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Salary Cap Increase

Discussion in 'PatsFans.com - Patriots Fan Forum' started by solman, Mar 8, 2007.

  1. solman

    solman Rookie

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    AdamJT13 has reported on KFFL that the 2007 salary cap has been increased by $134,000 to $109,134,000.

    Because this adjustment is being applied equally to all teams, Adam doubts that this is a consequence of the cash adjustment mechanism in the new CBA.

    On this point he is probably wrong. If teams (in aggregate) spend over the cash cap, they are penalized on a per team basis. If teams spend under the cash cap, all teams receive the benefit of the adjustment.

    That means that in each capped year under the current CBA or through 2011 if it is extended, the cap will be increased by $134,000 for each team (over and beyond what the cap would otherwise have been).

    I had expected the Patriots to receive a modest cash over cap penalty, and I believe that Reiss attributed the same sentiment to Jonathan Kraft towards the end of the season.

    Its hard to predict what will happen next year. Obviously all these big FA deals come with large signing bonuses that count aginst the cash cap. But much of the guaranteed money is being paid out in future years, presumably to avoid a cash cap penalty.

    My guess would be that the few teams (like the Patriots) who were paying attention to the cash cap, will take it somewhat less seriously during the remainder of the 2007 season.

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