PatsFans.com Menu
PatsFans.com - The Hub For New England Patriots Fans

2019 NE CAP SPACE


Status
Not open for further replies.
Josh Rosen
So...if the NEP truly believe Rosen has the potential to be a Top 5, Top 10 starter for them.....he is the deal of the century.

Yeah, from a pure financial standpoint. But from a team building standpoint, does it work to bring a guy here who this time last year was a top QB draft pick and the designated savior for a team, to now hold a clipboard for the GOAT for three + years? And then have him become a free agent, just when Brady's retiring?

In that scenario, you have to get him on a new contract after he's only played garbage time for three+ years.

These guys are hyper competitive, by nature. Something creative would have to be done to make this work. And, as Brady's Dad has said, his ending "is going to be ugly", meaning he won't be the first person to recognize when he's past his time.

I'd love for that to work, but just don't get it.
 
So they voluntarily hand out bonuses?

Apparently, when coaching decisions cause a player to narrowly miss a bonus tied to playing time.
 
They sure aren't concerned about a 'cap tightness' then.

This costs them a few hundred thousand a year - less than 1% of player payroll. I'm sure they plan for it when managing the cap every year. Probably isn't a reflection of what they are and aren't concerned with regarding signing new players.
 
They sure aren't concerned about a 'cap tightness' then.
Like in the past, they really didn’t have much of a choice. It would have been a **** move to have withheld bonuses over a handful of snaps.

You may not agree that they are closer to the cap than in most years and that’s your opinion, but paying out those roster bonuses doesn’t have anything to do with it. They were going to have to do that anyway.
 
Yes, Kraft pays.

All frontload money (signing bonus, fully gtd base salary) they have to deposit somewhere when the contract is signed to gtd that the owner have this kind of cash, real cash i mean. That's the gtd portion of the contract and if a player dies, familly can collect. Other bonuses are paid when earned.

During the postseason they are paid by the league on a per game basis

One example is: Raiders wanted Bell but the owner did not have the cash to bring him.

Salary is paid weekly for the 17 weeks of the regular season (bye week too). The salary paid these weeks is just the base salary in their contract.

So if the Raiders owner couldn't afford to bring him in how have they managed it? I don't understand how the league help them out when the owners are the ones that pay the wages etc.

I'm sure NEP make a lot of money each year so Kraft can afford to spend the money on wages. But I struggle with the idea of Buffalo making enough money for the organization to pay the wages so would make sense for them to have a lower salary??

I'm from London England so I'm used to clubs paying their own way.
 
All these bonuses/pay raises being handed out, where is Edelman's?
 
So if the Raiders owner couldn't afford to bring him in how have they managed it? I don't understand how the league help them out when the owners are the ones that pay the wages etc.

I'm sure NEP make a lot of money each year so Kraft can afford to spend the money on wages. But I struggle with the idea of Buffalo making enough money for the organization to pay the wages so would make sense for them to have a lower salary??

I'm from London England so I'm used to clubs paying their own way.

NFL clubs pay their own way. However, a team cannot be over the salary cap even if it has all the money in the world in the bank. And on the flip side, a team has to have enough money in the bank to satisfy the escrow requirements on signing bonuses and contract guarantees. If they don't, they can't sign the player.

Unlike the NBA the salary cap is fairly hard and it applies to the team as a whole. There are no player-related salary "slots" that you have to fit things into. All that matters is that the team as a whole is under the cap.

The actual dollars paid to a player and the player's salary cap charge are two separate things (they are related, of course). Two very simple examples:
1) A player is paid a straight salary of $3,000,000 per year for 4 years ($12,000,000 total value). He will be paid $3,000,000 each year and will have a cap charge of $3,000,000 each year.
2) A player is paid a salary of $1,000,000 per year for 4 years and is given a $8,000,000 signing bonus ($12,000,000 total value). He will be paid $9,000,000 in year 1 and $1,000,000 in years 2-4. However, his cap charge will be $3,000,000 per year because the signing bonus is amortized over the life of the contract.

A relatively common thing that teams ask players to do is to let the team convert salary to signing bonus coupled with extending the contract in order to lower the current year's cap charge at the expense of future years'. So the team will pay out more actual cash in the current year but will reduce the cap charge in the current year, though it will increase the cap charge for the subsequent years of the contract.

