Uncapped Year FAQ

[Miguel]

Excellent work

 

[pats1]

I am quoting Adamjt13
What actually happens in an uncapped year??? - Page 2 - KFFL Community

A literal reading of the CBA explains it. I asked a former member of an NFL front office about it, and he confirmed my interpretation.

Here are the portions of the CBA that apply --

-----------------------------------------

(ii) Acceleration.

(1) For any player removed from the Team’s roster, or whose Contract is assigned to another Club via waivers or trade, on or before June 1 in any League Year prior to the Final Capped Year, or at any time during the Final Capped Year, any unamortized signing bonus amounts will be included in Team Salary for such League Year, except that for each League Year preceding the Final Capped Year, each Club may designate up to two Player Contracts that, if terminated on or prior to June 1 and if not renegotiated after the last regular season game of the prior League Year, shall be treated (except to the extent prescribed by Section 7(d)(iii) below) as if terminated on June 2, i.e., the Salary Cap charge for each such contract will remain in the Club’s Team Salary until June 2, at which time its Paragraph 5 Salary and any unearned LTBE incentives will no longer be counted and any unamortized signing bonus will be treated as set forth in Subsection (2) below. If acceleration puts a Team over the Salary Cap, the Team will have seven days to conform with the Salary Cap, but may not sign any players until there is Room to do so under the Salary Cap.

(2) For any player removed from the Team’s roster or whose Contract is assigned via waivers or trade after June 1, except in the Final Capped Year, any unamortized signing bonus amounts for future years will be included fully in Team Salary at the start of the next League Year.

-------------------------------------------


The first section (on or before June 1) applies only "in any League Year prior to the Final Capped Year, or at any time during the Final Capped Year." In an uncapped year, it does not apply. Therefore, there is no acceleration when a player is removed from the roster on or before June 1 in an uncapped year.

The second section (after June 1) applies in every season "except in the Final Capped Year." Therefore, even in an uncapped year, when a player is removed from the roster after June 1, any unamortized signing bonus amounts for future years accelerate into the next season."

which means that if AD was released any time in 2010 $4.4 million would be the dead money hit in both 2010 and 2011.

Good catch. I didn't read that section closely enough today. Would seem to keep teams from dumping salary in an uncapped year without penalty.

 

[Miguel]

-They may sign one unrestricted free agent with a first-year salary of at least $4,925,000 (that is a 2006 number, the 2010 number is adjusted by the % increase in total revenue, 2006-2010)
-They may sign as many unrestricted free agents with a first-year salary of $3,275,000 (again, not adjusted…does not include signing bonus proration)

I think that the $3,275,000 does include signing bonus proration.
"For purposes of this Article, “Salary” means Paragraph 5 Salary, roster and
reporting bonuses, pro-rata portions of signing bonuses, likely to be earned incentive bonuses, and other payments in compensation for the playing of professional football, as defined in Article XXIV (Guaranteed League-wide Salary, Salary Cap & Minimum Team Salary) below."

 

[Miguel]

FYI - The cap in 2006 was $102,000,000. The cap in 2009 was $127,997,000 - a 25% increase. I would use a 20% increase to approximate the increase in Total Revenue since some of the increases in the cap had to do with teams not spending cash.

 

[pats1]

AdamJT13 also makes a good point that thread you linked, Miguel. Because of the sheer number of RFAs on the market, there could be a domino effect where teams gain draft picks by losing RFAs and then use those draft picks to sign more RFAs. Like he said, there could be draft picks flying all over the place.

Miguel, is any of this important?

c) (i) Notwithstanding Subsections 2(b)(i) and 2(b)(ii) above, in the event that a Prior Club tenders any
of its Restricted Free Agents originally selected in a draft round lower than the first round a Qualifying Offer
that requires Draft Choice Compensation of one first round selection (the “(c)(i) Upgraded Tender”), the Prior
Club shall only be eligible to receive Draft Choice Compensation of one second round selection for any of its
Restricted Free Agents originally selected in the first round of the Draft, unless such Restricted Free Agents
have each received a Qualifying Offer of at least the amount of the (c)(i) Upgraded Tender.

(ii) Notwithstanding Subsections 2(b)(i) and 2(b)(ii) above, in the event that a Prior Club tenders any
of its Restricted Free Agents originally selected in a draft round lower than the second round a Qualifying Offer
that requires Draft Choice Compensation of one second round selection (the “(c)(ii) Upgraded Tender”), the
Prior Club shall only be eligible to receive Draft Choice Compensation of one third round selection for any of
its Restricted Free Agents originally selected in the second round of the Draft, unless such Restricted Free​

Agents have each received a Qualifying Offer of at least the amount of the (c)(ii)Upgraded Tender.

Also, you mentioned last year about the 30% decrease rule, but you didn't know if it applied in an uncapped year. Did you ever find an answer to that?

You also discussed whether or not signing bonuses are prorated for contracts signed in an uncapped year. Did you ever find an answer on that one?

