RugbyMuffin
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WARNING THIS POST AND THE POST BELOW ARE WRONG, THESE NUMBERS ARE NOT CORRECT.
OK, I am looking for help here. All input is welcome.
A few weeks back I tried to figure out how the numbers are figured out on: cap savings, dead money, and how bonuses and salary work together to give those numbers.
There is a lot of difference places that have explanations but they are not the clearest explanations.
So below is how I think it goes, I am looking to be corrected if I am wrong, BTW.
First some terms:
Salary:
Well, it is what it is. The salary is what the player gets paid, just like our paycheck they have all kinds of union dues, taxes, etc., etc coming out of it, but this is there pay for playing football. Most NFL contracts are backloaded. Meaning a 3 million dollar salary that is paid over 3 years does NOT come out to 1 million dollars a year. The owners do this so the contracts are more cap friendly. The maximum a contract can differ from year to year is 30%. So a normal 3 million dollar salary number in a contract over 3 years would look like the following:
1 - $751,879.70
2 - $977,443.60
3 - $1,270,676.60
Again, this is for the sake of explanation. The organizations do not HAVE TO backload the salary portion of the contract if they don't want, but they usually do. The salary for a contract is NOT guaranteed.
Signing Bonus:
A signing bonus, is a bonus paid to the player upon signing his contact. He gets it all up front, in the pocket. Even though the money has already been paid to the player once he signed the contract, the signing bonus is prorated for the life of the contract. Going back to our example, lets say that 3yr, 3million dollar contract has a 2.7 million dollar signing bonus. Then the player gets plaid 2.7 million dollars at the moment he signs the contract, and the signing bonus is prorated over the contract like so:
1 - $900,000.00
2 - $900,000.00
3 - $900,000.00
Roster Bonus:
It is what it says it is. This bonus is paid to the player, if and only if, that player is on the team's roster on the agreed upon date. These dates are commonly March 1st, and June 1st (Rod Graves' favorite day of the year), but again they don't HAVE to be on those dates, it matters on what the contract says. Going back to our contract that we are using for an example. The player has in his contract he receives a 500k roster bonus each year he is on the roster. The date agreed upon is March 5th. If the player is on the roster on March 5th he gets his 500k roster bonus, if he is cut after March 5th, i.e. March 6th, he still keeps his roster bonus, and the bonus goes against the cap for that year. If the player is cut before March 5th, i.e. March 4th he doesn't get any of the roster bonus, and the bonus does not go against the cap.
Workout Bonus:
At it's basic core, workout bonuses are what they say they are. If a player comes in for a set percentage of conditioning programs in the offseason they will receive a workout bonus. If an organization doesn't want to pay a player a workout bonus, there safest route is to cut the player before April 15th. Like the roster bonus, if the player is cut before he has the chance to partake in the offseason conditioning programs then he doesn't get paid the bonus, and it does not go towards the cap. If he is at the offseason coniditioning programs then he gets paid and it goes toward the cap.
Other Bonuses & Incentives:
OK, someone else can get into these. They are all over the place. The Incentives are pretty easy. You reach the goals in your contract and you get paid more. I.E. Our fictional player above gets an extra $500,000.00 if he catches 75 passes. He catches 82 passes the season before, and he gets the bonus.
Dead Money:
This is the salary cap charge for a player no longer on the team's roster, *under the original contract (See Levi Brown). If an organization cuts, trades, or releases a player, they will have to take on the guaranteed money in the contract toward their cap. So, guaranteed bonuses, like signing bonuses or incentives earned in the previous year will be charged to the organization's cap. The non-guaranteed money, salary, or bonuses not yet earned will not be charged to the cap. The signing bonus, and any bonus that is set up like a signing bonus that I don't know of, is setup so that at the time of the player being released, cut, or traded that entire bonus "left" on the contract goes towards that year's cap, *unless after June 1st. Let's go back to our contract. The following is the dead money that the contact would have for cutting the player at different times of the year, and at different years.
*June 1st, and signing bonuses:
June 1st is significant because if you cut a player after this date (and there are exception to this rule) only that year's bonus is counted towards that year's cap, the rest of the bonus for the contract is put towards the following year's cap number.
