1st in cap space but the credit cards are maxed......why?

[AU-panther]

According to overthecap.com we are first in cap space available in the league with roughly $34m in available cap space.

NFL Salary Cap Space | Over The Cap

At first glance this seems to be a good thing, but people need to realize that the reason we have the most cap space is because we have pretty much restructured everyone on the team that has a base salary of any size outside of Sam Darnold.  The next highest base salary is Cam Erving at only $4m.

For those that don't know the most common way for teams to create cap space is to restructure players.  You do this by converting base salary to a bonus and prorating it over future years, up to 5 years.  For example if a player has an $11m base salary in the current year their cap hit is $11m.  If you convert $10m into a singing bonus you can then account for that $10m over a max of 5 years.  That would lower their current cap hit to $3m ($1m base salary + $2m (which is the $10m spread over 5 years)).  Basically you have just created $8m of cap space in the current year.

While there are teams with less listed cap space then us, in reality they have a lot more available cap space because they have several players that have high base salaries that they could always restructure.  For example the bears could easily create another $35-$40m in cap space if they wanted to.  The Steelers could create another $30m or so.   The Ravens could get $40-50m more.  

My point is we are almost fully leveraged, the credit cards are maxed so to speak.

Why do teams do this?  Teams don't like to restructure if they don't have to.  Why would you ever take non guaranteed salary and guarantee it?  Teams do this whey they have to.  If they are over the cap they have to, for example the Saints most years.  Or if they are right at the cap they might restructure a few guys so they have a little bit of cushion to go into the year, just incase you  have to sign someone because of injuries, but usually not to the point of $30m of space.

Another reason a team might do this is if they plan on signing or trading for someone.  I'm not saying we are trading for Jimmy G (or Baker), but that $30m in cap space we have created would allow us to take on his salary, sign our rookies, and still leave a little bit of cushion for the season.

None of know for sure what is going to happen but the money says we are looking to sign a vet QB and then draft a non-QB (hopefully LT).  I could even see a scenario where we trade down on draft night and use those extra picks to trade for one of the vets.

 

[LinvilleGorge]

Hurney is gone yet somehow we've upped the Hurney-ism of our cap management.

 

[Panthercougar68]

Salary cap is a myth. 

[hepcat]

In 2023 they currently have 5m in cap space because of all the cans kicked down the road. 2024 it's over 130m

[top dawg]

2 minutes ago, AU-panther said:

According to overthecap.com we are first in cap space available in the league with roughly $34m in available cap space.

NFL Salary Cap Space | Over The Cap

At first glance this seems to be a good thing, but people need to realize that the reason we have the most cap space is because we have pretty much restructured everyone on the team that has a base salary of any size outside of Sam Darnold.  The next highest base salary is Cam Erving at only $4m.

For those that don't know the most common way for teams to create cap space is to restructure players.  You do this by converting base salary to a bonus and prorating it over future years, up to 5 years.  For example if a player has an $11m base salary in the current year their cap hit is $11m.  If you convert $10m into a singing bonus you can then account for that $10m over a max of 5 years.  That would lower their current cap hit to $3m ($1m base salary + $2m (which is the $10m spread over 5 years)).  Basically you have just created $8m of cap space in the current year.

While there are teams with less listed cap space then us, in reality they have a lot more available cap space because they have several players that have high base salaries that they could always restructure.  For example the bears could easily create another $35-$40m in cap space if they wanted to.  The Steelers could create another $30m or so.   The Ravens could get $40-50m more.  

My point is we are almost fully leveraged, the credit cards are maxed so to speak.

Why do teams do this?  Teams don't like to restructure if they don't have to.  Why would you ever take non guaranteed salary and guarantee it?  Teams do this whey they have to.  If they are over the cap they have to, for example the Saints most years.  Or if they are right at the cap they might restructure a few guys so they have a little bit of cushion to go into the year, just incase you  have to sign someone because of injuries, but usually not to the point of $30m of space.

Another reason a team might do this is if they plan on signing or trading for someone.  I'm not saying we are trading for Jimmy G (or Baker), but that $30m in cap space we have created would allow us to take on his salary, sign our rookies, and still leave a little bit of cushion for the season.

None of know for sure what is going to happen but the money says we are looking to sign a vet QB and then draft a non-QB (hopefully LT).  I could even see a scenario where we trade down on draft night and use those extra picks to trade for one of the vets.

 

Well listening to (I believe Jonathan Alexander) a podcast, I heard that only around 11 mil is really usable anyway because of the necessity to sign rookie contracts, and have a little in reserve. We really can't afford Garrapolo or Mayfield right now without some type of massive upheaval in the ranks of personnel (not them and Darnold). It's too much money.

[Khyber53]

Everyone always thinks they can outsmart the credit cards.

No one ever really does.

[AU-panther]

2 minutes ago, LinvilleGorge said:

Hurney is gone yet somehow we've upped the Hurney-ism of our cap management.

 

That is funny and sad all at the same time.

Hurney did it because he had to, usually because overspent in previous years.  This situation is different.

We didn't have to do this, unless we are strongly considering adding someone that we need the space for.

 

[AU-panther]

2 minutes ago, top dawg said:

Well listening to (I believe Jonathan Alexander) a podcast, I heard that only around 11 mil is really usable anyway because of the necessity to sign rookie contracts, and have a little in reserve. We really can't afford Garrapolo or Mayfield right now without some type of massive upheaval in the ranks of personnel (not them and Darnold). It's too much money.

Thats not true, rookies don't take as much as people think.  People add up all of the salaries of the rookies and think that is how much you need and it doesn't work that way.  You have to remember those rookies are replacing contracts that are already on the team.  So a 5th round pick will make around $800k but he will replace a guy making $600k so you that doesn't really add much.  The only picks that really add much to your needed cap space are your 1st and 2nd rounders.  Everyone else is getting paid close to league minimum which is the same as your current players.  Also we don't have a 2nd.

 

[AU-panther]

8 minutes ago, Panthercougar68 said:

Salary cap is a myth. 

No its not.

If it was then why did the Chiefs lets Hill walk?  Or Packers let Adams walk?

Great players leave teams all the time and its because of the salary cap.  The only people who think the cap is a myth are those that don't understand it.

With that being said most teams, most years, have slack build into their contracts that they can create extra cap space with.  That is the restructuring I talked about it earlier, or they can cut/trade players to create space.  So these numbers that fans see for available cap space are often very misleading.

 

 

[top dawg]

14 minutes ago, AU-panther said:

Thats not true, rookies don't take as much as people think.  People add up all of the salaries of the rookies and think that is how much you need and it doesn't work that way.  You have to remember those rookies are replacing contracts that are already on the team.  So a 5th round pick will make around $800k but he will replace a guy making $600k so you that doesn't really add much.  The only picks that really add much to your needed cap space are your 1st and 2nd rounders.  Everyone else is getting paid close to league minimum which is the same as your current players.  Also we don't have a 2nd.

 

Hey, I'll take your word for it. Capology is not my strong suit (and I'm not interested in all adding up all those numbers). I know some are, so I'm counting on y'all to give me the scoop. Accurately of course.

 

 

Edited April 15, 2022 by top dawg

[Jackie Lee]

Just glancing at next years numbers we could clear like $17M cutting/trading Robby and Elflein next year. We may only end up using like $8M of what we have now for the draft if we don't trade for a QB, so carry that $22M over. That's like $44M without any additional restructures or anything. It's interest free to do all the restructuring/bonus crap so as long as you don't blow the extra money you just borrowed on lets say one year of Jimmy G, there's no harm done. 

[Waldo]

The Panthers are trying to emulate the Saints but they don't have the skill with the cap or player evaluations to pull it off. They are just making a huge mess with a bunch of overpaid or hurt players. The push started to clear up cap for Air Truster. 

The worst thing Hurney left behind is the belief that they are one move away from wining it all this year. The second was his people he hired. Everyone was hired by Hurney or by the people he hired still. It is all 100% Tepper's fault and it is up to him to clean it up. Clean house.

[Smithers]

We obviously created the cap space hoping to take on Watsons contract.  That didn’t happen, so now the question is will we sign a couple more guys (Brown, Clowney) or simply roll that over next year

[kungfoodude]

2 hours ago, Khyber53 said:

Everyone always thinks they can outsmart the credit cards.

No one ever really does.

I mean.....the Saints have.