Finding Cap Space

[AZ54]

Free agency begins March 8th, a little more than 2 weeks away. We need $$$ space. Looking at the numbers on this site:

 

http://www.spotrac.com/nfl/chicago-bears/

 

Aside from reworking Cutler deal, I see the following options:

 

Cut Peppers: dead cap space $8.3mil, Frees up $9.8mil I've said I'm in favor of this and not changing now.

 

Cut Michael Bush: dead cap space $2mil, Frees up $1.85 mil More than enough to sign a replacement capable of getting 3.1 yd/carry and leave at least $800k for other players.

 

Cut Podlesh: dead cap space: $800k, Frees up $1.8mil Find a Punter for closer to minimum salary and we should have ~$500k in change.

 

Cut Weems: dead cap space $500k. Frees up $1.1mil He's not that effective and we should be able to find a replacement for closer to minimum salary and leave a $500k in change.

 

Cut Earl Bennett: Frees up $2.45mil. While I hate to see Earl go he's injury prone and if Marquess Wilson develops as we expect this should be non-factor. Plus we have others in the wings like Anderson who should be able to provide similar depth now in their second year in Trestman's system.

 

We've discussed all of these options before. It seems at best with this approach, after finding replacement players for P, RB, ST/WR we will have ~$14mil to spend in FA. That's likely not enough to get back our own players such as Melton, McCown, Garza, Britton, Ratliff, Scott, Bowman, Wotton, etc. and the rookies. (I'm assuming the rookie pool fits into that budget as well).

 

Something else will have to be done if we're going to upgrade any position on defense. A couple other options I see are extending Brandon Marshall's contract. Extending Briggs contract. Briggs was still playing at a very high level last year and should be able to continue through 2015 as an effective player. If the price is right I'd do an extension, if he wants $5mil/yr I'd get ready to say goodbye after 2014. I certainly wouldn't mind keeping Marshall around a few years beyond 2014.

 

Change is coming...

 

http://www.cbssports.com/nfl/writer/pat-ki...s-again-are-not

[Stinger226]

Free agency begins March 8th, a little more than 2 weeks away. We need $$$ space. Looking at the numbers on this site:

 

http://www.spotrac.com/nfl/chicago-bears/

 

Aside from reworking Cutler deal, I see the following options:

 

Cut Peppers: dead cap space $8.3mil, Frees up $9.8mil I've said I'm in favor of this and not changing now.

 

Cut Michael Bush: dead cap space $2mil, Frees up $1.85 mil More than enough to sign a replacement capable of getting 3.1 yd/carry and leave at least $800k for other players.

 

Cut Podlesh: dead cap space: $800k, Frees up $1.8mil Find a Punter for closer to minimum salary and we should have ~$500k in change.

 

Cut Weems: dead cap space $500k. Frees up $1.1mil He's not that effective and we should be able to find a replacement for closer to minimum salary and leave a $500k in change.

 

Cut Earl Bennett: Frees up $2.45mil. While I hate to see Earl go he's injury prone and if Marquess Wilson develops as we expect this should be non-factor. Plus we have others in the wings like Anderson who should be able to provide similar depth now in their second year in Trestman's system.

 

We've discussed all of these options before. It seems at best with this approach, after finding replacement players for P, RB, ST/WR we will have ~$14mil to spend in FA. That's likely not enough to get back our own players such as Melton, McCown, Garza, Britton, Ratliff, Scott, Bowman, Wotton, etc. and the rookies. (I'm assuming the rookie pool fits into that budget as well).

 

Something else will have to be done if we're going to upgrade any position on defense. A couple other options I see are extending Brandon Marshall's contract. Extending Briggs contract. Briggs was still playing at a very high level last year and should be able to continue through 2015 as an effective player. If the price is right I'd do an extension, if he wants $5mil/yr I'd get ready to say goodbye after 2014. I certainly wouldn't mind keeping Marshall around a few years beyond 2014.

 

Change is coming...

 

http://www.cbssports.com/nfl/writer/pat-ki...s-again-are-not

Actually if we wait to cut Peppers after June 1, we can spread his dead money over 2 years. Read that on an ESPN site.

[adam]

Free agency begins March 8th, a little more than 2 weeks away. We need $$$ space. Looking at the numbers on this site:

 

http://www.spotrac.com/nfl/chicago-bears/

 

Aside from reworking Cutler deal, I see the following options:

 

Cut Peppers: dead cap space $8.3mil, Frees up $9.8mil I've said I'm in favor of this and not changing now.