Cap Money Saved:
This is the money saved by an organization when cutting, trading, or releasing a player. As read at the end of the "Dead Money" explanation, salary and bonuses not yet earned are what an organization saves in cutting, trading, or releasing a player
Player's Cap Figures - How the Contract is paid out:
Now that we have the terms down, let's take a look at our player's contract.....but this is a little stale. Let's name our player. Jacque Strap, is a a UDFA that came on as a reciever for the Cardinals and just signed a 3 year contract for 3 million dollars, 2.7 million dollar signing bonus, a roster bonus of 500k a year, a workout bonus of 250k a year, and an incentive in years 2 and 3 of the contract for 500k if he catches 75 or more passes in the previous year.
Year One:
Salary: $751,879.70
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $0
His cap figure for that year will be: $2,401,879.70
Year Two: - caught 82 passes.
Salary: $977,443.60
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $500,000
His cap figure for that year will be: $3,127,443.60
Year Three: - caught 82 passes.
Salary: $1,270,676.61
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $500,000
His cap figure for that year will be: $3,420,676.61
So, Jacque initially signed a near 9 million dollar contract. Meaning when this player initially signed, it said on SI.com that Jacque Strap was signed by the Cardinals for 9 million dollars.
Cutting a Player: Cap Savings, and Dead Money
OK, now what happens if the Cardinals made a big mistake (shocker) and realized they signed a player they do not want. We are going to go through each year, at different periods of the year and see what happens when Jacque is released:
Year 1 - cut right after signing contract:
Jacque signs the contract on March 1st 2015, he is going to be paid his signing bonus, and his roster bonus. ***Four days later it is found that Jacque Strap is selling babies on the black market, and the Cardinals want to cut him.
*** There are laws that allow a team to get all there money back in this instance but for the sake of an example we will go along with my story ***
Year One - if cut on March 5th
Salary: $751,879.70
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $0
[$751,879.70 + $250,000] - [$2,700,000* + $500,000] = -$2,198,120.30
*Remember the signing bonus dead money is $900k x 3yrs
Cap Savings: $1,001,879.70
Dead Money: $3,200,000.00
Thus cutting Jacque Strap on March 5th 2015 will cost the Cardinals $2,198,120.30 towards the 2015 salary cap. Meaning the Cardinals are going to lost money from what is paid to the player via bonuses, AND lose cap room.
Year One - if cut after earning workout bonus[/B]
Our player has been working out with the team, and cursing out John Lott, and spitting on players he doesn't like. So, he earned his workout bonus, but he has to go.
Year One - after earned workout bonus
Salary: $751,879.70
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $0
[$751,879.70] - [$2,700,000 + $500,000 + $250,000] = -$2,698,120.30
Cap Savings: $751,879.70
Dead Money: $3,450,000.00
Thus cutting Jacque Strap after he earned his workout bonus will cost the Cardinals $2,698,120.30 towards the 2015 salary cap. Meaning the Cardinals are going to lost money from what is paid to the player via bonuses, AND lose cap room.
Year One - after June 1st[/B]
Our player has been through all the offseason workouts. The Cardinals see he has lost his motivation, looked horrible in all the camps and workouts, and rumor comes out he likes the Purple Drank. It is time for him to go, but they are cost to the cap this year, and have some room next year. They wait till after June 1st
Year One - after June 1st
Salary: $751,879.70
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $0
[$751,879.70] - [$900,000* + $500,000 + $250,000] = -$1,649,248.20
Cap Savings: $751,879.70
Dead Money for 2015: $1,650,000.00
Dead Money for 2016: $1,800,000.00
Thus cutting Jacque Strap on March 5th 2015 will cost the Cardinals $898,120.30 towards the 2015 salary cap, but will also cost the Cardinals $1,800,000.00 ($900,000 x 2yrs) against the cap in 2016.Meaning the Cardinals are going to lost money from what is paid to the player via bonuses, AND lose cap room.
Year 2:
OK. At this point all the same rules apply in year two except, in 2015 Jacque Stap catches 82 passes. He has earned his incentive bonus for 2016, so that is guaranteed.
