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Salary cap question


CeeJayy

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Hey guys,

I'm pretty new here and just a question for some of you that have a better understanding of the salary cap. I'll use Sammy Watkins contract as an example 3 years for $48,000,000

Do the Chiefs take a cap hit of 16 million a year? How do these numbers get spread out across the 3 years? How does guaranteed money factor in? In his case they gave him $30,000,000.

Another question, what if they decide to cut him after year 2? are they still responsible for the 3rd years cap hit?

 

Thanks for the info!

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5 minutes ago, CeeJayy said:

Hey guys,

I'm pretty new here and just a question for some of you that have a better understanding of the salary cap. I'll use Sammy Watkins contract as an example 3 years for $48,000,000

Do the Chiefs take a cap hit of 16 million a year? How do these numbers get spread out across the 3 years? How does guaranteed money factor in? In his case they gave him $30,000,000.

Another question, what if they decide to cut him after year 2? are they still responsible for the 3rd years cap hit?

 

Thanks for the info!

I believe it depends on the spread of the cash. So it averages at £16m a year but they might have £20m this year, £15m next (with ten guaranteed), and £13m the final year (not guaranteed). 

That's just example numbers at a guess. 

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8 minutes ago, CeeJayy said:

Hey guys,

I'm pretty new here and just a question for some of you that have a better understanding of the salary cap. I'll use Sammy Watkins contract as an example 3 years for $48,000,000

Do the Chiefs take a cap hit of 16 million a year? How do these numbers get spread out across the 3 years? How does guaranteed money factor in? In his case they gave him $30,000,000.

Another question, what if they decide to cut him after year 2? are they still responsible for the 3rd years cap hit?

 

Thanks for the info!

overthecap.com is a great resource to learn all about the cap. The only cap we are able to talk about right now is the one we want to bust in Macc's ass before turning the gun on ourselves.

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3 minutes ago, morny said:

I believe it depends on the spread of the cash. So it averages at £16m a year but they might have £20m this year, £15m next (with ten guaranteed), and £13m the final year (not guaranteed). 

That's just example numbers at a guess. 

Is that just for London games or is he getting U.S.$ for games here??

 

As for the initial question contracts can be set up a million different ways but short answer is each years salary figure is charged to that years cap. Signing bonuses are paid up front but prorated over life of contract for the cap ( 10M signing on 5 yr deal , 2M per year) As per cutting player. Anything guaranteed is charged to following years cap

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4 minutes ago, 20andOut said:

Is that just for London games or is he getting U.S.$ for games here??

 

As for the initial question contracts can be set up a million different ways but short answer is each years salary figure is charged to that years cap. Signing bonuses are paid up front but prorated over life of contract for the cap ( 10M signing on 5 yr deal , 2M per year) As per cutting player. Anything guaranteed is charged to following years cap

Ah touche. Habit of being a UK Jets fan, everything is in £. 

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12 minutes ago, jgb said:

overthecap.com is a great resource to learn all about the cap. The only cap we are able to talk about right now is the one we want to bust in Macc's ass before turning the gun on ourselves.

Thanks, will check it out!

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8 minutes ago, 20andOut said:

Is that just for London games or is he getting U.S.$ for games here??

 

As for the initial question contracts can be set up a million different ways but short answer is each years salary figure is charged to that years cap. Signing bonuses are paid up front but prorated over life of contract for the cap ( 10M signing on 5 yr deal , 2M per year) As per cutting player. Anything guaranteed is charged to following years cap

Thanks for the info!

Makes sense, so if the Chiefs spread the $30,000,000 across the 3 years and wanted to cut Watkins they'd only be responsible for $10,000,000 in year 3?

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Probably less. Reports on contract are 30M gauranteed. Part of that is probably first year salary. Assuming third year salary not guaranteed, only 1/3 of signing bonus (not yet reported) would be charged to cap if cut going into year three

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1 minute ago, 20andOut said:

Probably less. Reports on contract are 30M gauranteed. Part of that is probably first year salary. Assuming third year salary not guaranteed, only 1/3 of signing bonus (not yet reported) would be charged to cap if cut going into year three

Appreciate it!

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28 minutes ago, CeeJayy said:

Thanks for the info!

Makes sense, so if the Chiefs spread the $30,000,000 across the 3 years and wanted to cut Watkins they'd only be responsible for $10,000,000 in year 3?

No, if the Chiefs gave him a $30 mil signing bonus that would be the case. 

Let's say the Bills gave him a $10 mil signing bonus with $20 mil in base salaries guaranteed. Then the figure would be $3.3 mil if cut before year 3. As of now we don't know the contract details of the guarantee to comment.

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4 minutes ago, LAD_Brooklyn said:

No, if the Chiefs gave him a $30 mil signing bonus that would be the case. 

Let's say the Bills gave him a $10 mil signing bonus with $20 mil in base salaries guaranteed. Then the figure would be $3.3 mil if cut before year 3. As of now we don't know the contract details of the guarantee to comment.

Got it! - thanks for the information, appreciate it!

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