One thing to keep in mind when reading this
article is that a number of NFL team officials and NFLPA representatives have
stated that if a new CBA agreement is not in place by the time the 2006 league
year opens, 2007 will be an uncapped year regardless of an agreement being made
after that date. The reason? The rules and limitations outlined below
would already be in place for 2006 and would disadvantage teams and players if
changed midstream.
Firstly the main limitations on teams when
entering the final capped year, then the uncapped year, of the current
CBA. They can be best summarised as
follows:
1. The 30 percent rules
All non-signing bonus amounts in a players
contract that has a tenure greater than 2006 (and all new contracts entered
into in 2006) cannot increase by more than 30 percent each year for the
remaining life of the contract using 2006 (the final capped year) as the base
from which this starts. The parts of
the contract included in the 30 percent rule are base salary, roster bonuses,
reporting bonuses, LTBE incentives and option bonuses payable in 2006 or in
future years even though they are evenly spread like signing bonuses. Signing bonus amounts have no restrictions.
Termination and buyout clauses are also
heavily scrutinised under this rule, and any such clauses in contracts in an
attempt to circumvent the 30% rules would result in all signing bonus monies
allocated to future years or any buyout compensation counting in 2006.
2. UTBE incentives
For unlikely to be earned incentives, any
amounts achieved in 2006 during the season automatically hit the salary cap in
2006 when they are earned, and cannot be nudged into 2007. Thus, teams using incentives for players as
a way around the 30 percent rule could find themselves having to dump players
later in the year as certain incentives are reached.
3. Free Agency Restrictions
Any player with five years of experience
who under normal capped season rules would have been an unrestricted free agent
in 2007, will now be a restricted free agent in 2007 if the club decides to
designate those players as restricted.
4. Final Eight Plan
The teams that finish in the top 4 places
in each conference after the 2006 playoffs are restricted in the free agents
they can sign outside their own free agents in 2007. Each of the eight teams will be permitted to sign one UFA from
another team for each of their own UFA’s that have signed with another team.
5. Additional Transition Tag Designation
In the last league year of a CBA teams are
able to use an additional transition tag on a player.
The two areas that affect the Skins the
most right now are the 30 percent rules and the free agency restrictions in
2007.
Compliance Scenario
The Redskins are currently sitting at a
2006 salary cap figure of $115.5m - $20.5m over the estimated $95m NFL cap and
these leaves the Skins at real risk being in breach of the cap come March
3. Cutting of high cost players will
net only minimal savings. So that
brings us to the first option the Skins have to get under the cap--to cut as many
non-necessity players that save money as possible, redo some contracts.
First, the players that could be released. Here’s a list of 11 players with their 2006
cap savings if released in brackets:
That’s $9.3m saved against the cap (when
also figuring in the 12 players who would replace these guys under the Rule of
51)
Note: The Skins could re-sign a
couple of the cut players at vet minimum contracts that would be at a similar
level of compensation to the player as their 2006 money under the now
terminated contract, but at a much lower cap value to the team.
Secondly, contract tinkering to fit the 30
percent rules. Here’s a list of players
who’s contracts we could massage to make some savings with some basic
restructuring:
Scrap the 3.5m LTBE incentive in
2006 and the 3.0m roster bonus due in 2007,
Give him an option bonus of $6m, adding another year to his contract (2012),
Make his base salaries $1.5m (2006), $2.4m (2007), $3.3m (2008), $4m (2009),
$6.4m (2010), $7.3m (2011) and $8.2m (2012).
Base salaries from 2006-2009 would be guaranteed.
This would save
$1.500m in 2006.
Give him an option bonus of $5m,
adding another year to his contract (2009),
Make his base salaries $1.420m (2006), $2.2m (2007), $3.0m (2008) and $3.8m
(2009).
All base salaries would be guaranteed.
This would save
$1.350m in 2006.
Give him an
option bonus of $5m, adding another year to his contract (2010),
Make his base salaries $1.2m (2006), $1.9m (2007), $2.6m (2008), $3.3m (2009)
and $5.2m (2010).
Base salaries from 2006-09 would be guaranteed.
This would save
$1.050m in 2006.
