Teams have too much money left!

[shakadave]

Looking over the reasonably-up-to-date salary cap data at
http://www.askthecommish.com/salarycap/numbers.asp I'm amazed at how much money teams still have in reserve. 14 teams with double-digit millions to spend (the top ten teams average $14.3m!) and another 7 teams with $7m-$10m. I'm worried that teams have learned from NE, Phi, etc. how to be smarter with their money. Three years ago, we'd be one of only a handful of teams with cap room left about now.

Back to this year, even after signing all rookies, I don't see how teams will spend it all. I can see why Ty Law thinks he might get big money. I suppose there will be a lot more contracts extended during the summer than we used to get in a typical year.

 

[BelichickFan]

I'm worried that teams have learned from NE, Phi, etc. how to be smarter with their money. Three years ago, we'd be one of only a handful of teams with cap room left about now.

I think it's more due to the new cap number than fiscal restraint, especially when looking at the signings this past offseason. There just weren't enough UFA is one offseason to use up all the money.

 

[patchick]

I think it's more due to the new cap number than fiscal restraint, especially when looking at the signings this past offseason. There just weren't enough UFA is one offseason to use up all the money.

Yep...this year is something of an anomoly, because the cap is in "new" dollars, while rosters are still loaded with contracts written in "old" dollars. Chances are teams will work themselves into new cap trouble bit by bit as those legacy deals expire.

 

[WhiZa]

I'm also curious on why so many teams are holding onto that much cap space over the amount allocated for rookies. Perhaps they are waiting for some TC cuts?

 

[Tyler Faith]

Looking over the reasonably-up-to-date salary cap data at
http://www.askthecommish.com/salarycap/numbers.asp I'm amazed at how much money teams still have in reserve. 14 teams with double-digit millions to spend (the top ten teams average $14.3m!) and another 7 teams with $7m-$10m. I'm worried that teams have learned from NE, Phi, etc. how to be smarter with their money. Three years ago, we'd be one of only a handful of teams with cap room left about now.

Most teams haven't signed their draft pics yet either and a lot of the top highest amounts of cash teams listed are the weaker, lower record, earlier drafted, most expensive rookies teams. They need the breathing room just to get their new stars locked down.

Nice to see the Pats as the #2 team with the most in reserve though!

 

[pats1]

Welcome to the post-CBA extension NFL.

In 2003, the cap was around $75 mil.

In 2006, the cap will be at $102 mil.

 

[Lloyd_Christmas]

Welcome to the post-CBA extension NFL.

In 2003, the cap was around $75 mil.

In 2006, the cap will be at $102 mil.

No sense in wasting cap dollars this year. Extend some contracts or rework some deals to remove some of the BACK loading.

 

[patchick]

No sense in wasting cap dollars this year. Extend some contracts or rework some deals to remove some of the BACK loading.

Makes sense to me. The trick, of course, is that neither of these is nearly as straightforward as the tricks to push cap dollars to the future. Converting salary to bonus, for instance, is typically a no-brainer for both sides.

Writing an extension means not only agreeing on future money but most likely agreeing to sweeten the current year's deal. And moving money forward in a backloaded deal means a big new assumption of risk for the team -- essentially guaranteeing salaries that are 2, 3, 4 years down the road. In both cases it's not just cap dollars but real dollars at stake. I'll be curious to see what kind of strategies teams cook up as the season approaches.

 

[JustWinBrady]

I don't believe seymour's contract is on the books just yet. It will be sometime in august.

 

[RayClay]

Most teams haven't signed their draft pics yet either and a lot of the top highest amounts of cash teams listed are the weaker, lower record, earlier drafted, most expensive rookies teams. They need the breathing room just to get their new stars locked down.

Nice to see the Pats as the #2 team with the most in reserve though!

Bet you could help some of those teams spend to the cap, Tyler.

No offense.

 

[shakadave]

I don't believe seymour's contract is on the books just yet. It will be sometime in august.

Do we know how much of a cap hit Seymour will cost us in August?

Also, if it's time for the season to start and we still have significant cap space, wouldn't we reverse the usual trend and make somebody's bonus money into 2006 salary? Then we'd REALLY have spending room for 2007.

 

[Miguel]

Do we know how much of a cap hit Seymour will cost us in August?

IIRC, Adamjt reported on this board:
"The "extension" is for only three more years past 2006. Seymour got a renegotiation bonus of $5.34 million, prorated at $1,335,000 per season. He also got a workout bonus of $100,000 in addition to his standard $6,160 workout bonus. His $585,000 base salary, plus his $1,335,000 prorated bonus and $100,000 additional workout bonus add up to $2.02 million -- exactly what his salary would have been, which is why his cap number is the same.Next year, Seymour is due an option bonus of $18.66 million. If the option is not exercised, Seymour will become a free agent in 2008, and his 2007 base salary becomes $19.26 million AND is guaranteed. He has workout bonuses of $106,720 each season from 2007 through 2009.His cap numbers each season will be $4,420,160 in 2006, $8,261,720 in 2007, $8,391,720 in 2008 and $11,346,720 in 2009."

From a very reliable resource - "fyi, the $18.66M option bonus is actually two option bonuses . . . the first, for $6.66M is due between aug. 4 of this year and march of next year . . . the second, for $12M is due by march 7 of next year"

While the Pats can pay Seymour his option bonus in August, as far as I can tell, they are not under any obligation to do so, which is why I do not have the option bonus hitting the 2006 cap yet.

