Cap Update 1/16/07

[clumping platelets]

Found out that the Bills restructured one contract in order to use the "LTBE loophole"

Performance bonuses added to contracts after the start of the season are automatically considered "Likely-to-be-earned" (LTBE) and immediately count on the cap. We know that Rian Lindell rec'd an extension but the bonus wasn't added to his contract..........

Bills added a $3 million LTBE to RB Shaud Williams deal in December.....it was likely some ridiculous bonus of scoring 4 TDs in a game or catching 10 passes in a game...yes, these types of bonuses tend to be like this.....

I still have the Bills about $3.5 million under for 2006 and that will likely be applied to NLTBE incentives and leave the Bills with no cap adjustment or maybe a cap credit in 2007

:type:

If you would like to read more about it......go HERE (http://www.kffl.com/forums/showthread.php?t=195571)

[Coach Sal]

So, basically, at a certain point in the season, a team says, "hey, we're $5 million under the cap for this year."

So, they approach a player and ask him to "renegotiate" his contract and add an incentive (something ridiculous that they and he both know he will not reach). They try to make that incentive as close to the $5M they are under the cap as possible. They cannot go over $5M, because the $$ gets counted immediately into that season's cap and that's the only room they have.

After doing this, the team is now right about at the cap #.

But, since the incentive counted against the cap, but was actually never reached, that $5M gets "credited" to the next year's cap figure, meaning whatever the team is under the cap that following season, they can just add that amount ($5M in this case) to their "available" cap figure.

Is all of this correct?

And one question.....if there is a "cap credit" the following season for this team, can that credit exceed the league-wide cap amount? If the NFL cap is $100M, will it then actually be $105M for that team?

Great stuff. Thanks.

[clumping platelets]

I will answer this later..gotta run :ontome: