh...at the end of the day how much has it really helped them... It's almost as if it creates a false sense of wellbeing that just causes them to keep making the same bold mistakes that have resulted in where are they at now...43 years and counting?
  26. patfanken

    patfanken Rookie

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    #91 Jersey

    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    I have NO idea what your are talking about. Its been DOCUMENTED that the league has borrowed money from the future revenues to prop up the cap numbers now. There is no "wishful thinking", its been reported by numerous sources

    Nothing I wrote in my post REMOTELY mentions or otherwise refers to the Krafts, so I have NO idea what all the sarcastic Kraft crap you wrote in your post. The only thing I mentioned about the Kraft was Bob's comment about future increases, which are being confirmed by more reporters with every passing day

    There are no "doomsayers" there is only economic fact. Prices and revenues do not JUST go up, or were asleep the Past 5 years. You are the delusional one if you are expect a $140MM cap anytime soon.

    You post is so far off base, I can only assume you are referring to another poster. BTW- the NFL could go belly up tomorrow and the Krafts would be "doing fine". :rolleyes:
  27. betterthanthealternative

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    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    This is inevitable as long as the Jests take the lead on irresponsible cap management and one of their employees is taking a sabbatical as Commissioner.
  28. jason423

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    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    I think what is going on here is that people expected this windfall with the new TV deal, except the NFL owners did not want what happened the last time with the rapid exploding cap so these deals see very slow growth early and will rise greatly later on. Its a good job by the owners to get costs back in line. They already did it with the rookie cap, which is in line to get rolled back this year and probably next year as well. They got the franchise tags rolled back.

    Now its time to roll the high level salaries back. Teams are still overpaying for what is considered top level talent. When you do that it forces your hand to fill up the rest of the team with low cost nobodies. The guys who lose are those mid level veterans. The Jets are a good example of that with alot of high priced guys and few mid range players. Prior to the Williams signing Buffalo was the other extreme with a collection of mid tier players making up the entire roster. I actually think the Pats are closer to the Jets with the exception of the fact that Brady is so good they can recruit players like Lloyd to play under market value.

    This is the first year of cold hard reality for the mid tier vets. There is no market for them. When teams dont win following the plans in place they are going to go to the agents with the high tier players (other than QB of course) and say "we just dont have the money to do it". For the most part the Jerod Mayo, David Harris, Nnamdi Asomuhga, Mario Williams, Bart Scott, Karlos Dansby, etc...deals will all be looked at as deals that can never happen again. Thats what the league really wants to happen. Higher tier talent on more reasonable contracts. Low rising caps will make it happen. The bottom line is the NFLPA got destroyed by the owners in this last renegotiation.
  29. Deus Irae

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    Re: Cap will remain flat through 2014...and any spike won't be as dramatic as anticip

    Absolutely. The moment the NFLPA agreed to a percentage below 50%, it was a beatdown victory for the owners. They didn't stop there, though, and won other important things, too, like the Commissioner still being judge/jury/executioner and locking in the deal for a full decade.
    Last edited: Apr 1, 2012
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