SALARY CAP dept. ~ ~ ~

[kelly]

How the Jets Can Plot a Course to Salary Cap Flexibility

By extending contracts of some older veterans or cutting some expendable players, Jets could trim $11 million from current cap figure

 

The Jets begin organized team activities Tuesday without their starting quarterback from last year’s 10-6 season and pressed up so tightly against the NFL’s salary cap that they barely can find room to sign their draft picks.

General manager Mike Maccagnan’s standing offer to free agent Ryan Fitzpatrick is reportedly worth about $8 million. And since he ideally needs a few million for emergency moves once training camp kicks off in August, the Jets could stand to trim about $11 million from their current cap number.As difficult as that may sound, there are two ways to do this. The Jets can either extend the contracts of some older veterans or cut some of their expendable players.If Fitzpatrick does return to the team, that would make Geno Smith a prime candidate to be released because Bryce Petty and especially rookie Christian Hackenberg need practice reps. Cutting Smith would save a little over $1 million, according to OverTheCap.

Kicker Nick Folk was easily replaced in the lineup last year after a groin injury and cutting him would save $2.75 million. Disappointing tight end Jace Amaro, who missed all of last year, and little-used cornerback Dexter McDougle could be jettisoned for about $1.4 million more of savings. Running back Zac Stacy averaged just 2.9 yards on 31 carries last year and is fourth on the depth chart. He’s also paid relatively little money, however.

Those cuts would leave the team about $5 million short, which is where starting right tackle Breno Giacomini comes in. Ranked 69th out of 76 offensive tackles graded by ProFootballFocus last season, releasing Giacomini after June 1 saves exactly $5 million. The question is whether one of Giacomini’s backups would be even worse.

Of course, the reported $8 million offer to Fitzpatrick wasn’t enough to bring him back as yet. Plus the Jets have to pay minimum salaries to whoever replaces any cuts. So the team may also have to extend older, high-priced players like wide receiver Brandon Marshall ($9.5 million cap hit this year) or center Nick Mangold ($8.6 million), both 32. A long-term deal with defensive lineman Muhammad Wilkerson would dramatically lower his current $15.7 million charge as a franchise player, but that looks unlikely given the way negotiations have gone over the last two offseasons.

>    http://www.wsj.com/articles/how-the-jets-can-plot-a-course-to-salary-cap-flexibility-1463960468

[kelly]

A look at what's happening around the New York Jets :

~ ~   10. Cap update : The Jets have $3.6 million in cap space, according to NFLPA records. When first-round pick Darron Lee signs, they'll be left with about $2.3 million.

rest of above article  : 

>     http://espn.go.com/blog/new-york-jets/post/_/id/60610/jets-ryan-fitzpatrick-standoff-could-use-a-word-from-ron-burgundy

[jamesr]

Not really a great article when "lowering your cap number" is solved by cutting players ... you still need to replace them!

Expected more in terms of redoing contracts, how much it could save etc. 

[kelly]

@RichCimini W/ all the Mo talk. Who is the next #Jet to get paid? Calvin Pryor-Harrison Smith contract. Sheldon Richardson? Who?

1:38 PM - 10 Jun 2016

@RichCimini: This is a very good question. In 17 months as the Jets' general manager, Mike Maccagnan has yet to re-up with a player at the end of his first NFL contract. Allow me to clarify that a bit. In 2015, he re-signed running backBilal Powell (one-year contract), but it wasn't a big-money deal. (He subsequently signed Powell for another three years.) You're asking about potentially significant deals, such as safety Harrison Smith re-upping with theMinnesota Vikings.

Muhammad Wilkerson should be the next Jets player to get paid, but it doesn't appear that will happen any time soon, if ever. Other than Wilkerson, there's no sense of urgency in 2016 to lock up any of their core players. That's a good news/bad news situation. It's good because, with no key free agents to sign (other than Wilkerson and Ryan Fitzpatrick), the Jets will have plenty of salary-cap flexibility in 2017. The bad news is they currently don't have anyone worthy of a long-term extension. Some teams are doing deals with players from their 2012 draft class, but the Jets' Class of 2012 is wiped out, meaning no one is left on the roster.You raised the possibility of Sheldon Richardson. The Jets have his rights through 2017, as they recently exercised his fifth-year option, so -- again -- there's no rush. If he stays out of trouble and plays well this season, it wouldn't be surprising if they try to hammer out a long-term commitment next offseason. It might be a Richardson-or-Wilkerson choice for the Jets because it's hard to imagine them doling out two mega contracts for guys in the same position group. Eventually, they'll have to make a decision because they can't keep stringing it out with the franchise tag.