Also, if it's time for the season to start and we still have significant cap space, wouldn't we reverse the usual trend and make somebody's bonus money into 2006 salary? Then we'd REALLY have spending room for 2007.[/QUOTE]

 

[Miguel]

Cap Room versus Rookie Pool

Team Rookie Pool 5/30 Cap Room Gross Difference
Philadelphia $4,256,970 19,258,941 $15,001,971
New England $4,617,429 16,948,850 $12,331,421
San Diego $3,724,681 14,721,141 $10,996,460
New Orleans $5,220,174 14,101,770 $8,881,596
Jacksonville $2,871,527 13,849,216 $10,977,689
Arizona $4,100,955 13,711,949 $9,610,994
Minnesota $3,708,617 13,070,950 $9,362,333
New York Jets $6,631,295 13,065,284 $6,433,989
Dallas $3,786,517 12,891,215 $9,104,698
Seattle $2,830,866 11,722,808 $8,891,942
San Francisco $5,646,962 11,643,083 $5,996,121
Green Bay $6,647,633 10,791,770 $4,144,137
Cleveland $4,876,144 10,580,843 $5,704,699
Buffalo $5,366,937 10,533,775 $5,166,838
Cincinnati $3,688,985 9,734,772 $6,045,787
Detroit $4,121,438 9,429,979 $5,308,541
Indianapolis $3,157,508 9,037,570 $5,880,062
Kansas City $3,394,243 8,837,310 $5,443,067
Tampa Bay $4,213,367 8,259,637 $4,046,270
St. Louis $4,880,531 7,144,511 $2,263,980
Baltimore $4,762,876 7,026,792 $2,263,916
Chicago $2,899,270 5,276,760 $2,377,490
Carolina $3,673,327 4,729,051 $1,055,724
Denver $3,853,423 4,514,313 $660,890
Washington $2,241,339 4,239,799 $1,998,460
New York Giants $3,523,882 3,276,080 ($247,802)
Pittsburgh $3,852,681 3,219,914 ($632,767)
Miami $3,023,638 3,066,387 $42,749
Houston $5,390,902 2,749,588 ($2,641,314)
Oakland $4,504,263 2,374,897 ($2,129,366)
Atlanta $2,069,514 1,636,389 ($433,125)
Tennessee $5,844,517 795,935 ($5,048,582)

Please note that Houston's cap room includes the effect of signing Mario Williams. The Steeler's cap room includes the effect of signing a draft pick - Willie Colon.

Please note that the NET cap effect of signing draft picks will be much less than the gross number because of the rule of 51. For example, signing Willie Andrews will have a net cap effect of around $14,000 (projected signing bonus proration) because his cap number of $289,000 is less than the cap number of the player with the 51st highest cap number ($425,000).

 

[Tyler Faith]

Bet you could help some of those teams spend to the cap, Tyler.

No offense.

Yes, I'd be happy to accept some new Channel or jewelry...but how that relates to this thread, I'm unaware?! Go to General Talk if you want to jump off the football topic buddy.

 

[zippo59]

Miguel whenever you start talking cap my eyes cross and the text blurs into a mass of indiscernible characters. I respect your knowledge on the subject so much because I have no idea what's going on.

 

[marty]

Miguel whenever you start talking cap my eyes cross and the text blurs into a mass of indiscernible characters. I respect your knowledge on the subject so much because I have no idea what's going on.

Ahhh, an honest response to the subject!!!! I'll second that and just add...
Is this a case of... "to be tight, or not to be tight, that is the question!

I'm confident that our FO will make the best of the new CBA rules/monies.

 

[aabtec]

I'm also curious on why so many teams are holding onto that much cap space over the amount allocated for rookies. Perhaps they are waiting for some TC cuts?

The cap has gone up but has the talent ? While many teams are under the cap by double didgits there does not seem to be the talent that warrants spending big money. Plus the owners are not going to let their GM's write stupid contracts. There are more BB disciples out there now.

 

[zippo59]

The cap has gone up but has the talent ? While many teams are under the cap by double didgits there does not seem to be the talent that warrants spending big money. Plus the owners are not going to let their GM's write stupid contracts. There are more BB disciples out there now.

As someone pointed out we are in the transition period where the cap goes up big but the contracts have stayed relatively the same. Over time the contracts will catch up and the players will take up the same percentage of the cap as they were before. This is how inflation works.

 

[Lloyd_Christmas]

Also, if it's time for the season to start and we still have significant cap space, wouldn't we reverse the usual trend and make somebody's bonus money into 2006 salary? Then we'd REALLY have spending room for 2007.

Right! That is what I was thinking... there was a big jump in the cap this year, so it would be dumb to waste that cap money... better to push some future cap money forward and max out this year's cap in order to save some cap space in future years.

 

[Mike the Brit]

As someone pointed out we are in the transition period where the cap goes up big but the contracts have stayed relatively the same. Over time the contracts will catch up and the players will take up the same percentage of the cap as they were before. This is how inflation works.

Right.

And agents, who aren't stupid (snakes, maybe, but clever ones) know this and have a strong incentive to wait before doing a deal until some of that inflation takes place. You can bet that there are plenty of teams approaching players offering to extend contracts at rates that last year the player would have jumped at -- but their agent is saying: let's hold off on this for a while.