Year Two - Cut before paid Roster bonus
Salary: $977,443.60
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $250,000
[$977,443.60 + $250,000 + $500,000] - [$1,800,000* + $250,000] = -$322,556.40
*Remember the signing bonus dead money is $900k x 2yrs
Cap Savings: $1,727,443.60
Dead Money: $2,050,000.00
Year Two - Cut before paid Workout bonus
Salary: $977,443.60
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $250,000
[$977,443.60 + $250,000] - [$1,800,000* + $250,000 + $500,000] = -$1,322,556.40
Cap Savings: $1,227,443.60
Dead Money: $2,550,000.00
Year Two - Cut before June 1st
Salary: $977,443.60
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $250,000
[$977,443.60] - [$1,800,000* + $250,000 + $500,000 + $250,000] = -$1,822,556.40
Cap Savings: $977,443.60
Dead Money: $2,800,000.00
Year Two - Cut after June 1st
Salary: $977,443.60
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $250,000
[$977,443.60] - [$900,000* + $250,000 + $500,000 + $250,000] = -$922,556.40
Cap Savings: $977,443.60
Dead Money 2016: $1,900,000.00
Dead Money 2017: $900,000.00
Year 3:
OK. At this point all the same rules apply in year two, in 2016 Jacque Stap catches 82 passes. He has earned his incentive bonus for 2017, so that is guaranteed. We should now see some cap savings from cutting this player. His salary has increased to where it is great then his guaranteed bonuses.
Year Three - Cut before paid Roster bonus
Salary: $1,270,676.60
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $250,000
[$1,270,676.60 + $250,000 + $500,000] - [$900,000* + $250,000] = $870,676.60
*Remember the signing bonus dead money is $900k x 1yrs
Cap Savings: $2,020,676.60
Dead Money: $1,150,000.00
So in the 3rd year of this players contract, if the Cardinals cut the player before they have to pay his roster bonus, they will clear up $870,676.60 against the 2017 cap. To be clear, by cutting this player at this point and time the Cardinals get $870,676.60 back to use towards that year's cap.
Year Three - Cut before paid Workout bonus
Salary: $1,270,676.60
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $250,000
[$1,270,676.60 + $250,000] - [$900,000* + $250,000 + $500,000] = -$129,323.40
Cap Savings: $1,520,676.60
Dead Money: $1,650,000.00
So in the 3rd year of this players contract, if the Cardinals cut the player before they have to pay his work out bonus, it will cost the Cardinals $129,323.40 against the cap. That is because the Cardinals paid the player his roster bonus of 500k, and it now counts towards the cap for that year if he is cut. The point being, if the Cardinals wanted to cut this player, they should have decided it BEFORE giving him his roster bonus.
Year Three - Cut before June 1st
*** Because this is the last year of the player's contract, it makes no difference cutting him before or after June 1st. There is no signing bonus that is slated for 2018 because the player's contract will be up in 2018. So, to be clear, the bonus carry over to 2018 is $0. Thus what is shown below applies to if the player is cut any time after receiving his roster bonus. June 1st doesn't matter.
Salary: $1,270,676.60
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $250,000
[$1,270,676.60] - [$900,000* + $250,000 + $500,000 + $250,000] = -$629,323.40
Cap Savings: $1,270,676.60
Dead Money: $1,900,000.00
Thus it costs the Cardinals $629,323.40 against the cap to cut the player after he receives his workout, and any time after that.
Well, that is it. That is how I see this craziness work out math wise. I will follow up this post to see how Stewart Bradley, and William Gay freed up about 7 million dollars by cutting them.
For some other cool tidbits about reworking contracts see the link below:
http://www.bloggingtheboys.com/2013...ion-amortization-cap-hits-dead-money-and-more
--------------------------------------------------------------------------
Souces:
- http://miamiherald.typepad.com/dolp...cost-and-savings-of-cutting-some-players.html
- http://www.askthecommish.com/SalaryCap/faq.aspx
- http://www.ehow.com/how_2077638_know-nfl-salary-cap-rules.html
- http://insidefootball.com/blog/archives/2366
- http://www.bloggingtheboys.com/2013...ion-amortization-cap-hits-dead-money-and-more
OK, I am looking for help here. All input is welcome.