You also mentioned Calvin Pryor, certainly an ascending player who will land a big deal some day. By rule, the Jets can't do anything with a player's contract until he completes three seasons. That takes Pryor out of the mix for 2016. They'll have his rights through 2018, assuming they pick up the fifth-year option.If the Jets are smart, they'll capitalize on the window that will open next year. They will have a lot of cap space and no absolute, must-keep free agents, which makes it the perfect time to be proactive and sign key players -- like Wilkerson or Richardson, maybe Pryor (if it's a team-friendly deal) and maybe Marcus Williams (if he continues to develop).

The bottom line is, the Jets don't have a ton of first-contract talent that needs to be locked up immediately. And that's too bad.

>     http://espn.go.com/blog/new-york-jets/post/_/id/60861/if-not-mo-wilkerson-which-jets-player-will-score-the-next-big-bag-of-money

[kelly]

The full details are now available for Jets defensive end Muhammad Wilkerson's new five-year contract. You can check them out here. 

For 2016, Wilkerson's salary cap figure is $10 million — a savings of $5.701 million from what he would've carried if he played under the franchise tag.Before the Wilkerson deal, the Jets had $3.425 million in cap space, according to NFLPA records. They now have $9.126 million in cap room — sort of. 

Will that be enough to re-sign quarterback Ryan Fitzpatrick? 

Well, consider that the Jets' offer to Fitzpatrick included $12 million in 2016. Also consider that the Jets still need to sign first-round draft pick Darron Lee, who will count about $1.858 million toward their 2016 cap. The Lee contract will knock the Jets' cap room number down to $7.268 million. And teams don't like to spend all the way down to zero cap room. They like to keep $2 million or $3 million around in case an impactful midseason injury necessitates a free agent signing. So in reality, that $7.268 million cap room number is more like $5.268 million or $4.268 million. 

OK, so presuming a $12 million cap figure for Fitzpatrick in 2016, that means the Jets still must find anywhere from $6.732 million to $7.732 million in additional cap space, in order to fit Fitzpatrick under the cap.They were fully prepared, even before the Wilkerson contract, to restructure other contracts (moving money around for salary cap purposes), in order to re-sign Fitzpatrick. The Wilkerson deal now gives them $5.701 million in additional wiggle room, so they won't have to do as much restructuring.But it looks like they'll still have to do some. And it appears the primary candidates would be wide receiver Eric Decker and center Nick Mangold.

Decker is scheduled to carry an $8 million salary cap figure in 2016 — $6.5 million of which is his base salary. Some of that can be converted into a signing bonus, to lower his base salary and 2016 cap number. Of course, that would boost the cap numbers for Decker's final two years (2017 and 2018). Currently, he is scheduled to carry cap numbers of $8.75 million and $9 million in those years. But remember, the NFL's salary cap is expected to make a big jump again next offseason, so tacking money onto an $8.75 million cap hit might not sting badly. 

As for Mangold, he has an $8.6 million cap hit in 2016 — $5.6 million of which is his base salary. The 2017 season is scheduled to be the final year of Mangold's contract, and he has no dead money attached to that year. So the Jets could conceivably cut him without taking a cap hit. Of course, he's still good enough that they'll probably want to retain him for 2017. 

Mangold's cap figure in 2017 is scheduled to be $9.075 million. As with Decker, any conversion of 2016 base salary — in order to create more cap space for Fitzpatrick — would result in that $9.075 million number increasing in 2017. Remember, Wilkerson is already on the books for an $18 million cap figure in 2017. And cornerback Darrelle Revis, if he remains with the Jets and doesn't take a pay cut, would count $15.3 million against their cap. That's $33.3 million total. 

The NFL's per-team salary cap this year is $155.27 million, an increase of $11.99 million from 2015. Overthecap.com is currently projecting a $166 million cap in 2017. So the Jets can surely afford to move some money around — perhaps with Decker and/or Mangold — in order to create room for Fitzpatrick this year.But the biggest question remains: Is Fitzpatrick willing to re-sign with the Jets at their current offer? And if not, would the Jets be willing to boost their offer, given the $5.701 million in cap space they just got from the Wilkerson deal ? 

>     http://www.nj.com/jets/index.ssf/2016/07/what_is_jets_salary_cap_situation_after_mo_wilkers.html#incart_river_index

[kelly]

— The Jets used some clever accounting in order to fit quarterbackRyan Fitzpatrick's contact under their 2016 salary cap.Before the Fitzpatrick contract — initially reported as a one-year, $12 million deal — the Jets had about $7.268 million in salary cap space.So you had to wonder how the Jets would fit Fitzpatrick in. Perhaps they would need to restructure contracts, to create more cap space. 

