Basic Cap Information

San Francisco Free Agents By Year

Salary Cap Numbers By Year

Current Cap Totals

Disclaimer

We do not claim this information is 100% correct. This information is gained through a variety of media and web sources that have been shown to have credibility. There is a little inconsistancy from source to source and this will show up at times. Due to contract structures all being unique to a certain extent, a one size fits all approach to portraying the numbers does not always work and we will note by the numbers when we feel there is the need.

The purpose of this part of the site is to provide fans with as much reliable information as is possible as well as our interpetation of this information. As stated before, the information is not completely correct, but it can provide an avid fan with the tools needed to gain a better understanding of the contracts and cap situation of a team we all enjoy following.

The cap section is a work in progress, much like the site. Feel free to e-mail us if you have any questions, information or are interested in contributing to what we do here.

-Jason Hurley
webmaster@ninercaphell.com

Sources

• USA Today Salary Database
• NFLPA Active Player Search
• NFL CBA
• NFL CBA Extension

F.A.Q.

Q: What is the top 51 rule?
A: During the offseason, only the players with the 51 highest cap numbers count against the cap. In addition, the prorations, roster bonuses, or workout bonuses of players not among the top 51 count against the cap. So if a team signs a free agent and his cap number for the first year is 3 million, he will knock another player out of the top 51. If that player had a cap number of 300K, than the free agent is really only lowering the team's cap room by 2.7 million, not 3 million.

Q: How does proration work?
A: When a player receives a signing bonus, it is divided evenly throughout the contract for salary cap purposes. This is called "prorating" a signing bonus. However, if the end of the current CBA is approaching, this would change some. No signing bonus can be prorated farther than 3 years past the last capped year. Since 2006 is currently scheduled to be the last capped year, the maximum proration for any signing bonus in 2006 is 4 years.

Q: What is dead money?
A: Dead money is the name given to salary cap space that is being used up by players no longer on a team's roster. When a player is released or traded before every year of his proration has been used up, the remaining prorations accelerated into the year in which he was released/traded. So if a player received a 5 million dollar signing bonus that was prorated over 5 years (1 mil per year), and he was cut after 2 years, the remaining 3 million would count against the team's cap in year 3.

Q: How does June 1st effect the rules for acceleration?
A: When a player is released after June 1st, only the current year's proration counts in the current year. The remaining prorations would count the following year. If we use the example in the previous question, the team would only be left with 1 million in dead money for year 3, but they would have 2 million in dead money for year 4. This is a way for a team to put off their cap problems for one more season before getting into trouble. Please note that this rule does not apply when a player is traded or waived. Also, because 2006 is the last scheduled capped year, the June 1st rule does not apply in 2006.

Q: What do LTBE and NLTBE stand for?
A: LTBE stands for Likely To Be Earned. NLTBE stands for Not Likely To Be Earned. These phrases are in reference to incentives, and how these incentives count towards the cap. An incentive is considered LTBE if the specified performance was achieved the previous year. This goes for an individual or a team incentive. Therefore, if the performance was not achieved the previous year, the incentive is considered NLTBE. All LTBE incentives are counted against the cap, while all NLTBE incentives are not counted against the cap.

Q: How does acceleration occur when a player voids the end of his contract?
A: The acceleration for the voided years occurs in the year in which the player voided the contract.

Q: How do LTBE credits work?
A: LTBE credits can be used to transfer cap room from one year to the next. The CBA states that if the LTBE credits that weren't actually achieved are greater than the NLTBE credits that actually were achieved, the the difference will be added to the next year's salary cap. Even though all LTBE incentives are counted against the cap, not all of them are actually achieved. Since using up cap room for money that ended up not even being paid is unfair, teams can get a credit for the next year. However, if the NLTBE incentives that are earned are greater than the LTBE incentives that are not earned, the team will have its salary cap decreased the following year. So while there is a starting salary cap each year, almost every team ends up having a different salary cap after the incentives are calculated.

Q: So do teams just get lucky? Or is there a way to control this?
A: The key to the whole thing is on page 124 of the CBA, which states that "Any new or altered incentive bonuses renegotiated in a pre-existing contract after the start of the regular season in which they may be earned automatically will be deamed "likely to be earned" during that season". This means that a team could write any incentive into a contract, and it will still be considered LTBE and counted against the cap. So if a team has 3 million in cap room at the end of the season and knows they won't use it, they can write bogus incentives into player's contracts to create LTBE incentives that won't be achieved. This makes the LTBE incentives not achieved greather than the NLTBE incentives achieved, so the team's salary cap is raised the following year.

Salary Cap 101

HOW TO COMPUTE A SALARY CAP NUMBER

The football fan is constantly bombarded with the phrases such as 'salary cap' and 'cap number.' Unlike most people, you, the reader of these columns, know that these phrases have nothing to do with hats. Incident to my ongoing objective to help you better understand the business side of the NFL, the following is a summary of the nuances of how a player's Salary cap number is computed.

SIGNING BONUSES

Signing bonuses and any amounts treated as signing bonuses are prorated equally over the length of the player's contract for purposes of calculating the player's salary cap number. For example, if a $5 million signing bonus is paid on a five-year contract, the signing bonus will count $1 million annually against the team salary for each of the five years even though the player receives the full $5 million in the first year. The amount of the signing bonus is simply divided by the number of contract years. Note, however, if a player is released or retires before the end of the contract period, the general rule is that the remaining portion of the salary cap is accelerated so that the entire remaining portion of the bonus amount is recognized against the team's salary in the year the player's employment terminates.

