Kansas City's Cap Status

[bunzoburns]

According to the Kansas City Star, the Chiefs are currently $8 million under the cap. With a rookie pool of approximately $3.5 million, they are left with $4.5 million to sign Ty and keep money left for contingency purposes.

I am not a cap guy but can someone explain how they can afford to sign Ty? Even if they find a way to reach a deal with a creative contract, it seems like they might handcuff themselves unless they can restructure some contracts.... Maybe an incentive latent contract would work if they have enough cap room for next year but I thought Ty was holding out for guaranteed money?

 

[Remix 6]

by paying little early and then more later?

i know some high profile players get deals like

$800,000
$950,000
$1.2 million
and so on

you gotta see how their cap is adjusted to determine that

 

[5 Rings for Brady!!]

If I were a betting man, I would say that Ty Law is more likely to end up in NE and that his little flirt with Kansas City is the last bachelor's night out on the town. I think Kansas will not make an offer that NE won't be able to match.

 

[bunzoburns]

What are the chances of Herm Edwards giving Ty a lap dance?

 

[5 Rings for Brady!!]

99%. Lol. :d

 

[AdamJT13]

According to the Kansas City Star, the Chiefs are currently $8 million under the cap. With a rookie pool of approximately $3.5 million, they are left with $4.5 million

That's not how it works. Because of the Rule of 51, the reduction in their cap room for each rookie they sign is at least $275,000 less than the player's cap hit -- and possibly more for the rookies who qualify for their Top 51. With seven draft picks to sign and a rookie pool of $3,394,243, their draft picks will reduce their cap room by no more than $1,469,243 -- and almost certainly less, since several of them should make the Top 51. That'll leave them with at least $6.5 million of cap room, if they're $8 million under right now.

 

[Chevagus]

According to the Kansas City Star, the Chiefs are currently $8 million under the cap. With a rookie pool of approximately $3.5 million, they are left with $4.5 million to sign Ty and keep money left for contingency purposes.

I am not a cap guy but can someone explain how they can afford to sign Ty? Even if they find a way to reach a deal with a creative contract, it seems like they might handcuff themselves unless they can restructure some contracts.... Maybe an incentive latent contract would work if they have enough cap room for next year but I thought Ty was holding out for guaranteed money?

I think they can afford it by offering a larger signing bonus with the idea that they can reduce the yearly salary. If they sign him to a longer deal, say 4 years or so, though he'll never finish it they can pro-rate the bonus over the length of the contract. They would take the big cap hit in the year they decide to cut him. Which, in all honesty, is probably after his second or possibly his third year.

 

[bunzoburns]

Thanks Adam. So when they say the rookie pool is $3.4 mil, it's the cash received by the players, not the cap hit? Kind of like cash vs. accrual accounting....

 

[AdamJT13]

Thanks Adam. So when they say the rookie pool is $3.4 mil, it's the cash received by the players, not the cap hit? Kind of like cash vs. accrual accounting....

No, the $3.4 million is their combined cap numbers for this season. But in the offseason (before the final cutdown), the only base salaries that count against the cap are those for the players with the 51 highest cap numbers on the team. So, for example, if you sign a draft pick to a three-year contract with a $60,000 signing bonus and a base salary this season of $275,000, his cap number for this year is $295,000. But if he's not in the Top 51 (and he wouldn't be for most teams), then only his $20,000 signing bonus proration counts against the cap in the offseason. So he'd use up $295,000 of the team's rookie pool but only $20,000 of the team's available cap room.