 

Cut Michael Bush: dead cap space $2mil, Frees up $1.85 mil More than enough to sign a replacement capable of getting 3.1 yd/carry and leave at least $800k for other players.

 

Cut Podlesh: dead cap space: $800k, Frees up $1.8mil Find a Punter for closer to minimum salary and we should have ~$500k in change.

 

Cut Weems: dead cap space $500k. Frees up $1.1mil He's not that effective and we should be able to find a replacement for closer to minimum salary and leave a $500k in change.

 

Cut Earl Bennett: Frees up $2.45mil. While I hate to see Earl go he's injury prone and if Marquess Wilson develops as we expect this should be non-factor. Plus we have others in the wings like Anderson who should be able to provide similar depth now in their second year in Trestman's system.

 

We've discussed all of these options before. It seems at best with this approach, after finding replacement players for P, RB, ST/WR we will have ~$14mil to spend in FA. That's likely not enough to get back our own players such as Melton, McCown, Garza, Britton, Ratliff, Scott, Bowman, Wotton, etc. and the rookies. (I'm assuming the rookie pool fits into that budget as well).

 

Something else will have to be done if we're going to upgrade any position on defense. A couple other options I see are extending Brandon Marshall's contract. Extending Briggs contract. Briggs was still playing at a very high level last year and should be able to continue through 2015 as an effective player. If the price is right I'd do an extension, if he wants $5mil/yr I'd get ready to say goodbye after 2014. I certainly wouldn't mind keeping Marshall around a few years beyond 2014.

 

Change is coming...

 

http://www.cbssports.com/nfl/writer/pat-ki...s-again-are-not

 

I am confused, you freed up $13.75 million with those players and we already had around $13.5 under the cap. So we are starting with over $27 million. Also, Emery has a bunch of those conversion contracts (Cutler, Gould, Jennings, Slauson) where he can convert current salary into a bonus. So he can take $14 million for Cutler this year and spread it over the life of the deal reducing this year's hit by $12 million. So we have as much room as we need.

[CrackerDog]

I am confused, you freed up $13.75 million with those players and we already had around $13.5 under the cap. So we are starting with over $27 million. Also, Emery has a bunch of those conversion contracts (Cutler, Gould, Jennings, Slauson) where he can convert current salary into a bonus. So he can take $14 million for Cutler this year and spread it over the life of the deal reducing this year's hit by $12 million. So we have as much room as we need.

 

It's my understanding that Emery has that option and could therefore clear space as suggested. It's also my understanding that we could wait on Peppers and cut him then, spreading the cap hit over two years but that we wouldn't have his $$$ available for the start of free agency if we did that. I see almost no way Peppers sticks with the club under his current deal.

 

Emery is probably well down the road with Pepper's agent, likely has a hit list of FA's he wants to go after hard and he'll be pulling money from various sources as the need comes up. It looks like we'll need to purchase/draft almost an entire defense. That isn't going to be easy, regardless of how much cap space we have.

[scs787]

The problem with cutting Pep June though is that's almost 3 months after the start of FA. They MIGHT be able to find some depth still but it would more than likely be slim pickins.

['TD']

Cutting Peppers using the June 1st designation would make sense.

 

Untill June 1st, it would be the same as cutting Peppers. They would save near 10 million. Once June 1st hits, they'd save an additional 4.3 million or whatever. This money could be used towards the rookie pool, and 4.3 million of what they would have to save back for the rookie pool anyways could be spent now.

[Chitownhustla]

Cutting Peppers using the June 1st designation would make sense.

 

Untill June 1st, it would be the same as cutting Peppers. They would save near 10 million. Once June 1st hits, they'd save an additional 4.3 million or whatever. This money could be used towards the rookie pool, and 4.3 million of what they would have to save back for the rookie pool anyways could be spent now.

 

 

If they wait to cut him wouldn't it be in his favor to restructure at that point. The more teams that spend up their cap space the less team will be able to sign him to a larger contract.

 

 

Would it make more sense for cap purposes to cut and resign or restructure?

['TD']

Peppers is 34. A restructure just delays the inevitable and makes it costlier to cut him next year. I really don't see an extension being plausible as he will be 36 when this contract expires.

 

He is almost 1/6th of the Bears cap this year if he plays. Cutting him saves close to 10 million this year. Cutting him with the June 1st designation frees up 14 million this year.

 

Basically, Cutler's contract screwed the Bears this year. He has a 22.5 million salary. The bears have 47 spots filled and only 3 million in cap space and many starting caliber players needed. Any June 1st designation or moving of Cutler and other's money, is just going to hurt the team in the future capwise. It will be needed tho just to field a team.

[CrackerDog]

Peppers is 34. A restructure just delays the inevitable and makes it costlier to cut him next year. I really don't see an extension being plausible as he will be 36 when this contract expires.

 

He is almost 1/6th of the Bears cap this year if he plays. Cutting him saves close to 10 million this year. Cutting him with the June 1st designation frees up 14 million this year.

 

Basically, Cutler's contract screwed the Bears this year. He has a 22.5 million salary. The bears have 47 spots filled and only 3 million in cap space and many starting caliber players needed. Any June 1st designation or moving of Cutler and other's money, is just going to hurt the team in the future capwise. It will be needed tho just to field a team.

 

I couldn't disagree with that last paragraph more. The contract gives Emery the flexibility he may need. Moving Cutler's money around doesn't hurt the team in future years if Cutler himself lives up to the expectations of the contract. I'm not willing to rehash that whole argument again but it's clear your expectation is that Jay won't and that you'd have been happier with Josh and some free agent. So be it. But don't think for a minute that you're going to convince me (or others) that Jay's contract is screwing the team when it's basically the exact opposite.

 

I agree with you on Peppers, I don't see a way forward there. I expect they'll cut him, bite the bullet and then if he doesn't draw a long term deal elsewhere, perhaps they can sign him for a shorter deal at reasonable money to bring him back. I think someone will toss a decent signing bonus at him and he'll be gone.

['TD']

The contract gives the team flexibility within the contract, but everyone has to pay the piper. If they convert 10 million this year to bonus, it will free up 8 million in cap space and bump up the next 4 years by 2million. 2015 it will go up to 17.5 million, 18 million in 2016, 17 million in 2017, and 18 million in 2018. If they have to do it again next year 2016 will go up to 20.5 million, 19.5 million in 2017, and 20.5 million in 2018.

 

Each year they use it like a credit card, it still adds up and needs paid down the road.

 

I'll avoid the his play to not distract from the topic. I think it's irrelevant anyways, even if you play like Peyton Manning that kind of salary is prohibitive to your team. Players like Tillman and Melton will likely be cap casualties. It will also make it hard to resign players coming into their prime like Jeffery.

 

The cap casualties and dead money are never good for a team. We could debate a players worth, but you can't debate how that size of a contract restricts a team.

[Mongo3451]

will repost in a second need to edit the numbers

Replying to the last two posts from TD and Crackerdog. I think you both correct in the terms of the Cutler deal. It's in the eye of the beholder on whether you feel he will be worth it or not. The staff has deemed it worth, so as of now, I'm behind it until it doesn't work. At that time, I'll determine my faith in the new brass. So far, they get an A on offense and a F on defense. Let's see how the rebuild continues....

[scs787]

The contract gives the team flexibility within the contract, but everyone has to pay the piper. If they convert 10 million this year to bonus, it will free up 8 million in cap space and bump up the next 4 years by 2million. 2015 it will go up to 17.5 million, 18 million in 2016, 17 million in 2017, and 18 million in 2018. If they have to do it again next year 2016 will go up to 20.5 million, 19.5 million in 2017, and 20.5 million in 2018.

 

Each year they use it like a credit card, it still adds up and needs paid down the road.

 

I'll avoid the his play to not distract from the topic. I think it's irrelevant anyways, even if you play like Peyton Manning that kind of salary is prohibitive to your team. Players like Tillman and Melton will likely be cap casualties. It will also make it hard to resign players coming into their prime like Jeffery.

 

The cap casualties and dead money are never good for a team. We could debate a players worth, but you can't debate how that size of a contract restricts a team.

 

What confuses me a bit is the fact that he's only garunteed 54M. So lets say they do what you said, his first 3 years he gets 48M. Now what if they go back to the well again and convert his cap hit to 6M in year 4, can they still release him before the big hits come in year 5-7?

['TD']

Correct me if I'm wrong here, and I probably am, but after the Bears pay Jay his 54M guaranteed he can be cut with no cap ramifications. If they plan on keeping him for 5 years couldn't they theoretically make his cap hit 10.8M every year then cut him before the number gets ridiculous?

 

 

His contract doesn't work that way. In March, he will have 38 guaranteed on his contract. If he is cut next month. His guarantee goes up to 48 million of march of next year and 54 million in march of 2016. Below I will put his money if cut each year.

