Redskins Cap (article from CBS Sportsline)

[kkryan]

If the nfl and nflpa ammend a new cba we will be fine...if not there could be trouble. No cba...you cant restructure and spread money out over several years. Here is to an extension of the cba!!!!!!!!

[1niksder]

If the nfl and nflpa ammend a new cba we will be fine...if not there could be trouble. No cba...you cant restructure and spread money out over several years. Here is to an extension of the cba!!!!!!!!

Not several years but "the Danny" will have 4 years to play with

[1niksder]

Woodson is out the door, Peterson on the way

Al Davis always has loved having Heisman Trophy winners on his Raiders roster. Cornerback Charles Woodson has one of those on his resume, and for eight seasons he worked that bit of leverage with the big man upstairs for all it was worth.

But at a price tag exceeding $12.6 million -- the cost of a third consecutive franchise tag for an oft-injured defensive back who hasn't played a full 16-game season since 2001 -- Woodson's value as a collector's item has expired.

And his days in a Raiders uniform are over.

The deadline for NFL teams to place franchise or transition tags on players is Thursday, and neither Bay Area team will use the designation on its roster.

So prepare to say goodbye to Woodson and, in all likelihood, 49ers linebacker Julian Peterson. Both are free-agents-to-be and 2005 franchise players who would command 20 percent raises over last year's salaries, thanks to a stipulation in the soon-to-expire collective bargaining agreement

Notice how the National Media doesn't point out the impact of no CBA extention is haven't on team not wearing burgundy and gold.

Yet JG and "the Danny" will keep his roster in tack, with ALL key players under contract. Other teams are forced to use one tag or another and tie up cap space (also not knowing what that number will be) before free agency even starts. The Colts re-signed Wanye and the media reported it then added they won't use the Franchise tag on James, truth be told - they CAN"T use the tag on him. They were projected to be right up against the projected cap number (see how speclative this is ) and just added $7M to that number ($13.5M SB/4 yrs. + $4M Sal in '06).

Until I see reports that use the same numbers and look each teams situation the same (if it were to happen we'd see the Skins are in better shape than a lot of teams) I'll call the National Media BIAS against the Redskins.

[PulpExposure]

That's hilarious. That article you were quoting, 1niksder...

A good case in point is Lavar Arrington, whose base salary in 2006 jumps from $545 K to $2 M. And that doesn't even count a huge roster bonus he is set to earn.

OH NOS HIS SALARY JUMPS ALL THE WAY TO TWO MILLION!!!!

[hkHog]

This guy is usually OVERWHELMINGLY optomistic but this article has worried me quite a bit. For a long time I have said that the whole "cap hell" issue is nonsense but that was before the CBA needed to be extended. Check this out:

Cap-tastrophe?
--------------------------------------------------------------------------------

Rich Tandler
WarpathInsiders.com Feb 20, 2006

Tandler's Redskins Blog Ver. 02.20.06--The Redskins gambled when they signed some of their key players over the past few years. They may be on the verge of losing that gamble and the team could have a decidedly different look in 2006.

You can reach Rich Tandler by email at WarpathInsiders@comcast.net

Over the weekend, two almost identical articles by Pete Prisco of CBS Sportsline and Len Pasquarelli of ESPN.com came to almost identical conclusions in regards to the Redskins salary cap situation. They both claimed to have talked to a trio of cap experts from various places and these experts told them that the Redskins were in a cap situation that was so untenable that they may be forced to make drastic cuts to get under the cap. The Redskins, they say, may be forced to play the 2006 season with 15-20 rookies making the minimum in order to get in compliance with the cap rules. There would have to be an unprecedented bloodbath in regards to the roster.

As those two writers are notorious for their frequent anti-Redskins biases, their pieces were immediately met with derision from all around Redskins nation. “There they go again,” was the common refrain.

Well, this observer, accused of being a homer far more often than he’s called anti-Redskins, is here to tell you that, as painful as it may be to say it, what Pete and Lenny said is by and large true. If there is not extension of the collective bargaining agreement (CBA) before the free agency period begins on March 3, the Redskins will officially take up residence in the dreaded cap hell. The Redskins took a gamble and, as of right now, it looks as though they may well lose it.

The gamble they took was to insert roster bonuses into the contracts signed by Marcus Washington, Clinton Portis, and others. Since these bonuses are not guaranteed, they all count towards the 2006 salary cap, pushing it up to a number that is some $20 million over the limit, which will likely come in at $95 million.

The Redskins had to structure those deals in that way in order to make them acceptable under the current collective bargaining agreement between the NFL and the NFL Players Association. The gamble that they took was that the CBA would be extended and revised before the ’06 free agency season began. That would allow them to guarantee the roster bonuses for those players, meaning that they could spread out the impact over the life of the contract. That would, for example, lower Shawn Springs’ cap number by some $2.3 million, Portis’ by $2.25 million. The cap savings by this accounting procedure would total $15 million. The rest of the overage could easily be handled by cutting some fringe players and restructuring some other contracts.