A few weeks back I tried to figure out how the numbers are figured out on: cap savings, dead money, and how bonuses and salary work together to give those numbers.
There is a lot of difference places that have explanations but they are not the clearest explanations.
So below is how I think it goes, I am looking to be corrected if I am wrong, BTW.
First some terms:
Salary:
Well, it is what it is. The salary is what the player gets paid, just like our paycheck they have all kinds of union dues, taxes, etc., etc coming out of it, but this is there pay for playing football. Most NFL contracts are backloaded. Meaning a 3 million dollar salary that is paid over 3 years does NOT come out to 1 million dollars a year. The owners do this so the contracts are more cap friendly. The maximum a contract can differ from year to year is 30%. So a normal 3 million dollar salary number in a contract over 3 years would look like the following:
1 - $751,879.70
2 - $977,443.60
3 - $1,270,676.60
Again, this is for the sake of explanation. The organizations do not HAVE TO backload the salary portion of the contract if they don't want, but they usually do. The salary for a contract is NOT guaranteed.
Signing Bonus:
A signing bonus, is a bonus paid to the player upon signing his contact. He gets it all up front, in the pocket. Even though the money has already been paid to the player once he signed the contract, the signing bonus is prorated for the life of the contract. Going back to our example, lets say that 3yr, 3million dollar contract has a 2.7 million dollar signing bonus. Then the player gets plaid 2.7 million dollars at the moment he signs the contract, and the signing bonus is prorated over the contract like so:
1 - $900,000.00
2 - $900,000.00
3 - $900,000.00
Roster Bonus:
It is what it says it is. This bonus is paid to the player, if and only if, that player is on the team's roster on the agreed upon date. These dates are commonly March 1st, and June 1st (Rod Graves' favorite day of the year), but again they don't HAVE to be on those dates, it matters on what the contract says. Going back to our contract that we are using for an example. The player has in his contract he receives a 500k roster bonus each year he is on the roster. The date agreed upon is March 5th. If the player is on the roster on March 5th he gets his 500k roster bonus, if he is cut after March 5th, i.e. March 6th, he still keeps his roster bonus, and the bonus goes against the cap for that year. If the player is cut before March 5th, i.e. March 4th he doesn't get any of the roster bonus, and the bonus does not go against the cap.
Workout Bonus:
At it's basic core, workout bonuses are what they say they are. If a player comes in for a set percentage of conditioning programs in the offseason they will receive a workout bonus. If an organization doesn't want to pay a player a workout bonus, there safest route is to cut the player before April 15th. Like the roster bonus, if the player is cut before he has the chance to partake in the offseason conditioning programs then he doesn't get paid the bonus, and it does not go towards the cap. If he is at the offseason coniditioning programs then he gets paid and it goes toward the cap.
Other Bonuses & Incentives:
OK, someone else can get into these. They are all over the place. The Incentives are pretty easy. You reach the goals in your contract and you get paid more. I.E. Our fictional player above gets an extra $500,000.00 if he catches 75 passes. He catches 82 passes the season before, and he gets the bonus.
Dead Money:
This is the salary cap charge for a player no longer on the team's roster, *under the original contract (See Levi Brown). If an organization cuts, trades, or releases a player, they will have to take on the guaranteed money in the contract toward their cap. So, guaranteed bonuses, like signing bonuses or incentives earned in the previous year will be charged to the organization's cap. The non-guaranteed money, salary, or bonuses not yet earned will not be charged to the cap. The signing bonus, and any bonus that is set up like a signing bonus that I don't know of, is setup so that at the time of the player being released, cut, or traded that entire bonus "left" on the contract goes towards that year's cap, *unless after June 1st. Let's go back to our contract. The following is the dead money that the contact would have for cutting the player at different times of the year, and at different years.
*June 1st, and signing bonuses:
June 1st is significant because if you cut a player after this date (and there are exception to this rule) only that year's bonus is counted towards that year's cap, the rest of the bonus for the contract is put towards the following year's cap number.
