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I dont mean to sound stupid


SCMunnerlyn1

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im hearing a lot of talk about if we CUT players we take a cap HIT ... why is this .. if u no longer have anything left to pay .. isnt there contract null and void besides the guaraunteed and we then have money ? i dont understand how we would lose .. please explain it to me .. this has been confusing me for weeks ?

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Also, a part of their contracted rate is applied against the team's salary cap. This was done as part of the collective bargaining agreement to keep teams from simply cutting a high priced player to clear up room without any penalty.

(See Ken Lucas for an example.)

If a player retires, however, there is no such penalty because it is supposedly done by the player's judgement rather than by a cold hard business decision.

It's meant to protect veteran players, to keep teams from going "on the cheap" instantaneously, and to promote trades wherein cap hits are traded along with the players.

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so if they are cut .. does that mean we immediately have to fork over the guaranteed contract money and our cap is hit or what?

It's kinda like this.

Joe Smith signs with the Panthers

He gets a 20 million contract for 5 years. with a 10 million signing bonus.

He gets that 10 million when he signs the paper.

Then gets 2 million a year salary.

To make the cap hit easier.

The panthers could spread out the "hit" of the 10 million bonus across the 5 years. The player already has his 10 million but you are spreading that "hit" across 5 years.

Like this

Year

1 2 million salary + 500k bonus hit = 2.5 million cap hit

2 2 mill salary + 500K bonus hit = 2.5 mill cap hit

3 2 mill sal + 1 million k bonus hit = 3 mill cap hit

4 2 mill salary + 1 mill bonus hit = 3 mill cap hit

5 2 mill salary + 6 mill bonus hit = 8 mill cap hit

That would be a backloaded contract and is very simplified.

You could cut the guy in year 4 and save 2 million towards his cap hit if you wanted.

Hope that helps

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im starting to understand a little better .. so as i see it now .. we take a penalty every time a longer contracted player is cut such as if we were to cut someone like delhomme the hit would be bigger because of a hefty contract plus extensions ? is it the shorter/smaller a contract the smaller the hit or does length not matter at all ? and yes dockery it seemed appropriate for me to ask because i couldnt figure it out and it seemed only a select 7 or 8 guys were talking about cap and everyone else was just reading the how much will peppers make a game thing

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It's kinda like this.

Joe Smith signs with the Panthers

He gets a 20 million contract for 5 years. with a 10 million signing bonus.

He gets that 10 million when he signs the paper.

Then gets 2 million a year salary.

To make the cap hit easier.

The panthers could spread out the "hit" of the 10 million bonus across the 5 years. The player already has his 10 million but you are spreading that "hit" across 5 years.

Like this

Year

1 2 million salary + 500k bonus hit = 2.5 million cap hit

2 2 mill salary + 500K bonus hit = 2.5 mill cap hit

3 2 mill sal + 1 million k bonus hit = 3 mill cap hit

4 2 mill salary + 1 mill bonus hit = 3 mill cap hit

5 2 mill salary + 6 mill bonus hit = 8 mill cap hit

That would be a backloaded contract and is very simplified.

You could cut the guy in year 4 and save 2 million towards his cap hit if you wanted.

Hope that helps

In this case you would definitely not want to cut him in year four and I know it is simplified but if you thought you wouldn't want to keep him five years you would give him the six million in year 5 not as a guaranteed signing bonus but a conditional roster bonus.

In your scenario if he got cut year 4 we would be on the hook for the 1 million bonus for that year and the 6 million bonus would be due immediately which is guaranteed in year 5.

In my scenario which is what happened with Moose the first time, we didn't keep him in 2005 and we didn't have to pay a huge roster bonus of 10 million. Using your example, by making it a roster bonus we wouldn't have to pay it if he were cut and we wouldn't be on the hook for it as long as he wasn't on the roster when the bonus was due.

Just sayin................

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