It was a reasonable gamble at the time the contracts were drawn up. The NFL and the NFLPA have never before gone to the brink of an uncapped year, which is what 2007 would be under the current CBA, before extending the agreement. However, we find ourselves about 10 days before free agency starts and a CBA extension does not appear to be imminent. In Sunday’s Washington Post an NFLPA representative said that the chances of reaching a deal were not very good. That doesn’t mean that it can’t happen or won’t happen. It means that every minute that passes without a new agreement pushes the Redskins a minute closer to entering cap hell.

Without a CBA extension the Redskins will need some very creative measures, some very painful decisions and/or some unprecedented cooperation by many players to get under the cap. There will be an article here Tuesday on WarpathInsiders.com that will look at some creative options. Right now, though, let’s focus on the latter two.

One of the problems with cutting players is that with the contracts structured as they are and the fact that most of the contracts are pretty new, there isn’t much money to be saved in releasing a lot of players with big camp numbers. For example, LaVar Arrington counts about $12 million towards the ’06 cap, but releasing him would result in a slightly higher cap charge than that because of uncharged money already paid to him. It’s like being upside down on a car loan, when the car is worth less than the payoff amount. Cutting Arrington would the put Redskins further away from the goal of being able to get under the cap. The same is true of such players who might be considered expendable in a crisis such as Mark Brunell and Davis Patten.

Now, to be sure, there are players that the team could release that actually could save money. Some of these players are ones that the Redskins would rather not cut such as Marcus Washington, Ladell Betts, Jon Jansen and Joe Salave’a. However, the Redskins could cut those four plus Taylor Jacobs, Renaldo Wynn, Pierson Prioleau, Phillip Daniels, James Thrash, Cory Raymer, John Hall, Patrick Ramsey, Walt Harris, and Matt Bowen and still be about $8 million shy of being able to make it under the cap.

To realize the maximum cap savings, which are obviously necessary, these players would have to be replaced with rookies earning the minimum salary. Thus the “15-20 rookies” alluded to by Prisco and Pasquerelli.

The Redskins will not release all of the players on the list above. To make up the difference and to clear the remaining cap space they will have to restructure some contracts and, in the process, ask some players to give back real money.

This doesn’t happen very often. Usually when you hear about a player redoing his contract to help the team create cap room he doesn’t give up a dime. It’s usually just a matter of deferring something or guaranteeing all or part of a salary to spread out the cap hit. The player is not, as many believe, “taking one for the team” when he cooperates in such restructurings.

But it appears that if the Redskins are going to be able to scrape under the cap without losing some key players in the prime of their careers some players are going to have to take a pay cut, plain and simple. And if they don’t, well, the Redskins will enter another level of hell altogether.

Again, more on that in an article here on Tuesday. The point here is to tell you that, without a CBA extension, Chicken Little (and Pete and Lenny) will be right. The sky will be falling. A whole slew of players that have been solid contributors will be gone. There will be so many young players on the roster that the team mascot will have to be changed to Barney. The Redskins won’t be able to afford any free agents; heck, they won’t be able to afford cab fare for a free agent from Dulles to Redskins Park.

There is the possibility that a CBA extension will get done and none of this will have to happen. It’s very difficult to assess the chances of that happening; it may not look good now but a breakthrough in the negotiations could occur at any time. But if it doesn’t, well, things will get ugly. If you’re a Redskins fan, keep your fingers crossed, hang a horseshoe in a appropriate spot, be on the lookout for four-leaf clovers, or whatever you do to try to bring on good luck. This isn’t typical media anti-Redskins spin.

It’s the real thing.

http://redskins.scout.com/2/501221.html

Compare this to an article written a couple months ago on the same website that shows how EASY it would be for us to trim our cap WITH a CBA extension in place.

Trimming the Cap--How to Get It Done
--------------------------------------------------------------------------------

Robert Large
WarpathInsiders.com Jan 17, 2006

Given that the Redskins will now be looking for some salary cap room in 2006 to improve the player personnel on the team, our resident capologist looks at the major moves Washington can make to create some cap room.


At present the Redskins 2006 cap number is $113.8m (representing 48 players including one ERFA and one RFA), a figure that is $18.8m over the predicted 2006 NFL salary cap of $95m.