Cap Money Saved:
This is the money saved by an organization when cutting, trading, or releasing a player. As read at the end of the "Dead Money" explanation, salary and bonuses not yet earned are what an organization saves in cutting, trading, or releasing a player
Player's Cap Figures - How the Contract is paid out:
Now that we have the terms down, let's take a look at our player's contract.....but this is a little stale. Let's name our player. Jacque Strap, is a a UDFA that came on as a reciever for the Cardinals and just signed a 3 year contract for 3 million dollars, 2.7 million dollar signing bonus, a roster bonus of 500k a year, a workout bonus of 250k a year, and an incentive in years 2 and 3 of the contract for 500k if he catches 75 or more passes in the previous year.
Year One:
Salary: $751,879.70
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $0
His cap figure for that year will be: $2,401,879.70
Year Two: - caught 82 passes.
Salary: $977,443.60
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $500,000
His cap figure for that year will be: $3,127,443.60
Year Three: - caught 82 passes.
Salary: $1,270,676.61
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $500,000
His cap figure for that year will be: $3,420,676.61
So, Jacque initially signed a near 9 million dollar contract. Meaning when this player initially signed, it said on SI.com that Jacque Strap was signed by the Cardinals for 9 million dollars.
Cutting a Player: Cap Savings, and Dead Money
OK, now what happens if the Cardinals made a big mistake (shocker) and realized they signed a player they do not want. We are going to go through each year, at different periods of the year and see what happens when Jacque is released:
Year 1 - cut right after signing contract:
Jacque signs the contract on March 1st 2015, he is going to be paid his signing bonus, and his roster bonus. ***Four days later it is found that Jacque Strap is selling babies on the black market, and the Cardinals want to cut him.
*** There are laws that allow a team to get all there money back in this instance but for the sake of an example we will go along with my story ***
Year One - if cut on March 5th
Salary: $751,879.70
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $0
[$751,879.70 + $250,000] - [$2,700,000* + $500,000] = -$2,198,120.30
*Remember the signing bonus dead money is $900k x 3yrs
Cap Savings: $1,001,879.70
Dead Money: $3,200,000.00
Thus cutting Jacque Strap on March 5th 2015 will cost the Cardinals $2,198,120.30 towards the 2015 salary cap. Meaning the Cardinals are going to lost money from what is paid to the player via bonuses, AND lose cap room.
Year One - if cut after earning workout bonus[/B]
Our player has been working out with the team, and cursing out John Lott, and spitting on players he doesn't like. So, he earned his workout bonus, but he has to go.
Year One - after earned workout bonus
Salary: $751,879.70
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $0
[$751,879.70] - [$2,700,000 + $500,000 + $250,000] = -$2,698,120.30
Cap Savings: $751,879.70
Dead Money: $3,450,000.00
Thus cutting Jacque Strap after he earned his workout bonus will cost the Cardinals $2,698,120.30 towards the 2015 salary cap. Meaning the Cardinals are going to lost money from what is paid to the player via bonuses, AND lose cap room.
Year One - after June 1st[/B]
Our player has been through all the offseason workouts. The Cardinals see he has lost his motivation, looked horrible in all the camps and workouts, and rumor comes out he likes the Purple Drank. It is time for him to go, but they are cost to the cap this year, and have some room next year. They wait till after June 1st
Year One - after June 1st
Salary: $751,879.70
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $0
[$751,879.70] - [$900,000* + $500,000 + $250,000] = -$1,649,248.20
Cap Savings: $751,879.70
Dead Money for 2015: $1,650,000.00
Dead Money for 2016: $1,800,000.00
Thus cutting Jacque Strap on March 5th 2015 will cost the Cardinals $898,120.30 towards the 2015 salary cap, but will also cost the Cardinals $1,800,000.00 ($900,000 x 2yrs) against the cap in 2016.Meaning the Cardinals are going to lost money from what is paid to the player via bonuses, AND lose cap room.
Year 2:
OK. At this point all the same rules apply in year two except, in 2015 Jacque Stap catches 82 passes. He has earned his incentive bonus for 2016, so that is guaranteed.
