[JTB]

01/16/09 at 01:28 PM
Reply with quote #1


As of right now, 2010 will be uncapped and an extension will not be done in time for it to effect 2009. As such, here are some important impacts to new contracts. The incentive deal will play a big deal in the Collins contract for sure as the Titans would not be able to push UTBE incentives to 2010.

Salary Cap 101: The Final Capped Year

At present, due to the NFL owners opting out of the current collective bargaining agreement the league is about to enter it's last capped year under the current agreement (this assumes no deal is struck before the start of free agency which is highly unlikely). The cap in 2009 is projected to be $123m.

Therefore, there are several differences in how the league does business and how the salary cap/free agency works:

1. Prorating Of Bonuses: In 2008 bonuses given to players (signing or roster bonuses with language in the contract allowing them to be prorated) were spread over six years. In 2009 these bonuses can only be spread over five years.

2. The 30% Rule For Salaries: Any player signing a contract in 2009 can only see his base salary and incentives increase by 30% each year. For example, if a player earns $1m in base salary in 2009 for a contract signed this season, he can only see his salary increase to $1.3m in 2010. This is used to stop teams loading up contracts ready for an uncapped season (which would be in 2010 if things stay as they are). Again, it only applies to contracts signed in 2009 and the 30% rule takes into consideration base salary, likely to be earned incentives and roster bonuses. It does not take into consideration signing bonus.

June 1st: The traditional date for releases late in the off-season so the dead cap hit can be spread over two seasons has no significance this year due to 2010 being an uncapped year at present.

3. Guaranteed Salary's: Any player with guaranteed salary's in years following 2009 will have his cap hit for those amounts brought forward to 2009 hence counting on the 2009 cap. The exception is if all the 2009 salary is guaranteed. Any guaranteed contracts beyond 2012 see only 50% of that money brought forward.

4. Incentives: Usually there are two types of incentives: Likely To Be Earned (LTBE) which count against the cap in the present year and Unlikely To Be Earned Incentives (UTBE) which count on the following years cap if earned. In the past, if a team has a LTBE incentive counting on their current years cap and the player doesn't earn it, it is given as a cap credit the following year (a common cap trick a lot of teams used in the past). In 2009, all incentives count against the 2009 cap and will be credited in season once the player is assured he can not earn it (ie, if the player goes to IR, if the player misses a couple of games and cannot make a certain number of starts or snaps required for an incentive).

5. No "Deion Sanders Rule": This will not be in effect in 2009. It is basically a rule to stop more signing bonus than salary being applied to contracts and also is also in effect for contract extensions.

What does this mean for 2010 if it is an uncapped year:

1. Free Agent Designations: Instead of a player being a free agent after four years of experience that is raised to six years. Anyone with five or less years experience only has restricted free agent rights.

2. Franchise/Transistion Tags: In addition to one franchise and one transition tag, teams can name one additional transitional player in 2010.

3. The Final Eight Plan: All the teams that win their divisions in the 2009 season have additional free agent restrictions for 2010. The four teams that make the Championship games are only allowed to sign as many free agents as they lose. Teams that make the divisional rounds can sign free agents on a one of one basis too but also other free agents but with certain financial parameters.

4, Rookie Cap Pool: The NFL will make a decision if there is to be a rookie pool in 2010. They have the right to this decision under the agreement.

5, No Minimum Team Salary: Teams can spend as much or as little as they want in an uncapped year.

[Calico]

"In an uncapped year there's no floor for minimum contract amounts to be paid to players." This is a Quote from the NFLPA head. "

I did not see this in your post. Maybe he worded it wrong, but there would no longer be a minimum contract amount from years played in league(NO VET MIN ANYMORE).

[hazzed]

They better get this under control. I do not want to see an uncapped year.