1. Guaranteeing Roster Bonuses
Lavar Arrington LB – save $4.9m
Marcus Washington LB – save $1.9m
Cornelius Griffin DT – save $1.9m
Shawn Springs CB – save $2.3m
Clinton Portis RB – save $2.3m

Other smaller amounts from various players – save $1.7m

2. Releasing Players Outright
Matt Bowen SS – save $2.0m
John Hall K – save [BODY].8m
Walt Harris CB – save $2.0m
Cory Raymer C – save $1.0m

3. Trades
Patrick Ramsey QB – save $1.7m (and receive draft pick compensation)

4. Retirements
Brandon Noble DT – save $1.7m

5. Release and resign deals with veterans
James Thrash WR – cut and resign to vet minimum deal plus the $25k signing bonus – save [BODY].4m

6. Restructuring contracts
Randy Thomas G – basic restructure – save $2.2m
Jon Jansen OT – basic restructure – save $2.3m
Mark Brunell QB – basic restructure – save $2.4m

TOTAL SAVINGS (this list only) - $31.5m

This is by no mean an exhaustive list, but just the major savers.

http://redskins.scout.com/2/490049.html

There was another excellent Washington Post article that described how easily the 'Skins could get under the cap with a new CBA in place. However, this CBA really needs to get sorted out. It's bad news. For once I'm really worried.

[1niksder]

Rich got this all wrong...

I think he has been hanging out at CNPD to much

If you are wondering about where the Redskins are or what’s going on with the cap and how it relates to the Skins here are some threads that touch on just about every subject (if it’s Redskin related)

Players we can cut/trade to save cap space


Players whose contracts can be re-worked


Lavar’s contract


What happens with no CBA


More speculation about what the Redskins will do


Rule changes if there is no CBA

BUT LOOK AT THIS

Here’s something I played with because I was bored and wanted to see if it could be done.

1niksder versus Lavar Arrington’s Monster Contract.

Lavar signed a 8 years/$67.7 million contract with a $15.5 million signing bonus back in 2003 (He had re-worked his rookie deal).

He’ll have to do it again….

Currently Lavar has been paid all of his signing bonus and there is roughly $50.7 million left with 6 years remaining. None of this is guaranteed but the prorated signing bonus has $12.8 million left to be accounted for, the 2006 hit will be at least $5,096,000 no matter what.

This would be the starting point in the contract negotiations if there were a CBA extension, but there isn’t so the reality is what would Lavar be due over the next 4 years?

The current contract reads:
He is due $24.4 million after 2009 so we can chop that off what he is due (in all honesty did he really think he’d be paid that much, that late in his career? So that brings the number down to about $26.4 million to work with. But Lavar’s agent will not let $24M go without a fight. $15M was bonus money he’d only earn if he were on the team – give half, bringing the number up to lets say $34 million.

With the 30% rule kicking in because there is no CBA ext. we will have to bump up his 2006 salary about a mil. from $545K to around $1.5M in 2006 then max it out over the next three years ($1.95M in 2007, $2.54M in 2008 and $3.3M in 2009). That leaves about $24 million to squeeze in. Plus LA has that big $6.5 million bonus that the talking heads says will kill us. Roll all that up and divide it in half and you have $15.25 million, give him that as a signing bonus and split the rest up over the length of the contract as roster bonuses of $5.08M per year.

What do all those numbers mean?

Lavar’s cap hit in 2006 = $12,046,000.00

Lavar’s cap hit in 2006 meets 1niksder after a few brews (and then a few more brews) = $ 5,315,000.00

Final outcome = Cap savings of $6,731,000.00 for the Redskins by restructuring Lavar’s contract.

Lavar was looking at $13,450,000.00 (this year including roster bonuses, base salary and the bonus that sends us to he l l ) now he’ll pocket over $22 million..

It’s a numbers game… This weekend I’m buying a case of Yak and I’ll free up enough Cap space to buy the Jets

[1niksder]

That's hilarious. That article you were quoting, 1niksder...

A good case in point is Lavar Arrington, whose base salary in 2006 jumps from $545 K to $2 M. And that doesn't even count a huge roster bonus he is set to earn.

OH NOS HIS SALARY JUMPS ALL THE WAY TO TWO MILLION!!!!

Yeah... but I'm tired of hearing it. It not only old news it's outdated or not time sensitive at all. They should give the reader some credit. Lavar is due $545K in base salary this year and that jumps to $2M next year (Next year). The mention of the $6.5M bonus would have been just if he had added some substance to the quote (obviously he shared all he knew about it )

[hkHog]

Rich got this all wrong...

I think he has been hanging out at CNPD to much

If you are wondering about where the Redskins are or what’s going on with the cap and how it relates to the Skins here are some threads that touch on just about every subject (if it’s Redskin related)

Players we can cut/trade to save cap space


Players whose contracts can be re-worked


Lavar’s contract


What happens with no CBA


More speculation about what the Redskins will do


Rule changes if there is no CBA

BUT LOOK AT THIS

Here’s something I played with because I was bored and wanted to see if it could be done.

1niksder versus Lavar Arrington’s Monster Contract.

Lavar signed a 8 years/$67.7 million contract with a $15.5 million signing bonus back in 2003 (He had re-worked his rookie deal).

He’ll have to do it again….

Currently Lavar has been paid all of his signing bonus and there is roughly $50.7 million left with 6 years remaining. None of this is guaranteed but the prorated signing bonus has $12.8 million left to be accounted for, the 2006 hit will be at least $5,096,000 no matter what.

This would be the starting point in the contract negotiations if there were a CBA extension, but there isn’t so the reality is what would Lavar be due over the next 4 years?

The current contract reads:
He is due $24.4 million after 2009 so we can chop that off what he is due (in all honesty did he really think he’d be paid that much, that late in his career? So that brings the number down to about $26.4 million to work with. But Lavar’s agent will not let $24M go without a fight. $15M was bonus money he’d only earn if he were on the team – give half, bringing the number up to lets say $34 million.

With the 30% rule kicking in because there is no CBA ext. we will have to bump up his 2006 salary about a mil. from $545K to around $1.5M in 2006 then max it out over the next three years ($1.95M in 2007, $2.54M in 2008 and $3.3M in 2009). That leaves about $24 million to squeeze in. Plus LA has that big $6.5 million bonus that the talking heads says will kill us. Roll all that up and divide it in half and you have $15.25 million, give him that as a signing bonus and split the rest up over the length of the contract as roster bonuses of $5.08M per year.

What do all those numbers mean?

Lavar’s cap hit in 2006 = $12,046,000.00

Lavar’s cap hit in 2006 meets 1niksder after a few brews (and then a few more brews) = $ 5,315,000.00

Final outcome = Cap savings of $6,731,000.00 for the Redskins by restructuring Lavar’s contract.

Lavar was looking at $13,450,000.00 (this year including roster bonuses, base salary and the bonus that sends us to he l l ) now he’ll pocket over $22 million..

It’s a numbers game… This weekend I’m buying a case of Yak and I’ll free up enough Cap space to buy the Jets

Yeah, I get what you're saying. HOWEVER, all of that relies on there being a CBA in place. THE PROBLEM IS THAT WITHOUT THE CBA WE ARE SCREWED! If there is one we will meet tha cap easily. But if there isn't our team will be utterly decimated!

[PulpExposure]

Yeah, I get what you're saying. HOWEVER, all of that relies on there being a CBA in place. THE PROBLEM IS THAT WITHOUT THE CBA WE ARE SCREWED! If there is one we will meet tha cap easily. But if there isn't our team will be utterly decimated!

I understand the worry. But the NFL is just so profitable right now. And the Players Union & Tags get along well. I think everyone knows it's in their best interests to have a CBA in place before free agency.

No free agent will get a big contract otherwise.

[1niksder]

Yeah, I get what you're saying. HOWEVER, all of that relies on there being a CBA in place. THE PROBLEM IS THAT WITHOUT THE CBA WE ARE SCREWED! If there is one we will meet tha cap easily. But if there isn't our team will be utterly decimated!

WRONG... The post takes into account that there is no CBA extenstion. If there were one then the restructure would be for at least 6 years to give MORE cap relief but without the extenstion the max you can spread out bonus money is four years

[SkinsFanInHawai'i]

1niksder doesn't seem to be worried too much about us getting under the cap and having some room to work with.

I don't think anyone can argue that he doesn't know the most about he cap situation, especially the Redskins cap.

So I don't think there is any reason to worry.

[1niksder]

1niksder doesn't seem to be worried too much about us getting under the cap and having some room to work with.

I don't think anyone can argue that he doesn't know the most about he cap situation, especially the Redskins cap.

So I don't think there is any reason to worry.

I'm not worried because it's not my job to deal with it.

But all these un-named experts and League sources have nothing else to talk/write about, so it's "What came we put out there about the Redskins?"

KC, NYJ (before they cut 7 today),the Faiders, and Denver are all worst off than the Skins and they all have big time players they need to try to get back under contract. We've have Clark and Royal who started and will be free agents.

No one is talking about how the Skins have there top players under contract during this uncertain time... or how the Skins are still coming up in all the big time free agent movement rumors starting Mar 3. No the only thing we hear/read is how we'll be fielding a bunch of rookies and UDFA next year.

Without a CBA extention you can still make deals, you can rework contracts. What you don't get is ...

to push Cap hits forward... (no need - we took care of Coles this year)

to spread Signing Bonuses over the length of a contract... you can spread it out over the first four years.

30% rule on increase in salary pass 2006... "the Danny" has been known for backloading contracts with voidable tyears. This helps in this time of not knowing - a.what the cap will be and b.will 2007 be uncap (if so the rules will change)

The 30% rule applies to salaries and "the Danny" hasn't paid big salaries. This means he can raise and convert base salary into Signing Bonus and spread it out for 4 years. Of course once there is a new CBA the process will start all over, and the sky will be falling again.