 

[pats1]

I think that the $3,275,000 does include signing bonus proration.
"For purposes of this Article, “Salary” means Paragraph 5 Salary, roster and
reporting bonuses, pro-rata portions of signing bonuses, likely to be earned incentive bonuses, and other payments in compensation for the playing of professional football, as defined in Article XXIV (Guaranteed League-wide Salary, Salary Cap & Minimum Team Salary) below."

"(ii) Any number of such players for a Player Contract that has a first year Salary of no more than $3,275,000 and an annual increase in any future contract years of no more than 30% of the first contract year Salary, not including any amount attributed to any signing bonus."

 

[pats1]

I've fixed the last part of the FAQ to take into account Miguel's post.

 

[Miguel]

"(ii) Any number of such players for a Player Contract that has a first year Salary of no more than $3,275,000 and an annual increase in any future contract years of no more than 30% of the first contract year Salary, not including any amount attributed to any signing bonus."

I think that the "not including any amount attributed to any signing bonus" applies to the 30% increase.

 

[Miguel]

Also, you mentioned last year about the 30% decrease rule, but you didn't know if it applied in an uncapped year. Did you ever find an answer to that?

No.

You also discussed whether or not signing bonuses are prorated for contracts signed in an uncapped year. Did you ever find an answer on that one?

Yes.

Adamjt13 pointed out:
"Article LVI says --


---------------------------


All of the provisions of this Agreement shall be the same in the Final League Year of this Agreement, except
that the following rules shall apply only in that League Year:

Section 1. No Salary Cap: No Salary Cap shall be in effect during the Final League Year.

Section 2. Free Agency If Salary Cap In League Year Prior To Final League Year: In the event that a
Salary Cap is in effect in the League Year prior to the Final League Year: (a) the number of Accrued Seasons
required to be an Unrestricted Free Agent during the Final League Year shall be six or more Accrued Seasons;
and (b) the provisions of Article XIX (Veteran Free Agency), Sections 2-4, shall apply to any player with five
Accrued Seasons in the Final League Year, as if such player had four Accrued Seasons, except that the
Qualifying Offer amounts specified in Article XIX (Veteran Free Agency), Section 2(b)(ii)(1)-(3) shall be
$50,000 greater, and the Qualifying Offer amounts specified in Article XIX Section 2(b)(ii)(4)-(5) shall be
$100,000 greater.

Section 3. Free Agency If No Salary Cap In League Year Prior To Final League Year: In the event that a
Salary Cap is not in effect in the League Year prior to the Final League Year, the number of Accrued Seasons
required to be an Unrestricted Free Agent during the Final League Year shall be five Accrued Seasons.

Section 4. Franchise and Transition Players: As set forth in Article XX (Franchise and Transition Players),
Section 3, each Club shall be permitted to designate one Unrestricted Free Agent as a Transition Player between
February 1 and February 15, in the Final League Year, notwithstanding that Transition Players may not be
designated in the League Years after the 1994 League Year (except as provided in Article XX (Franchise and
Transition Players), Sections 3(a) and 11).

------------

It specifically says that all of the provisions remain the same except that there is no cap, and certain things about free agency are different. In other words, the only thing cap-related that changes from what is outlined in Article XXIV is that there is no limits for a team's salaries. All of the rules are still in effect, when applicable, as described in the CBA."

Therefore, the proration rules still apply.

 

[pats1]

I think that the "not including any amount attributed to any signing bonus" applies to the 30% increase.

Possibly, but it's not clear. It would also seem strange that the initial amount would include signing bonus but the increase wouldn't, because it's the same amount in both cases (unless we're talking about OATSB, but it's unclear if that applies here).

 

[pats1]

No.

Yes.

Adamjt13 pointed out:
"Article LVI says --


---------------------------


All of the provisions of this Agreement shall be the same in the Final League Year of this Agreement, except
that the following rules shall apply only in that League Year:

Section 1. No Salary Cap: No Salary Cap shall be in effect during the Final League Year.

Section 2. Free Agency If Salary Cap In League Year Prior To Final League Year: In the event that a
Salary Cap is in effect in the League Year prior to the Final League Year: (a) the number of Accrued Seasons
required to be an Unrestricted Free Agent during the Final League Year shall be six or more Accrued Seasons;
and (b) the provisions of Article XIX (Veteran Free Agency), Sections 2-4, shall apply to any player with five
Accrued Seasons in the Final League Year, as if such player had four Accrued Seasons, except that the
Qualifying Offer amounts specified in Article XIX (Veteran Free Agency), Section 2(b)(ii)(1)-(3) shall be
$50,000 greater, and the Qualifying Offer amounts specified in Article XIX Section 2(b)(ii)(4)-(5) shall be
$100,000 greater.

Section 3. Free Agency If No Salary Cap In League Year Prior To Final League Year: In the event that a
Salary Cap is not in effect in the League Year prior to the Final League Year, the number of Accrued Seasons
required to be an Unrestricted Free Agent during the Final League Year shall be five Accrued Seasons.

Section 4. Franchise and Transition Players: As set forth in Article XX (Franchise and Transition Players),
Section 3, each Club shall be permitted to designate one Unrestricted Free Agent as a Transition Player between
February 1 and February 15, in the Final League Year, notwithstanding that Transition Players may not be
designated in the League Years after the 1994 League Year (except as provided in Article XX (Franchise and
Transition Players), Sections 3(a) and 11).

------------

It specifically says that all of the provisions remain the same except that there is no cap, and certain things about free agency are different. In other words, the only thing cap-related that changes from what is outlined in Article XXIV is that there is no limits for a team's salaries. All of the rules are still in effect, when applicable, as described in the CBA."

Therefore, the proration rules still apply.

It mentions "in the event that there is no salary cap in the league year prior to the final league year." When would that be the case? Isn't an uncapped year only in the final league year? Or is that just covering for something that could have been legislated in?

 

[pats1]

Bumping. Hopefully this will help answer some questions.

 

[ctpatsfan77]

Possibly, but it's not clear. It would also seem strange that the initial amount would include signing bonus but the increase wouldn't, because it's the same amount in both cases (unless we're talking about OATSB, but it's unclear if that applies here).

For a document as important to sports as the CBA is, it's remarkable just how badly written it is.

There are a fair number of ambiguous wordings (such as the one above), and things just stuck in odd places (for example, one part of the CBA says that an uncapped year should require five years for free agency, but another part some 100 pages later says it's six years).

 

[pats1]

For a document as important to sports as the CBA is, it's remarkable just how badly written it is.

There are a fair number of ambiguous wordings (such as the one above), and things just stuck in odd places (for example, one part of the CBA says that an uncapped year should require five years for free agency, but another part some 100 pages later says it's six years).

You're right, I did notice that.

 

[ctpatsfan77]

AdamJT13 also makes a good point that thread you linked, Miguel. Because of the sheer number of RFAs on the market, there could be a domino effect where teams gain draft picks by losing RFAs and then use those draft picks to sign more RFAs. Like he said, there could be draft picks flying all over the place.

That thought occurred to me, although there is the caveat that a team cannot use a lower draft pick than its original one to make a tender offer. So, for example, if the Pats used their second-rounder to grab a player from, say, the Redskins, the Redskins could not turn around and use that pick in a second-round tender offer; they'd have to use their own. What I think would tend to happen is that the best teams would have to trade some of their picks for RFAs from weaker teams, which would give weaker teams extra picks at the bottom of the round, but for the weaker teams to sign RFAs, they would have to give up their own picks to the best teams.

 

[Joker]

A great thread and required reading IMO....sticky this one for sure

after reading excerpts and looking at the incongruities within this document, I get the distinct impression that this was drawn up rather haphazardly and that neither party on either side truly expects a lockout..in reality.

For something like this to go forward, it would not mean killing the golden goose but in effect ,obliterating it ...feathers, beak,wings and eggs torched to ashes.

The Bonzo Dog Band once wrote...
Can blue men sing the whites..
or are they hypocrites...
to sing the blues..

to make a slight adjustment..
will rich men sing the blues..
when it comes to paying dues..
to make things right..

 

[Miguel]

I would add this:
"In League Years for which no Salary Cap is in effect, 85% of any amount contracted by a Team to be paid from the Team’s Rookie Allocation to a Rookie, but not actually paid by the Team to that player, either as a rookie, or as a re-signed first year player or practice squad player, which amount was not paid because that player was released, will be distributed to all rookies on such Team promptly after the end of the season on a pro rata basis based upon the number of downs played."

 

[upstater1]

For a document as important to sports as the CBA is, it's remarkable just how badly written it is.

There are a fair number of ambiguous wordings (such as the one above), and things just stuck in odd places (for example, one part of the CBA says that an uncapped year should require five years for free agency, but another part some 100 pages later says it's six years).

To this day, I still contend that you can read the rule on videotaping the way Belichick says he read it. The memo was less ambiguous but that's a whole other kettle. And Goodell outright called Belichick a liar for reading it the way he did.

 

[pats1]

I would add this:
"In League Years for which no Salary Cap is in effect, 85% of any amount contracted by a Team to be paid from the Team’s Rookie Allocation to a Rookie, but not actually paid by the Team to that player, either as a rookie, or as a re-signed first year player or practice squad player, which amount was not paid because that player was released, will be distributed to all rookies on such Team promptly after the end of the season on a pro rata basis based upon the number of downs played."

Wouldn't that be the performance-based pay system, sort of? It would be after the season so it wouldn't have any "cap" impact.

 

[makoute]

How possible is it that:

1) BB knew the 2009 team wasn't capable of making/winning the SB; and
2) Didn't adequately prepare for the Ravens in order to avoid becoming subject to the final eight rule?

Then why make the playoffs? Play for the draft pick.