Scrap the $2.5m
roster bonus in 2006
Give him an option bonus of $4m, adding another year to his contract (2010),
Make his base salaries $1.5m (2006), $2.250m (2007), $3.0m (2008), $3.750m
(2009) and $5.5m (2010).
Base salaries from 2006-09 would be guaranteed.
This would save
$1.500m in 2006.
Scrap the $0.6m LTBE incentive in
2006, and his roster bonuses in 2007/8/9
Increase his already existing option bonus in 2006 to $4m, triggering the 2009
year
Make his base salaries $0.670m (2006), $1.170m (2007), $1.8m (2008), and $2.0m
(2009)
Base salaries from 2006-09 would be guaranteed.
This would save
$0.327m in 2006.
Scrap the $2.5m roster bonus in
2006,
Give him an option bonus of $4m, adding another year to his contract (2011),
Make his base salaries $1.5m (2006), $2.250m (2007), $3.0m (2008), $3.750m
(2009), $5.5m (2010) and $6.250m (2011).
Base salaries from 2006-09 would be guaranteed.
This would save
$1.000m in 2006.
Scrap his $3.1m roster bonus in 2006
Give him an option bonus of $6m, adding another year to his contract (2010),
Make his base salaries $1.5m (2006), $2.4m (2007), $3.3m (2008), $4.2m (2009)
and $6.6m (2010).
Base salaries from 2006-09 would be guaranteed.
This would save
$0.850m in 2006.
Scrap his $3.0m roster bonus in
2006, $1.0m roster bonus in 2008 and $0.515m incentive in 2009
Give him an option bonus of $6m, adding another year to his contract (2012),
Make his base salaries $1.5m (2006), $2.4m (2007), $3.3m (2008), $4.2m (2009),
$6.6m (2010), $7.5m (2011) and $8.0m (2012).
Base salaries from 2006-09 would be guaranteed.
This would save
$0.545m in 2006.
Scrap the $1.6m LTBE incentive in
2006
increase his already existing option bonus in 2006 to $5m, triggering the 2010
year
make his base salaries $0.545m (2006), $1.050m (2007), $1.555m (2008), $2.060m
(2009) and $3.8m (2010)
base salaries from 2006-09 would be guaranteed.
This would save
$0.850m in 2006.
Scrap UTBE incentive from 2006
Give him an option bonus of $4m, adding another year to his contract (2011),
Make his base salaries $2m (2006), $2.9m (2007), $3.8m (2008), $4.7m (2009),
$6.6 (2010) and $7m (2011).
Base salaries from 2006-09 would be guaranteed.
This would save
$1.000m in 2006.
Reduce his roster bonuses in 2006,
08 and 09 down to $2.785m, $3.0m and $3.0m
Scrap all roster bonuses from 2010 onwards
Give him a restructure bonus of $6m,
Make his base salaries $0.545m (2006), $2.275m (2007), $2.350m (2008), $3.377m
(2009), $7.4m (2010) and $8.4m (2011).
Base salaries from 2006-09 would be guaranteed.
This would save
$2.215m in 2006.
That’s a further $12.1m in savings against
the cap.
There’s $21.4m of savings, which would
result in the Skins being nearly $1m under a $95m.
Refer to table for
details (highlighted players are those that have restructured).
Another possibility concerning Brunell and
Arrington is if each are prepared to take a decent, but what would be fair pay
cut, including terminating the years on their contracts post 2009 and then
reducing their base salaries and/or roster bonuses down to levels commensurate
with their performance and/or age, it would give the Skins more breathing space
and the ability to keep some of the players we listed to be released earlier.
Skins Impact – Free Agency Restrictions
in 2007
Only two prominent Redskin players will
qualify to be RFA’s in 2007 under the final league year rules after having more
than 3 years NFL experience – QB Patrick Ramsey and RB Ladell Betts.
This would allow the Skins to keep both
through 2006 and not risk losing them to unrestricted free agency (which would happen
if the CBA is extended).
Given the restrictions on player movements
in the final league year of a CBA, both of these players could become quite
valuable trade commodities in 2007 as teams search for talent in a restricted
market.