 

Dead Money:

2014 38,000,000

2015 15,500,500

2016 10,000,000

2017 0

2018 0

It's all considered salary, so it doesn't take the effect of bonuses where it could be spread out. However, it is considered a 5 year contract.

 

If the Bears convert 10 million this year to bonus money, then the Bears will have 8 million extra in cap space this year. The 10 million will be spread out over 5 years and each ear will take a cap hit of 2,000,000 more due to dead money spread out.

 

The next 2 years of Cutelr's contract, 2017 he has a base salary of 12,500,000 and 13,500,00 in 2018. Each year he has a 2.5 milllion roster bonus after the first 3, so his cap number in 2017 is 15M and 16M in 2018.

 

Any money spread out will bump up those years. If we take 10 million converted this year to free up 8 million in cap space, 2017's cap number goes up to 17M for the year and 18M for the 5th year. If he is cut, his dead money would be bumped up to the following.

 

Dead Money

2014 46,000,000

2015 23,500,000

2016 16,000,000

2017 4,000,000

2018 2,000,000

 

 

I know went off track from what you asked, but basically no the Bears can't do that.

[scs787]

I changed my previous post, but I'm still more than likely wrong. The cap is the one thing I will never quite understand.

 

I'm gonna go ahead and back out of this because I'll only get further confused lol

[Stinger226]

I changed my previous post, but I'm still more than likely wrong. The cap is the one thing I will never quite understand.

 

I'm gonna go ahead and back out of this because I'll only get further confused lol

TD spelled it all out for you, that is exactly how it works, there is no room for confusion. All contracts can be spelled out differently, but this one is pretty basic, he gets paid for 3 years and if its going down the wrong road, we cut him loose with no after taste.

 

I cant remember where I read it but there is a date that they start calulating the top 53 salaries, and I thought it was June 1. What that means if I got it right, they can after the draft designate a June 1 cut and they can play with that money until the the cap sturcture goes into effect. I will look for that and see if I can be more clear on this subject.

[scs787]

TD spelled it all out for you, that is exactly how it works, there is no room for confusion. All contracts can be spelled out differently, but this one is pretty basic, he gets paid for 3 years and if its going down the wrong road, we cut him loose with no after taste.

 

I cant remember where I read it but there is a date that they start calulating the top 53 salaries, and I thought it was June 1. What that means if I got it right, they can after the draft designate a June 1 cut and they can play with that money until the the cap sturcture goes into effect. I will look for that and see if I can be more clear on this subject.

 

I don't think it's that cut and dry. If they dip into his cap money all 3 years I don't think they can "cut him with no after taste". That's the part where I was confused.

['TD']

What confuses me a bit is the fact that he's only garunteed 54M. So lets say they do what you said, his first 3 years he gets 48M. Now what if they go back to the well again and convert his cap hit to 6M in year 4, can they still release him before the big hits come in year 5-7?

 

You can basically forget years 6 and 7. They are optional and won't be affected by bonuses from previous years or dead money.

 

I'm not sure what you mean by cutting his cap hit to 6M in year 4. Basically any conversion they make in year 4 will be spread over year 4 and year 5 evenly.

 

Right now his cap his for year 4 is 15M and year 5 is 16M. If they convert 10 million of year for to to bonus, 5 million of that bonus will still apply to each year. His cap number for year 4 would drop to 10 million and his cap number for year 5 would raise to 21M.

 

If the Bears cut Cutler the 5th year, the Bears would then have 5 milion of dead money on the cap for that year.

 

It's impossible to drop his cap number to 6 million in year 4, so I just used 10 million as an example for easier numbers to work with. I hope this helps some.

['TD']

I don't think it's that cut and dry. If they dip into his cap money all 3 years I don't think they can "cut him with no after taste". That's the part where I was confused.

 

Oh yea if they dip too much each of the first 3 years, it can get ugly, I didn't understand you were asking that when I wrote my last reply.

 

My post above considered no dipping in before year 4.

[Stinger226]

I don't think it's that cut and dry. If they dip into his cap money all 3 years I don't think they can "cut him with no after taste". That's the part where I was confused.

They left it open to be able to use money if they needed to, but it doesnt become a future problem until they do that, and it just gets spread over the life of the contract. I dont think they use his money if they makes the proper cuts to get some money to use. The other 3 they signed have the same contracts and would prefer to use their money first amd leave the QB situation to play itself out.

[LT2_3]

A few points:

 

1. Don't use spotrac as a resource. It's overly simplistic in approach and it makes their numbers wrong too often. Use http://overthecap.com/teamcap.php?Team=Bears&Year=2014 instead.