Year Two - Cut before paid Roster bonus
Salary: $977,443.60
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $250,000
[$977,443.60 + $250,000 + $500,000] - [$1,800,000* + $250,000] = -$322,556.40
*Remember the signing bonus dead money is $900k x 2yrs
Cap Savings: $1,727,443.60
Dead Money: $2,050,000.00
Year Two - Cut before paid Workout bonus
Salary: $977,443.60
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $250,000
[$977,443.60 + $250,000] - [$1,800,000* + $250,000 + $500,000] = -$1,322,556.40
Cap Savings: $1,227,443.60
Dead Money: $2,550,000.00
Year Two - Cut before June 1st
Salary: $977,443.60
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $250,000
[$977,443.60] - [$1,800,000* + $250,000 + $500,000 + $250,000] = -$1,822,556.40
Cap Savings: $977,443.60
Dead Money: $2,800,000.00
Year Two - Cut after June 1st
Salary: $977,443.60
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $250,000
[$977,443.60] - [$900,000* + $250,000 + $500,000 + $250,000] = -$922,556.40
Cap Savings: $977,443.60
Dead Money 2016: $1,900,000.00
Dead Money 2017: $900,000.00
Year 3:
OK. At this point all the same rules apply in year two, in 2016 Jacque Stap catches 82 passes. He has earned his incentive bonus for 2017, so that is guaranteed. We should now see some cap savings from cutting this player. His salary has increased to where it is great then his guaranteed bonuses.
Year Three - Cut before paid Roster bonus
Salary: $1,270,676.60
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $250,000
[$1,270,676.60 + $250,000 + $500,000] - [$900,000* + $250,000] = $870,676.60
*Remember the signing bonus dead money is $900k x 1yrs
Cap Savings: $2,020,676.60
Dead Money: $1,150,000.00
So in the 3rd year of this players contract, if the Cardinals cut the player before they have to pay his roster bonus, they will clear up $870,676.60 against the 2017 cap. To be clear, by cutting this player at this point and time the Cardinals get $870,676.60 back to use towards that year's cap.
Year Three - Cut before paid Workout bonus
Salary: $1,270,676.60
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $250,000
[$1,270,676.60 + $250,000] - [$900,000* + $250,000 + $500,000] = -$129,323.40
Cap Savings: $1,520,676.60
Dead Money: $1,650,000.00
So in the 3rd year of this players contract, if the Cardinals cut the player before they have to pay his work out bonus, it will cost the Cardinals $129,323.40 against the cap. That is because the Cardinals paid the player his roster bonus of 500k, and it now counts towards the cap for that year if he is cut. The point being, if the Cardinals wanted to cut this player, they should have decided it BEFORE giving him his roster bonus.
Year Three - Cut before June 1st
*** Because this is the last year of the player's contract, it makes no difference cutting him before or after June 1st. There is no signing bonus that is slated for 2018 because the player's contract will be up in 2018. So, to be clear, the bonus carry over to 2018 is $0. Thus what is shown below applies to if the player is cut any time after receiving his roster bonus. June 1st doesn't matter.
Salary: $1,270,676.60
Signing Bonus: $900,000.00
Roster Bonus: $500,000.00
Workout Bonus: $250,000.00
Incentives: $250,000
[$1,270,676.60] - [$900,000* + $250,000 + $500,000 + $250,000] = -$629,323.40
Cap Savings: $1,270,676.60
Dead Money: $1,900,000.00
Thus it costs the Cardinals $629,323.40 against the cap to cut the player after he receives his workout, and any time after that.
Well, that is it. That is how I see this craziness work out math wise. I will follow up this post to see how Stewart Bradley, and William Gay freed up about 7 million dollars by cutting them.
For some other cool tidbits about reworking contracts see the link below:
http://www.bloggingtheboys.com/2013...ion-amortization-cap-hits-dead-money-and-more
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Souces:
- http://miamiherald.typepad.com/dolp...cost-and-savings-of-cutting-some-players.html
- http://www.askthecommish.com/SalaryCap/faq.aspx
- http://www.ehow.com/how_2077638_know-nfl-salary-cap-rules.html
- http://insidefootball.com/blog/archives/2366
- http://www.bloggingtheboys.com/2013...ion-amortization-cap-hits-dead-money-and-more
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