I find the cap rules confusing, so I am not looking for an argument, but I would love an explanation. So if someone could talk to me like I'm ignorant, but not stupid, I would appreciate it. š I am guessing others would as well.
Originally Posted by: KRK
I've never been the best at explaining things (even when I know them extremely well), but I'll surely give it a shot, but wait to start off by noting a couple of things...
The NFL cap is confusing for two main reasons
1) It's the NFL's own version of an single year accounting system (when normally people are used to Cash basis system and multiple years)
2) The Media, fans, etc, bounce back and forth between the cap accounting system, and the normal cash basis system that we're used to, and that just add a hell lot of confusion to it, as you have to then break them apart in your mind.
I would strongly encourage anyone trying to understand NFL contracts, to mainly follow the money (and averages), and ignore the cap as much as possible... as it's a misleading, complex, 1 year accounting system, that all evens out at the end of players contract, but not during it.... so instead of following the accounting, FOLLOW THE MONEY!
So here is my questions predicated on my understanding (which may not be correct):
[list]
If they chose to keep Perry, what is the incremental cap hit to keeping him this year?[/list][list]
If they cut him I am assuming they could not use the (dead cap) money on others...Correct?[list]
When you say they save $24mm, I had thought they couldn't spend the money on others...is this assumption correct?[/list]The net of my rationale, which may not have been correct, was that if (i) they only had to spend an additional $3mm AND (ii) they could just as easily cut him after next year if he weren't working out AND (iii) they couldn't spend the money on anyone else then I think they should take the risk.
Originally Posted by: KRK
Perry's contract on spotrac
https://www.spotrac.com/nfl/green-bay-packers/nick-perry-9838/ 1) That wording is confusing because you're mixing the multiple year concept (incremental) with the single year account system term (cap hit)... so I would prefer to the term incremental cost hit (the cost of keeping Perry another year is) the amount of cash he's actually earning this year (yearly earning).. which is
$10,737,500 (located on the very far right on spotrac contract).
That yearly earning (unearned so far), plus signing bonus average (earned already) is what equals the single year cap hit.... so most of the time people are using the cap hit as far as what a guy is going to make/cost the team, but that's mistaken because that signing bonus average makes the cap number misleading about what they're actually earning that year.
2) Correct, dead money is dead (unusable)... actually dead money is usually the players signing bonus money that was paid to them when they signed the contract... so it's already in the players bank account... so teams can't use it, because it's already been used.
The reason they spread it over the first 5 years of a players contract is because the accounting system is a one year system, and teams would be over the limit if they had to account for the entire signing bonus in a single year. Example, Aaron Rodgers cap hit would be $66.9 million in 2018 (37.75% of the entire cap) if teams were forced to account for it all in the season they got it... so instead teams spread it over 5 years to give them some balance on the single year accounting system. So instead the Packers cap hit on Rodgers is only $20.9 million in 2018 and the rest is spread out on the next four years.
3) No, the $24 million I'm talking about is LIVE money savings... and my math is wrong... as I freaking screwed up and mixed the accounting system (of saving $3 million next year) and the cash system (of saving $21 million over the last two years)... it's so freaking easy to do...
If I'm doing this correctly now it's actually more than $24 million... if they cut Perry before the $4.8M roster bonus is due on (3/15/2019), then the Packers actually save $31.7375 million over the next three years (I think, my brain is staying to fry from looking at this too much)
But Cash it's simply... Perry's Yearly Salary is $10,737,500 + $10.6 + $10.4 = $31.7375
Cap is more complex... but the Cap Hits are $14.4375 + $14.3 + $14.1 = $42.8375 MINUS the one year Dead Cap hit of $11.1 and you also get $31.7375.... so the cash and accounting balance... (but only $14.4375 minus the $11.1 = $3.3375 in the first year, 2019).
Just following the cash and average salary is so much easy than paying attention to the cap. Sorry I screwed up mixed the Accounting and Cash with the $24 š ... it's so easy to do... I hope this helped some in your understanding contracts a bit better... though not completely I'm sure as it is confusing.