RENEGOTIATION / SIGNING BONUSES

If a signing bonus is given in conjunction with a renegotiation and/or extension of a previously existing contract, the new signing bonus is prorated over the length of the new contract years, including the year that the renegotiation takes place. For example, if a player was signed to a two-year contract for 1998 and 1999 and then receives a new signing bonus in 1999 in exchange for adding two additional years (2000-2001) to the contract, then the new signing bonus is prorated (one-third in each year) equally over 1999, 2000 and 2001, not just in 2000 and 2001.

PARAGRAPH SALARY

A player's paragraph 5 salary ('base salary') is always counted against team salary in full in the year that it is earned. If a player is scheduled to make a base salary of $500,000 in 2000, then all of the $500,000 counts against his team's salary cap that year.

LIKELY TO BE EARNED (LTBE)

Other amounts players earn count against the salary cap only if they are likely to be earned ('LTBE'). These other amounts include, but are not limited to, performance and honors incentives, roster bonuses, reporting bonuses and off-season workout bonuses.

As noted in my previous column of July 14, 1999, to determine whether a performance or honor incentive is LTBE for veteran players, you need to examine the player's and/or team's prior year on-field performance. If a running back will earn a $100,000 incentive if he has 1,000 rushing yards in 2000, his 1999 performance must be analyzed to determine if the incentive is LTBE for 2000 and counts against his team's 2000 salary cap. If the player rushed for 1,000 or more yards in 1999 then the incentive is LTBE in 2000 (counts against the 2000 salary cap). If the player rushed for less than 1,000 yards in 1999 then the incentive is not likely to be earned (NLTBE) and does not count against the salary cap in 2000. The same rule applies for any team incentives that are negotiated. Note there are some exceptions to these basic rules.

Per the CBA, there are different sets of incentives for rookies in the NFL (see my previous article dated July 21, 1999). For example, an incentive for a third round wide receiver that entitles the player to $10,000 if he has 6 Receiving Touchdowns would count $6,666 against the team's Entering Player Pool and overall team salary cap via the rookie incentive chart contained in the CBA.

ROSTER BONUSES

Roster bonuses are treated in a manner very similar to performance bonuses. For veterans, the player's prior year is examined to determine to what extent a roster bonus is LTBE for the current league year. For example, if a player was a member of the 53 man roster for 14 games in 1999 and has a roster bonus for $50,000 if he is a member of the 53 man roster for the same or fewer amount of games in 2000, then the full $50,000 is LTBE in 2000 and counts against the salary cap. If the bonus is written for being on the roster for a greater number of games then the bonus is NLTBE in 2000. However, unlike performance incentives, NLTBE roster bonuses will count against a team's salary cap immediately once it is actually earned by the player.

For rookies, the chart noted in the CBA is utilized; generally a regular season roster bonus that a drafted player receives if he makes the team will count 100% against the team salary cap in the contract year in which it is earned while undrafted players' roster bonuses count only 30% (of the total bonus amount) against the salary cap.

Regardless if the player is a veteran or rookie, any roster bonus that is guaranteed is treated as a signing bonus and thus prorated equally over the length of the contract for salary cap purposes.

REPORTING BONUSES

All non-guaranteed reporting bonuses are LTBE and count in full against team salary in the year they are earned. This is true for both veterans and rookies. If a reporting bonus is guaranteed, then it is treated as a signing bonus and prorated equally over the length of the contract for salary cap purposes.

WORKOUT BONUSES

Workout bonuses are automatically LTBE and count in full against team salary in the year they are earned. If the workout bonus is guaranteed, then it is treated as a signing bonus and prorated equally over the length of the contract for salary cap purposes.

EXAMPLES

Compute the salary cap number for the following three players.

Example 1:

Rookie Player A

2000 Base: $400,000
Signing Bonus: $2,000,000 (5 year deal)
2000 Reporting Bonus: $500,000
2000 Workout Bonus: $50,000
Answer: Cap Number = $1,350,000
($400k base + $400k sign bonus proration (2 million - 5 yrs) + $500k rpt bonus + $50k w/o bonus = $1.35m)

Example 2:

Veteran Player B

2000 Base: $600,000
Signing bonus: $1,800,000 (3-year deal signed in 1999)
2000 Roster bonus: $200,000 (Note: was on team's roster for all of 1999)
2000 LTBE's: $150,000
Answer: Cap Number = $1,550,000
($600k base + $600k signing bonus proration (1.8 million - 3 yrs) + $200k roster bonus + $150k LTBE's = $1.55M)
Note: If the roster or reporting bonuses were guaranteed they would be treated as signing bonus and the results would be different (i.e., they would be prorated over the term of the contracts)

Example 3

Assume player B renegotiates his contract prior to the start of the 2000 season and
(a) receives a new $1,000,000 sign bonus,
(B) extends the original contract for two additional years, and
(C) lowers his 2000 base salary to $200,000.
What is his new 2000 cap number?
Answer: $1,400,000
($200k new base + $600k old sign bonus proration + $250k new sign bonus proration ($1,000,000 - 4 yrs. (2000-2004)) + $200k rost + $150k LTBE's = $1.4m)
Note: In a renegotiation the old signing bonus proration does not change.

As the reader now realizes, the astute Contract Advisor, in order to better represent his clients, has to be able to not only understand the salary cap rules but also be able to perform the actual calculations to determine the salary cap ramifications of any contract terms he proposes.