As it turns out, they didn't need to do that. That's because Fitzpatrick's deal is technically for two years. He got a $10 million signing bonus and a $2 million base salary in 2016. So his 2016 salary cap figure is $7 million — which fits under the Jets' cap.Fitzpatrick's contract is voidable for 2017, which means the Jets will only be on the hook, next season, for a $5 million dead money cap hit — his prorated signing bonus. It is unclear what base salary figure the Jets attached to Fitzpatrick's deal for 2017. But it doesn't matter, because that is a hollow, non-guaranteed number.

It is probably a very large number, to force the Jets to void the deal. Either that or there is a player voiding option in the deal, which lets Fitzpatrick control the voiding process. Either way, the contract is going to void next offseason.These contract details were first reported by The MMQB's Albert Breer.Fitzpatrick said after Thursday's first training camp practice that his contract's remaining year is scheduled to void five days after the Super Bowl. 

The NFL's salary cap is expected to be about $166 million next season — it is $155.27 million this season — so a $5 million dead money hit isn't a huge deal.Even if Fitzpatrick signs a new contract with the Jets next offseason, after the deal voids and he becomes a free agent, that $5 million dead money cap hit would remain on the Jets' books for 2017. So it's not going away, no matter what.

Essentially, Fitzpatrick has a one-year deal. But for cap management purposes, the Jets technically made it a two-year deal that voids next offseason. 

>    http://www.nj.com/jets/index.ssf/2016/07/how_jets_fit_ryan_fitzpatrick_under_salary_cap_per.html#incart_river_index

[kelly]

The two-year contract that quarterback Ryan Fitzpatrick just signed with the Jets is essentially a one-year contract. That much you know.But here's exactly how the process will work, with voiding Fitzpatrick's 2017 contract year: Five days after the Super Bowl, the contract will automatically void if Fitzparick is still on the Jets' roster. No action needs to be taken by the Jets or Fitzpatrick.

That's why it doesn't really matter what Fitzpatrick's (fake) base salary is in 2017. For what it's worth (nothing), that base salary is listed as $2 million — the same base salary he is making this season.

Fitzpatrick's (fake) base salary in 2017 didn't need to be prohibitively high, to force the Jets to void his deal next offseason, because the deal is going to automatically void. Which makes things simpler.Those contract details were provided to NJ Advance Media by a league source who has seen the details.The Jets gave Fitzpatrick a $10 million signing bonus, so this is actually a one-year, $12 million contract.Even if Fitzpatrick re-signs with the Jets after his contract voids next offseason, his $5 million dead money salary cap figure (the prorated signing bonus) will remain on the Jets' books in 2017, as a cap hit.

Fitzpatrick's cap hit this year is $7 million. Because of some clever accounting, with the voidable year, the Jets were able to fit Fitzpatrick under their 2016 cap without restructuring other players' contracts.Earlier this offseason, the Jets offered Fitzpatrick a three-year, $24 million contract that included $12 million in Year 1 and $15 million in total guaranteed pay. Fitzpatrick bet on himself by taking a one-year deal, but he can still make $15 million. His deal includes $3 million in incentives. The incentives are tiered — a combination of his playing time and making the playoffs, along with potential bonus money related to an AFC Championship Game or Super Bowl run.

>     http://www.nj.com/jets/index.ssf/2016/07/ryan_fitzpatricks_jets_contract_heres_exactly_how.html#incart_river_index

[kelly]

~ ~  2. Disappearing cap room : The recent rash of signings (Fitzpatrick,Muhammad Wilkerson and Darron Lee) has left the Jets with only $1.5 million in cap space, according to NFLPA records. They'll have to carve out more room before the regular season because they'll need money for a practice squad and likely injury replacements. Also remember, only the top 51 count on the current cap; it jumps to 53 for the regular season.

rest of above article : 

> http://espn.go.com/blog/new-york-jets/post/_/id/61623/an-inside-look-at-the-out-in-ryan-fitzpatricks-contract-with-jets

[kelly]

Predicting NFL teams that will face a salary-cap crunch

 

This summer, the NBA's salary cap for the upcoming season increased by 34.5 percent overnight. The result? Free agents saw their salaries skyrocket, and the Golden State Warriors had just enough cap space to sign Kevin Durant. The league fundamentally changed the way it operates by virtue of its economics.The NFL hasn't undergone quite as staggering a change, but its salary structure has also been rising considerably. After the cap basically stayed stagnant for three years following the 2011 lockout, it has risen steadily ever since. The cap was at $123 million in 2013, but after picking up about $10 million in each of the ensuing three seasons, the 2016 cap figure came in at $153.3 million. That's a 25 percent increase over three years.

As a result, most teams are in comfortable cap situations. We've rarely seen the sort of true "cap hell" that came for organizations like Baltimore and Tennessee in the previous decade, when they needed to shed talent just to survive. Teams have also gotten better at managing the cap and structuring contracts to maintain flexibility. As long as the cap continues to rise at this rate -- perhaps a dangerous prediction -- most organizations will be able to manage their cap effectively.And yet, there are teams that clearly aren't able to put together the sort of roster they want because of their balance sheet. Their cap situation prevents them from signing free agents to fill holes, adding badly needed depth or retaining talented young contributors. The impact isn't always a Durant-sized void, but it is meaningful. Consider that theDenver Broncos won the Super Bowl with a ton of help from star pass-rusher DeMarcus Ware, who the Cowboys had to cut because of their cap woes in 2014.

These cap situations all get fixed -- it's not as if a team in bad shape would opt to sit out a season instead of getting under the cap -- but the corrections are painful. They're also worth monitoring a year in advance. Let's run through those teams that have cap issues coming, identify the moves they're likely to consider making to create space and figure out which players might be under extra pressure to perform in 2016.

In alphabetical order, here are the league's most troubling cap situations. This uses salary data from Spotrac and assumes a $165 million cap (before any rollover funds) for 2017.

~ ~ 

New York Jets

Commitment for 2017 : $170.6 million
Free agent : Ryan Fitzpatrick

Jets GM Mike Maccagnan inherited a clean salary-cap slate from ousted predecessor John Idzik and proceeded to spend wildly to improve his defense. It worked, but the Jets spent this offseason with limited options before finally coming to terms with Muhammad Wilkerson on a long-term extension and signing Fitzpatrick to a one-year, $12-million deal. The Jets still need to make some moves to clear out cap space before the season starts, but they've constructed their roster for 2016.

In 2017, though, things are only going to get more difficult. They were able to get Wilkerson and Fitzpatrick signed by giving Wilkerson a five-year deal which actually reduced his 2016 cap charge from the franchise tag figure of $15.7 million to $10 million. His cap hit spikes to $18 million next year and stays between $18 million and $20 million for the remainder of his deal. That $170.6 million commitment for 2017 doesn't include an obvious option at quarterback, and it also includes the final year of deals for Brandon Marshall ($7.5 million) and Sheldon Richardson($8.1 million), each of whom would likely expect a short-term raise as part of a long-term deal, given what they could get on the free market.

So, what could the Jets do ?

 

• Cut Ryan Clady. The Jets have an option on Clady's 2017 season at $10.5 million with only $500,000 in dead money on their cap; they could create $10 million by releasing the former Broncos star, a move that would then leave them with a huge hole at left tackle. This will likely be addressed one way or another. If Clady plays well, the Jets will use the leverage of the one-year deal to offer a longer contract with a smaller cap hit in 2017. If he plays poorly or gets hurt, the Jets will move on and free up the cap space.

•  

• Release David Harris. The run-thumping linebacker was part of the league's best run defense a year ago, but the Jets will owe him $6.5 million in the final year of his deal, which could be a lot for a guy who will be in his age-33 campaign. If he slips this year, Harris looms as a cap casualty. The Jets could also cut Breno Giacomini and save $4.5 million or go after inside linebacker Erin Henderson and free up $2.7 million.

•  

• Extend or release Nick Mangold. After basically forcing left tackleD'Brickashaw Ferguson into retirement this offseason, the Jets could force their longtime center out the door next. Mangold's $9.1 million cap hit next year would be the second-largest of any center in football; the Jets would likely want to give Mangold an extension which decreases the hit, ask Mangold to take a pay cut or move on altogether.

•  

• Restructure Wilkerson's contract. Turning base salary into a signing bonus is a classic mistake teams with cap issues make, but the Jets might not have a choice if they want to sign a veteran quarterback. If they convert $12 million of Wilkerson's $14.75 million base salary into a signing bonus, the Jets would create $9 million in cap space next year while adding $3 million to the books for each of the subsequent three seasons. It's no sweat off of Wilkerson's back, as he would just get already-guaranteed money a little earlier than otherwise expected. The only problem would be if the Jets wanted to release or trade Wilkerson before the end of his contract, at which point the leftover, unaccounted-for years of the bonus would accelerate onto their cap.

rest of above article : 

> http://espn.go.com/nfl/story/_/page/BarnwellNFLPreview160801/predicting-nfl-teams-facing-salary-cap-crunch-new-orleans-saints

[Sperm Edwards]

Clady is not $10.5M. Or, he is and he isn't. He's only $10.5M if they don't want him anymore, in which case it's really just the $500K of dead money and there's nothing to think about. If Clady plays this year - I believe even if he plays badly - he gets a $3M bump. It would be a 2016 NLTBE incentive, but all $3M of it would hit next year. I don't think any of it is guaranteed - i.e. it's an escalator more than a bonus - but now I can't remember offhand. Also if he quickly heads to IR shortly after the season begins, he not only wouldn't make the $3M bump, but there's no way the team would even entertain keeping him at $10M in 2017, so it's also not $10.5M; it's $500K with a phantom/temporary $10M additional that everyone would know he'll never see).

- If it's an escalator it's meaningless, as a cap-strapped team isn't likely paying Clady $13M for 1 year with a $13.5M cap hit. The cap number is $3M higher, but cutting him would then clear $13M instead of $10M. Distinction without a difference in the end.

- If it's a true incentive, then that's different. Then it's another $3M that hits 2017 whether we keep or cut him. So then it's $13.5M and the Jets are locked into $3.5M of that on the cap. 

Basically, if Clady plays out the season (or plays enough of the season to hit his benchmark), his $3M bump makes the "commitment for 2017" closer to $174M than $171M.

[kelly]

5. Money matters : The Jets have only $1.2 million in salary-cap room, per NFLPA records -- the lowest in the league. They’ll have to create more space in the coming weeks because they need money for a practice squad (about $1 million), an additional two players on the cap (currently, only 51 count) and potential injury replacements. Ideally, you’d like to go into the season a few million under the cap -- fudge money, as Bill Parcells used to call it.

There’s not much fat on the roster, in terms of possible cap casualties. I'm curious to see what happens with Breno Giacomini, who hasn't practiced because of a back injury. The team can save $4.4 million by cutting him, but he's the only experienced right tackle.

rest of above article : 

> http://www.espn.com/blog/new-york-jets/post/_/id/62267/memo-to-jets-the-more-the-merrier-doesnt-apply-to-quarterbacks

[kelly]

The Jets have restructured cornerback Buster Skrine's contract to create $2.5 million in salary cap space for 2016, a league source told NJ Advance Media. 

The Jets, pressed for cap space, gave Skrine a $3.75 million signing bonus, while dropping his 2016 base salary from $6.5 million to $2.75 million. 

His old 2016 cap number was $7.754 million. It is now $5.254 million. 

Skrine, 27, is entering Year 6 in the NFL. 

Skrine, who signed with the Jets before last season, is under contract through 2018. His salary cap and dead money figures for 2017 and 2018 both have now increased, because of his prorated $3.75 million signing bonus.For the Jets, that's the trade-off to the immediate cap savings. Skrine's cap numbers in both 2017 and 2018 will be $8.5 million, while his dead money figures will be $5 million and $2.5 million in those seasons. 

His cap numbers in each of the next two seasons are now $1.25 million higher, because of the prorated signing bonus ($3.75 million divided by three). His dead money figure in 2017 is now $2.5 million higher, and his dead money figure in 2018 is now $1.25 million higher. 

Skrine's base salaries in 2017 and 2018 — $6 million each year — are not guaranteed.But Skrine isn't making any less money overall in 2016, because the $3.75 million signing bonus makes up for the reduction in his 2016 base salary. This is just a simple contract restructuring, for cap purposes.Skrine serves as both the Jets' starting outside cornerback in their base defense, opposite Darrelle Revis, and their starting slot corner in their nickel defense — which is the role he had for them last season. 

>     http://www.nj.com/jets/index.ssf/2016/09/jets_restructure_buster_skrines_contract_to_create.html#incart_river_index

[kelly]

Rich CiminiESPN Staff Writer 

Jets GM Mike Maccagnan isn't a fan of restructuring contracts, but he's so desperate for cap room that he re-worked Buster Skrine's deal. It saves $2.5M in cap room. All they did was convert guaranteed base salary into signing bonus. His cap charge goes from $7.75M to $5.25M. The downside: In 2017, it goes from $7.25M to $8.5M.

 

>      http://www.espn.com/nfl/team/_/name/nyj/new-york-jets