 

2. They can release Peppers at the start of free agency and use the June 1st designation to get all of the cap savings immediately.

 

3. In the offseason, only the top 51 contracts count against the cap.

 

4. If they convert part of Cutler's salary into bonus, they will likely only do it once. Assuming anything else is silly.

['TD']

A few points:

 

1. Don't use spotrac as a resource. It's overly simplistic in approach and it makes their numbers wrong too often. Use http://overthecap.com/teamcap.php?Team=Bears&Year=2014 instead.

 

2. They can release Peppers at the start of free agency and use the June 1st designation to get all of the cap savings immediately.

 

3. In the offseason, only the top 51 contracts count against the cap.

 

4. If they convert part of Cutler's salary into bonus, they will likely only do it once. Assuming anything else is silly.

 

Cap savings aren't available immediately.

http://overthecap.com/explaining-the-june-1st-designation/

[LT2_3]

Cap savings aren't available immediately.

http://overthecap.com/explaining-the-june-1st-designation/

 

Thank you for the correction. They can release Peppers at the beginning of free agency and get immediate cap relief of his $14 million in salary and workout bonus - and then have to wait for June 1st to push the extra $4ish million into next year.

[LT2_3]

And on the issue of cap space, it looks like the cap is going up about $7 million this year - so that won't hurt.

[AZ54]

$7mil increase, I'd heard about $3mil. Yes, that helps a lot but it also helps all the other teams. That might be enough space this year to get decent FA players while guaranteeing them a large bonus in 2015 when we have more cap space.

 

…and I bookmarked Over the Cap, thanks for the link.

['TD']

Thank you for the correction. They can release Peppers at the beginning of free agency and get immediate cap relief of his $14 million in salary and workout bonus - and then have to wait for June 1st to push the extra $4ish million into next year.

 

I'm really not trying to troll you by correcting you, but I want to get the correct info on here. I had thought it worked the same way in an earlier post, but I was wrong.

 

Basically, Peppers would count the full 18 million until June 2nd hits. Here's an article that has the wording from the collective bargaining agreement.

http://www.thephinsider.com/2013/6/2/43866...t-karlos-dansby

Article 13, Section 6 ( (ii) Acceleration.

(1) For any player removed from the Team's roster, or whose Contract is assigned to another Club via waivers or trade, on or before June 1 in any League Year prior to the Final League Year, or at any time during the Final League Year, any unamortized signing bonus amounts will be included in Team Salary for such League Year, except that for each League Year preceding the Final League Year, each Club may designate up to two Player Contracts that, if terminated on or prior to June 1 and if not renegotiated after the last regular season game of the prior League Year, shall be treated (except to the extent prescribed by Section 6(d) (iv) below) as if terminated on June 2, i.e., the Salary Cap charge for each such contract will remain in the Club's Team Salary until June 2, at which time its Paragraph 5 Salary and any unearned LTBE incentives will no longer be counted and any unamortized signing bonus will be treated as set forth in Subsection (2) below. If acceleration puts a Team over the Salary Cap, the Team will have seven days to conform with the Salary Cap, but may not sign any players until there is Room to do so under the Salary Cap.

 

Here's another article that spells it out pretty clearly at the end. Basically, the only savings the Bears would have on Peppers would be the 100k work out bonus until June 2nd. He would count over 18 million against the cap until then.

 

http://russellstreetreport.com/pollard-rel...e-until-june-1/

 

So, how does this all apply to Pollard and the Ravens?

 

Pollard was originally set to have a 2013 Cap number of $3.25M, which included his base salary of $2M, his Roster Bonus of $500K and the 2013 bonus proration of $750K from his 2012 Signing Bonus ($3M bonus/4 years = $750K proration each year).

 

Since he was released with the Post June 1 Designation, Pollard will remain on the Ravens Cap until June 1st – but at $2.75M, since he was released before his $500K Roster Bonus was paid. After June 1, his base salary will be removed from the Cap and only the 2013 bonus proration of $750K will remain.

 

Therefore on June 1 the Ravens will get another $2M in cap relief for 2013 however, the remaining 2 years of bonus prorations of $750K each will accelerate against the 2014 Cap and count as $1.5M in dead money.

 

Had Pollard been released without the Post June 1 Designation, all of the bonus prorations, totaling $2.25M, would have counted as dead money against the 2013 Cap. That would have meant only $1M in Cap savings for 2013, but there would have been no Cap charges carried over into 2014.