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Salary Cap/Floor Situation???


Mike135
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This refers to a Cimini article, so I apologize ahead of time to those that don't like spreading his "work", but it raised a couple questions as I read it.

 

To sum it up, the Jets have to average $141mil in 2015 and 2016 just to hit the 89% mark.  With a current payroll of $84mil that equates to $57mil to spend this year.  A nice chunk of change to lock-up some of our talent and hit free agency pretty hard.

 

For those who know the ins and outs of the cap more than myself...

1.  Are these numbers accurate?

2.  Would this also mean that if Woody wanted to, instead of just spending 89% he could spend 100% of the cap?  I mean us fans pay some of the highest ticket and PSL prices in the NFL right?  Only seems fair.  In which case I think that adds roughly another $60mil to be spent between 2015-2016.  So $30mil added to each year.  Meaning roughly $87mil to spend this year alone. 

 

Or do I just not understand the cap enough and I'm way off?

 

Anyone think Woody will spend near the limit to bring in tons of FA talent and sign our young talent for a while?  Or will Woody barely reach the 89%?  Up until recently, I thought Woody was a guy who didn't have any problem spending.

 

http://espn.go.com/blog/new-york-jets/post/_/id/49456/a-look-at-how-much-money-the-jets-must-spend-and-why

 

From the moment he was hired as general manager, Mike Maccagnan has been saying he plans to be "very active" in free agency. In terms of bold predictions, it's about as daring as forecasting the color of the red carpet at the Oscars.

By rule, the New York Jets must spend a lot of money. They have no choice. There's something called the "89-percent rule," which mandates that teams spend 89 percent of their salary-cap dollars over a four-year period -- 2013 to 2016.

As you might have guessed, the Jets have some serious catching up to do. According to the NFLPA, they spent only 81.16 percent the last two years, having doled out the following cash totals:

2013: $101,549,147

2014: $106,230,662

Last year's cap was $133 million. This year's cap is expected to be $143 million or slightly higher. Next year it will increase again. So, according to the NFLPA, the Jets have to spend an average of about $141 million over the next two seasons to be in compliance with the 89-percent rule.

Right now, they have a cash payroll of $84.1 million for 2015, according to overthecap.com.

So get the checkbook ready, Woody.

What happens if they fail to reach the plateau? The team isn't fined and it doesn't get penalized a draft pick. The shortfall is allocated to players who were on the roster from 2013 to 2016. In other words, the NFLPA will spread it around as it sees fit.

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The cash floor has very little to do with available cap dollars. Every team can spend to the cap and most get with 5% every year. After the jets cut harvin they will have about 50 mill of cap room and about 45 mil of that can be allocated to FA, and yes the jets can spend more than the cap, by borrowing cap dollars from future years.  But I think they are going to be hard pressed to spend 45 mill alone on value contracts. There are 6 teams with 40 mill of cap space, and 15 teams with 25 mill or more. There is just not that many good FA

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what it means is 89% is the 4 year average and they are way below.

 

In the next two years, the Jets have to spend close to 100% to get back to the average

 

read between the lines the 2013/14 rosters were seriously cheap. 

 

It kind of makes me question why I even watched it all. They weren't trying to win. 

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The cash floor has very little to do with available cap dollars. Every team can spend to the cap and most get with 5% every year. After the jets cut harvin they will have about 50 mill of cap room and about 45 mil of that can be allocated to FA, and yes the jets can spend more than the cap, by borrowing cap dollars from future years.  But I think they are going to be hard pressed to spend 45 mill alone on value contracts. There are 6 teams with 40 mill of cap space, and 15 teams with 25 mill or more. There is just not that many good FA

 

Agreed that it may be hard to spend that much money given the available free agents, but it's still nice to have.  Could front load contracts for guys like Wilk and anyone else coming due for new contracts.  Besides, spending over the cap this year wouldn't really be borrowing from next year's cap right?  It'd be more of spending what wasn't spent the past two seasons.

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what it means is 89% is the 4 year average and they are way below.

 

In the next two years, the Jets have to spend close to 100% to get back to the average

 

read between the lines the 2013/14 rosters were seriously cheap. 

 

It kind of makes me question why I even watched it all. They weren't trying to win. 

 

Thankfully Idzik is gone now.  Up until he arrived I always took Woody as a guy who'd spend whatever to (attempt to) field good teams.  Hopefully he gets back to that now.  It's not cool shelling out PSL payments while the team is near the bottom in spending.

 

So they have to "spend close to 100% to get back to the average".  I wonder though if Woddy will open the checkbook to not only hit the 89% requirement, but actually approach near the 100% cap limit over the 4 year period of 2013-2016. 

 

If so, like patman said, it'll be hard to spend that money.  Someone should let Revis know we've got money to burn.  No CB is worth $20mil a year, but if the money is there, I'd rather spend for Revis vs having the room go to waste.  Us fans still pay the same prices regardless.

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Thankfully Idzik is gone now.  Up until he arrived I always took Woody as a guy who'd spend whatever to (attempt to) field good teams.  Hopefully he gets back to that now.  It's not cool shelling out PSL payments while the team is near the bottom in spending.

 

So they have to "spend close to 100% to get back to the average".  I wonder though if Woddy will open the checkbook to not only hit the 89% requirement, but actually approach near the 100% cap limit over the 4 year period of 2013-2016. 

 

If so, like patman said, it'll be hard to spend that money.  Someone should let Revis know we've got money to burn.  No CB is worth $20mil a year, but if the money is there, I'd rather spend for Revis vs having the room go to waste.  Us fans still pay the same prices regardless.

good point. If we have to spend nearly 100% of our cap money anyway lets try for the best CB on the market.

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Agreed that it may be hard to spend that much money given the available free agents, but it's still nice to have.  Could front load contracts for guys like Wilk and anyone else coming due for new contracts.  Besides, spending over the cap this year wouldn't really be borrowing from next year's cap right?  It'd be more of spending what wasn't spent the past two seasons.

Yeah, it could work out the best for the jets, instead of giving SB the jets can just give larger 1st year salaries in lieu of SB to what FA they sign this year, this increases their flexibility and lessens cap hits in future years, as the jets improve they will be FA on thier team that they want to keep, this will allow the cap dollars to be there for it. .

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So they have to "spend close to 100% to get back to the average".  I wonder though if Woddy will open the checkbook to not only hit the 89% requirement, but actually approach near the 100% cap limit over the 4 year period of 2013-2016. 

 

These are one in the same. the team has to be near the 100% cap limit in 15/16 to counteract how cheap they were in 13/14. That's how they can get to 89% over 4 years. If they spend 89% in 15/16 they will still be below the floor. 

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good point. If we have to spend nearly 100% of our cap money anyway lets try for the best CB on the market.

 

Batman and Robin back together.  put Milliner in the slot...with a second year Prior...

 

Bowles will be able to blitz away....We certainly have the money to pull that off...

 

Plus sign the best WR on the market, plus the best guard on the market and pay Mo...

 

And then we'll still have plenty of money to lock up the other holes with quality players.

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These are one in the same. the team has to be near the 100% cap limit in 15/16 to counteract how cheap they were in 13/14. That's how they can get to 89% over 4 years. If they spend 89% in 15/16 they will still be below the floor.

I'm probably not doing a good job of explaining it correctly. Sure, the Jets must spend just about 100% of the annual cap for both 2015 and 2016 just to hit the 89% floor for the four year period of 2013-2016. That's a given.

What I'm wondering is if the Jets are allowed to spend say 120% (rough estimate as I don't feel like doing the math) of the annual cap for 2015 and 2016 so that instead of just hitting the 89% mark for 2013-2016, they actually come closer to spending the full 100% of cap space allotted to teams for the full four year period? Kind of like they saved money in 2013 and 2014 to have larger cap limits for 2015 and 2016.

Rough example:

2015 cap is $141 million. Jets spend $170 million.

2016 cap is $150 million. Jets spend $180 million.

Yet even with spending way over the cap in 2015 and 2016, they still fall below the 100% total for 2013-2016 because they spent so little in 2013 and 2014.

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You can't violate the salary cap. The 89% is cash spending.

 

This. The Jets have to spend $141M per season the next 2 seasons. They do not have to have $141M per season hit their 2015-2016 salary caps.

 

That was the whole point of the rule change. There was a spending floor before, but it was like using up 90% or something of the cap for that season. Teams could (and many did) get around that fairly easily. The 89%, as you mentioned, is cash spending for a given season (or 4-year average) not cap space used up over that span.

 

We could hand out new/restructured deals with a lot of signing bonus money this year and next. That could satisfy the cash spending while still leaving us with more than 11% remaining on our cap limit in both seasons.

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I think some people confuse cash spending with available cap. Jets can spend 200 mil this year and still have a cap charge of 130mil. We actually may end up somewhere closer to that figure this year depending on who we sign. All the bonuses count towards the cash spend. Sign/resign 5-6 major players and your bonuses can reach 70-80 mil alone.

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I think some people confuse cash spending with available cap. Jets can spend 200 mil this year and still have a cap charge of 130mil. We actually may end up somewhere closer to that figure this year depending on who we sign. All the bonuses count towards the cash spend. Sign/resign 5-6 major players and your bonuses can reach 70-80 mil alone.

 

How do you do this typing only 2 lines?

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We could hand out new/restructured deals with a lot of signing bonus money this year and next. That could satisfy the cash spending while still leaving us with more than 11% remaining on our cap limit in both seasons.

 

It's gonna take more than giving the only 2 good players on the team new deals. 

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It's gonna take more than giving the only 2 good players on the team new deals.

1. I never claimed it would, if you read my post that you quoted. You're again doing that thing where you argue against claims or statements nobody has made.

2. You're wrong yet again. While they wouldn't, because they simply ARE going to bring in additional veteran FAs, technically they could give new (extended) deals with heavy signing bonuses to their top 2 players and then advance future salaries of others into signing bonuses today with no further strings attached (which every/any player would surely accept). On paper, over time, the only ones getting additional money out of Woody Johnson would be the 2 that got new extensions, and it could still allow the team to reach $141M of cash spending for this season. Further, the team's salary cap number could still be under 89% of the cap floor. It's not going to happen but it could be done.

There will be no fines, no lost draft picks, and no visits from the boogeyman or anything else you've imagined up, that will automatically kick in if/when the Jets cut Percy Harvin.

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