Gumby
In the Starting Line-Up
- Joined
- Oct 4, 2004
- Messages
- 4,563
- Reaction score
- 2,853
FWIW the new CBA closed a loophole that allowed teams to advance salary. It was becoming a habit with a lot of deals - and especially rookie ones - being written absent signing bonus because of the difficulty in recovering it after some of the arbitrator rulings in the mid 2000's. You could pay them more of their guaranteed money up front with recapture clauses that protected the team if the player screwed up or forced a trade or something... I believe in these cases teams had to count the advance in the present, so Denver will be getting a credit but only for the amount that is being reimbursed. They will have to eat the rest as sunk cost. You only get credit on cap expenditures when they are reimbursed (like Atlanta did only for the amount of Vick's signing bonus they could actually ultimately recover). NY will never pay the half they are not reimbursing (Tebow already has it and it's somewhere on Denver's cap) so they aren't on the hook for it - but they will be on the hook for the money they are reimbursing that will come off Denver's cap. That will be in addition to his 2012 and 2013 actual salaries. So he is costing them an extra $2.5M against the cap than what they likely thought he would.
Thanks for the answer Mo.
IF you are right,(and I assume you are); that just makes this all the more hilarious. Another 2.5M cap hit on the JESTERS. LOL. :singing:
And while we are talking about stupid cap hits; I wonder too if the extra .5M on Stanton gets any hit on them or if it all goes to the DOLTS.
(oops; saw someone else said the Jesters do take the hit
This just keeps getting better and better.
Last edited: