What does cash to cap mean?

[BertSquirtgum]

Buddy Nix mentioned spending all the cash to cap. What the hell does that mean? Does that mean he can spend all he wants up to the cap or just a certain amount?

[BLeonard]

Re: What does cash to cap mean?

I'm not a cap expert or anything, but how I understand it is this:

Let's say the NFL cap is $100 million.

Now, the Bills sign a player for a 3 year deal, that has a $15 million signing bonus. The NFL cap would spread that out over the duration of the deal... So:

2012: $5 mil
2013: $5 mil
2014: $5 mil

So, the bonus would only count $5 mil on each year's cap.

The Bills, using "cash to the cap," do not spread the bonuses out, so all $15 mil counts on the first year of the deal. Which means, in their eyes, they only have $85 mil left to spend ($100 mil cap - $15 mil). The NFL would say they have $95 mil left to spend ($100 mil cap - $5 mil counted this season).

So, right there, the Bills would essentially be handicapping themselves $10 million.

Hopefully that makes sense. I'm sure a capologist can explain it better, but that's pretty much the gist of it.

-Bill

[BertSquirtgum]

Re: What does cash to cap mean?

So basically the Bills have their own cap. Not the cap of the NFL which is 120$ million I believe. If true, what I get from that is the Bills are limiting themselves on being able to get players in free agency and signing their own. Pretty stupid if you ask me.

[Ickybaluky]

Re: What does cash to cap mean?

So, right there, the Bills would essentially be handicapping themselves $10 million

Comes out in the wash, though.

In your example, yes they count the extra $10 in the current year, but they have $10M less they account for in future years.

Basically, they are willing to spend actual cash to the cap, not the accounting figure. In the long run, it is the same.

People make a lot of this, but really most teams have budgets. Most businesses do as well. In the end the how is as important as the how much.

[Philagape]

Re: What does cash to cap mean?

Don't amortized bonuses still count against future NFL caps no matter what the team does? If so, it doesn't buy any space in the NFL's eyes.

[BLeonard]

Re: What does cash to cap mean?

Comes out in the wash, though.

In your example, yes they count the extra $10 in the current year, but they have $10M less they account for in future years.

Basically, they are willing to spend actual cash to the cap, not the accounting figure. In the long run, it is the same.

People make a lot of this, but really most teams have budgets. Most businesses do as well. In the end the how is as important as the how much.

In a sense, yes, but at the same time, if the don't end up spending the money they don't account for in future years, it results in the team being less able to be competitive, specifically in the Free Agent market.

The only advantage I see to "cash to the cap" is the fact that, they could, for example, cut Fitz right now and it would have no effect, bonus wise, on their 2012 cap, since all of Fitz's bonus would have been counted on the 2011 cap. It provides a bit more flexibility in that aspect.

-Bill

[ghz in pittsburgh]

Re: What does cash to cap mean?

In terms of NFL cap, it's a wash.

In terms of cash flow, it's a big deal. The owner needs a deep pocket to make it happen, though I have to believe they can go to any bank to borrow and pay the interest.

[BLeonard]

Re: What does cash to cap mean?

Don't amortized bonuses still count against future NFL caps no matter what the team does? If so, it doesn't buy any space in the NFL's eyes.

Correct. But, with "cash to the cap," since they essentially take it all on at once, it "frees up" that space, in the event that the team cuts the player.

At least that's how I understand it.

Also, I've posted this a few times, but it is relevant here: http://www.nationalfootballpost.com/...s-on-2011.html

The new CBA has, for the first time, provided teams a valuable benefit: the ability to carry over remaining Cap room into the following year.

Teams no longer need to go through that charade. Thus, teams will have adjusted Caps of much more than the projected 2012 Cap number of around $125 million. A team like the Buccaneers, for example, with $25 million remaining in Cap room, may have an adjusted 2012 Cap of close to $150 million.

The question for the NFLPA is: will teams actually spend all of this Cap room? Keep in mind, there are no team spending minimums until 2013, and teams can “free ride” this year and next.

So, for the 2012 season ONLY, teams that didn't spend up to the cap can roll over that money and tack it on to the 2012 cap, which would actually raise the Bills' cap for 2012.

So, if the 2012 cap is $125 million and the Bills ended 2011 at $15 million under, they could, in essence, spend $140 million on the 2012 cap...

But, with no salary floor, does anyone honestly think they'll take advantage of that? I don't.

-Bill

[BertSquirtgum]

Re: What does cash to cap mean?

I don't know about anyone else but I had lost faith in Buddy. After watching the press conference my feelings about him have changed. Seems like he actually does know what he is doing and does actually have a plan.

[delectrolux]

Re: What does cash to cap mean?

Somewhat related, but the Cap floor starting in 2013 is cash spent, so a signing bonus will count fully towards the 89% of the cap in the year it is given (just like the "Cash to Cap" philosophy).

Basically it means that if the Bills give out two signing bonuses of $20M each year (which seems like a realistic number), then that's $40M toward the 89%. So if the Cap is $140M, 89% of that is about $125M. Subtract the $40M in bonuses, the Bills only really have to spend about $85M in salaries to hit the floor. Not exactly a spending frenzy...

[BLeonard]

Re: What does cash to cap mean?

I don't know about anyone else but I had lost faith in Buddy. After watching the press conference my feelings about him have changed. Seems like he actually does know what he is doing and does actually have a plan.

My problem with Buddy isn't necessarily his "plan," per se. I think his "plan" makes sense and was pretty well thought out.

My problem with Buddy is his "plan B." It's great to say you need this and that and that you're gonna do this and that. What happens if your initial plan doesn't work? What's your backup?

Best example I can give is Tyson Clabo fro last year... Obviously, we needed O-Line help and apparently, we went after Clabo. But, what happened when we didn't get him? Nothing. That's what I have a problem with... No "plan B."

Another good example is Merriman. I have no issue with them kicking the tires and seeing if he had anything. But, they depended on him to not only be a force, but play a full 16 game season. Their "plan B" apparently, was Spencer Johnson at OLB, because that's what they did when Merriman went down.

I'm cool with his "Plan A." But, what's his "plan B," if Plan A doesn't go as planned?

-Bill

[X-Era]

Re: What does cash to cap mean?

[Buddo]

Re: What does cash to cap mean?

My problem with Buddy isn't necessarily his "plan," per se. I think his "plan" makes sense and was pretty well thought out.

My problem with Buddy is his "plan B." It's great to say you need this and that and that you're gonna do this and that. What happens if your initial plan doesn't work? What's your backup?

Best example I can give is Tyson Clabo fro last year... Obviously, we needed O-Line help and apparently, we went after Clabo. But, what happened when we didn't get him? Nothing. That's what I have a problem with... No "plan B."

Another good example is Merriman. I have no issue with them kicking the tires and seeing if he had anything. But, they depended on him to not only be a force, but play a full 16 game season. Their "plan B" apparently, was Spencer Johnson at OLB, because that's what they did when Merriman went down.

I'm cool with his "Plan A." But, what's his "plan B," if Plan A doesn't go as planned?

-Bill

I know what you mean, but I'd make a couple of observations.

Some of the Plan B does occur, but is more predicated on draft picks and player improvements, and we didn't get all of that this year.

For example, for all that people wanted Moats moved back outside, even when he was, his impact was negligible. Batten also did next to nothing, apart from get a boneheaded roughing penalty, that I believe put him in the doghouse. Both of those guys were probably part of 'plan B'.

Haiston became 'Plan B' for not signing Clabo, and worked out pretty well in the end, although as much by accident than design.

I think it also needs to be said that you can't get everything right, or all that you want, every off-season, but the more you do get, obviously, the better off you will be in the long run.

[madness]

Re: What does cash to cap mean?

About half the teams in the league now use cash to cap.

[Michael82]

Re: What does cash to cap mean?

About half the teams in the league now use cash to cap.

I don't know where I read it, but I heard that 22 teams in the NFL currently use cash to the cap.