Say a player is getting paid $10,000,000 per year with 3 years left to go. That's a $10,000,000 cap charge each year. The team might ask the player to extend the contract by two years, lower the salary to $1,000,000 a year for 5 years and give the player a $25,000,000 signing bonus. Under both contracts the player gets $30,000,000 over the remaining life of the contract. Under the restructured contract the player gets $26,000,000 this year and $1,000,000 in years 2-5. However, for cap purposes the player will count $6,000,000 per year. So the restructure lowered the cap hit from $10,000,000 per year to $6,000,000 per year. But in years 4-5 it increased the cap hit from $0 to $6,000,000.

It can get a lot more complicated than that once incentives are involved. Also, when a player is cut or traded the future amortized cap hit due to signing bonuses or guarantees accelerate into the current year. So players can be literally uncuttable no matter how bad they are because the resulting cap charge would totally screw the team.

Also, though we don't often hear about it, there is a salary floor as well as a salary cap.
 
So if the Raiders owner couldn't afford to bring him in how have they managed it? I don't understand how the league help them out when the owners are the ones that pay the wages etc.

I'm sure NEP make a lot of money each year so Kraft can afford to spend the money on wages. But I struggle with the idea of Buffalo making enough money for the organization to pay the wages so would make sense for them to have a lower salary??

I'm from London England so I'm used to clubs paying their own way.

Just at a high level:

- Television contracts are negotiated by the League. Teams are prohibited from negotiating on their own to broadcast their team’s games except for the preseason. Apparently NFL TV deals paid $8 billion to the league in 2017. That amount is distributed evenly over 32 teams. That’s about 255 million per team. TV accounts for over half of the league’s revenues.

- Actual stadium revenue is split 50% to the home team and 50% to the visiting team. While the teams themselves run things, the NFL generally provides guidance for pricing. The NFL would rather see a few empty seats in some arenas than having one team’s ticket prices being significantly lower than another’s.

- Local team sponsorships and stadium advertising revenue is where one team’s revenues can really differentiate itself from another. The Patriots are a big brand name and can charge a lot to have, say, Shields MRI as a sponsor.

- The stadium situation varies by team. Some teams play rent free depending on the desperation of the local town (think the hick places like Indianapolis who wouldn’t be known for anything if they didn’t have a professional sports franchise). Some teams like the Raiders pay rent. Some teams like the Patriots own their own stadium but have to pay down the debt service. I don’t know if anyone owns a stadium that has no debt. Point is, these amounts vary by team and have a real sway on a team’s cash flow.

Generally everyone has the same salary cap but not every team is in th same cash position. Your original question was about the Raiders and not having enough cash. They are one of the NFL’s poorer franchises despite the name brand, because the Davis’s don’t have any money and they don’t have a sweetheart stadium deal. In fact as of two weeks ago they didn’t even have a place to play in 2019 (that’s since been resolved). Players want large signing bonuses to offset their non-guaranteed contracts. Sounds like the Raiders ran into a cash flow problem and can’t make any further signings involving large cash payouts.
 
@Hammer of Thor I'm pretty sure the gate split is 60/40, not 50/50..

You are of course correct about local sponsorships and stuff staying with the team. Though by contrast I believe revenue from logo'd/licensed merchandise all goes into the "split 32 ways evenly" pot.
 
Why would a player wish to extend their contract for a further two years without getting anymore money out of it?

I know Brady often restructures his deal to benefit the team but that's got to be rare. If the player is going to get $30m over the next 3 years I don't understand why he'd agree to add another 2 years without getting anymore money. I get he'll get a lump sum upfront but still he is effectively working 2 years for freeeeee.
 
Say a player is getting paid $10,000,000 per year with 3 years left to go. That's a $10,000,000 cap charge each year. The team might ask the player to extend the contract by two years, lower the salary to $1,000,000 a year for 5 years and give the player a $25,000,000 signing bonus. Under both contracts the player gets $30,000,000 over the remaining life of the contract. Under the restructured contract the player gets $26,000,000 this year and $1,000,000 in years 2-5. However, for cap purposes the player will count $6,000,000 per year. So the restructure lowered the cap hit from $10,000,000 per year to $6,000,000 per year. But in years 4-5 it increased the cap hit from $0 to $6,000,000.

The signing on bonus is why the Steelers (booooo) are having $21m of Brown's contract on their cap this year, correct?
 
So if the Raiders owner couldn't afford to bring him in how have they managed it? I don't understand how the league help them out when the owners are the ones that pay the wages etc.

I'm sure NEP make a lot of money each year so Kraft can afford to spend the money on wages. But I struggle with the idea of Buffalo making enough money for the organization to pay the wages so would make sense for them to have a lower salary??

I'm from London England so I'm used to clubs paying their own way.

Buffalo Bills revenue 2001-2017 | Statistic
 
The signing on bonus is why the Steelers (booooo) are having $21m of Brown's contract on their cap this year, correct?

Yes. They already paid Brown in cash but the cash impact is spread over the lenght of the contract. If a player is traded or cut the prorated bonus acceleration is in that year (2019)

2019

$12,625,000 base salary

$7,040,000 prorated signing bonus

$2,500,000 roster bonus

$22,165,000 cap number

2020

$11,300,000 base salary

$7,040,000 prorated signing bonus

$18,340,000 cap number

2021

$$12,500,000 base salary

$7,040,000 prorated signing bonus

$19,540,000 cap number

The four scenarios the Steelers have for life after Brown.

$7,040,000 prorated signing bonus x 3 = 21,120,000

21,12M dead money
 
Why would a player wish to extend their contract for a further two years without getting anymore money out of it?

I know Brady often restructures his deal to benefit the team but that's got to be rare. If the player is going to get $30m over the next 3 years I don't understand why he'd agree to add another 2 years without getting anymore money. I get he'll get a lump sum upfront but still he is effectively working 2 years for freeeeee.

Because contracts aren’t fully guaranteed. In my example the player might, for example, be cut after this year and never see the final $20mil of the contract. By extending and converting, even with no additional $, the player guarantees receiving at least $26mil instead of only being sure to get $10mil.
 
Why would a player wish to extend their contract for a further two years without getting anymore money out of it?

I know Brady often restructures his deal to benefit the team but that's got to be rare. If the player is going to get $30m over the next 3 years I don't understand why he'd agree to add another 2 years without getting anymore money. I get he'll get a lump sum upfront but still he is effectively working 2 years for freeeeee.

If it is converted into a signing bonus they will get it up front.

Lets use this example:

2019

$12,000,000 base salary < ------- CONVERT ALL THIS MONEY TO SIGNING BONUS

$7,040,000 prorated signing bonus

$2,500,000 roster bonus

$22,165,000 cap number - $12,000,000

2020

$11,300,000 base salary

$7,040,000 prorated signing bonus + 6,000,000

$18,340,000 cap number + 6,000,000

2021

$$12,500,000 base salary

$7,040,000 prorated signing bonus + 6,000,000

$19,540,000 cap number + 6,000,000

So if they release him in 2019 or trade him he will get another $12,000,000
 
Last edited:

so, we have just under $2M left.

This might get us our kicker, with a $1.9M cap hit. Guarantees, options and salaries beyond 2019 wouldn't affect the 2019 cap; but it would affect his AAV, and future caps.

3.6M bonus over 4 years
$1M 2019 Salary
TBD 2020-2022 salaries
$1.9M 2019 cap hit
 
so, we have just under $2M left.

This might get us our kicker, with a $1.9M cap hit. Guarantees, options and salaries beyond 2019 wouldn't affect the 2019 cap; but it would affect his AAV, and future caps.

3.6M bonus over 4 years
$1M 2019 Salary
TBD 2020-2022 salaries
$1.9M 2019 cap hit
About $2.5 million right now. He knocked a $695k salary out of the top 51.
 
Status
Not open for further replies.


TRANSCRIPT: Eliot Wolf’s Pre-Draft Press Conference 4/18/24
Thursday Patriots Notebook 4/18: News and Notes
Wednesday Patriots Notebook 4/17: News and Notes
Tuesday Patriots Notebook 4/16: News and Notes
Monday Patriots Notebook 4/15: News and Notes
Patriots News 4-14, Mock Draft 3.0, Gilmore, Law Rally For Bill 
Potential Patriot: Boston Globe’s Price Talks to Georgia WR McConkey
Friday Patriots Notebook 4/12: News and Notes
Not a First Round Pick? Hoge Doubles Down on Maye
Thursday Patriots Notebook 4/11: News and Notes
Back
Top