Cap question

[FoxWhiskey]

I have a question.

Every player contract have 2 parts. Guaranteed money and non-guaranteed money.

What happened with the non-guaranteed money, which will not be paid, due the lack of performance or injury.

Is this owners profit? Have this money any influence on future caps?

 

[ctpatsfan77]

I have a question.

Every player contract have 2 parts. Guaranteed money and non-guaranteed money.

What happened with the non-guaranteed money, which will not be paid, due the lack of performance or injury.

Is this owners profit? Have this money any influence on future caps?

It becomes available for use on other players, and teams can carry over unused cap space from one year into the next.

Some owners are notorious for spending as little as the NFL requires, while some (e.g., the Patriots) use the vast majority of cap dollars they are allotted. So, for example, the $1 million or so the Pats got from Kelly, Anderson, and Smith will go to fund other contracts (whether the practice squad, an extension for Devin McCourty, etc.).

 

[NE-VT]

It becomes available for use on other players, and teams can carry over unused cap space from one year into the next.

Some owners are notorious for spending as little as the NFL requires, while some (e.g., the Patriots) use the vast majority of cap dollars they are allotted. So, for example, the $1 million or so the Pats got from Kelly, Anderson, and Smith will go to fund other contracts (whether the practice squad, an extension for Devin McCourty, etc.).

Which owners are notorious for spending as little as they can?

 

[ctpatsfan77]

Which owners are notorious for spending as little as they can?

I want to say the Chiefs off the top of my head. In any case, the NFL now requires a certain minimum amount of spending.

 

[chasa]

Tampa bay spends as little as possible. they had what 70 million in cap space?

 

[Va_Pats_Fan]

I want to say the Chiefs off the top of my head. In any case, the NFL now requires a certain minimum amount of spending.

I think that's enforced as a league average spending, and not on any one team?

 

[FoxWhiskey]

It becomes available for use on other players, and teams can carry over unused cap space from one year into the next.

Really? I know, last year, with all of the replacements of the injuries, we have a cap space near by 6 million.

If i look at New England Patriots Salary Cap | Over the Cap we have finally, after all, in 2013 a cap space of 16 million.

Now in 2014 we have a cap of 139 million ( base is 133). There is a whole of 10 million?

 

[Miguel]

The Patriots ended the 2013 League Year with 4,024,801 in cap space. They rolled over $4,106,801 because they were given a $82,000 credit for AH's 2013 workout bonus. Please note that the Pats are carrying $32,800 (40% of the $82,000) as a charge on the 2014 cap since AH filed a grievance about it.

 

[ctpatsfan77]

Really? I know, last year, with all of the replacements of the injuries, we have a capspace near by 6millions.

If i look at http://overthecap.com/salary-cap/new-england-patriots/ we have finally, after all, in 2013 a capspace of 16 millions.

Now in 2014 we have a cap of 139 millions( base is 133). There is a whole of 10millions?

No, this isn't one of those "where did the 'missing' dollar go?" mysteries.

The extra space from 2013 was carried into 2014, where a good chunk of it was obliterated by A***n H*******z. Any extra money left at the end of this year will be pushed into 2015.

 

[jmt57]

I want to say the Chiefs off the top of my head. In any case, the NFL now requires a certain minimum amount of spending.

I think that's enforced as a league average spending, and not on any one team?

There is a league-average minimum, but there is also a minimum for each team.

The team minimum does not apply to an individual season, but to a total over two four-year periods.

A) For each of the following four-League Year periods, 201 3-201 6 and 2017-2020, there shall be a guaranteed Minimum Team Cash Spending of 89% of the Salary Caps for such periods (e.g., if the Salary Caps for the 2013-1 6 and 2017-2020 are$100, 120, 1 30, and 1 50 million, respectively, each Club shall have a Minimum Team Cash Spending for that period of $445 million (89% of $500 million)).

B) Any shortfall in the Minimum Team Cash Spending at the end of a League Year in which it is applicable (i.e., the 2016 and 2020 League Years) shall be paid,on or before the next September 15, by the Team having such shortfall, directly to the players who were on such a Team's roster at any time during the applicable seasons, pursuant to the reasonable allocation instructions of the NFLPA.​

 

[Urgent]

For the accountants in the room, the salary cap is "accrual accounting," not "cash accounting."

That is, accounting for payments is based on mathematical accruals over time, not the exact cash that goes out in any given year. Thus, while the cap is a static number with dynamic adjustments, the amount accrued in any given year doesn't have to be exactly what that adjusted cap is.

You can spend less, within limits under the CBA, or more than the actual cap. As Miguel noted, amounts not accrued in one year can be carried over to the next year. Thus, if the Patriots end one year $5mm under the cap, they have the ability to spend $5mm over the baseline cap the next year.

Team profitability is impacted by how much teams spend on players, and every other expense. The salary cap is in fact related to total league revenues, and is set at a bit over 50% or so of league revenues. Thus the average team has another $130mm or so for all other expenses and profits. If you have an older, cheaper stadium, or fewer scouts, or serve less-costly food during training camp and so forth, you can grow profits in the short term.

Anyone who is really fascinated with NFL accounting can do a couple things. One is spend a lot of time on Miguel's webpage. Another is download and read the Green Bay Packers annual report, since they have shareholders.