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CAP ADJUSTMENTS: Explanation Needed


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I know the CAP makes about as much sense as a guy sending a girl he just met a picture of his d***....but can anyone explain CAP adjustments.  

What makes up this number and why did the Patriots receive $9,000,000 while we got $400,000?  It is odd that the numbers are whole numbers.  It’s not roll over money.  Is it incentives not reached in 2018 but still counted against the 2018 CAP?  

 

Bottom line, the Patriots CAP is actually $201,000,000 while ours is $189,000,000

2019 Cap Totals - Patriots

2019 NFL Salary Cap $188,200,000
2018 Rollover Cap $3,173,423
Adjustment $9,000,000
Adjusted Salary Cap $200,373,423

 

2019 Cap Totals - Falcons

2019 NFL Salary Cap $188,200,000
2018 Rollover Cap $1,139,791
Adjustment $400,000
Adjusted Salary Cap $189,739,791
All Contracts $193,856,653
Top 51 Contracts $173,801,653
Dead Money $7,585,030
To
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I think it’s adjustments for bonuses from the previous season earned or not earned.  

The league requires you to count likely to be earned bonus against the cap in the current year.  If they aren’t earned you get a credit.  On the opposite end you don’t have to count not likely to be earned bonuses, but if the are earned they count against the next years cap instead.

That may not be the only adjustment.  There are probably more, but I think players incentives are the bulk of this adjustment.

 

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1 hour ago, Brewcrew said:

I think it’s adjustments for bonuses from the previous season earned or not earned.  

The league requires you to count likely to be earned bonus against the cap in the current year.  If they aren’t earned you get a credit.  On the opposite end you don’t have to count not likely to be earned bonuses, but if the are earned they count against the next years cap instead.

That may not be the only adjustment.  There are probably more, but I think players incentives are the bulk of this adjustment.

 

This is the right answer.  :)    

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3 hours ago, Falconsin2012 said:

I know the CAP makes about as much sense as a guy sending a girl he just met a picture of his d***....but can anyone explain CAP adjustments.  

What makes up this number and why did the Patriots receive $9,000,000 while we got $400,000?  It is odd that the numbers are whole numbers.  It’s not roll over money.  Is it incentives not reached in 2018 but still counted against the 2018 CAP?  

 

Bottom line, the Patriots CAP is actually $201,000,000 while ours is $189,000,000

2019 Cap Totals - Patriots

2019 NFL Salary Cap $188,200,000
2018 Rollover Cap $3,173,423
Adjustment $9,000,000
Adjusted Salary Cap $200,373,423

 

2019 Cap Totals - Falcons

2019 NFL Salary Cap $188,200,000
2018 Rollover Cap $1,139,791
Adjustment $400,000
Adjusted Salary Cap $189,739,791
All Contracts $193,856,653
Top 51 Contracts $173,801,653
Dead Money $7,585,030
To

Brett Favre, is that you??  :ninja::lol:

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What is a team’s “adjusted” Salary Cap?

While each team’s Salary Cap is initially set by the terms of the CBA (as calculated as explained above), there are several adjustments that can increase (or decrease) a team’s Salary Cap.   The first adjustment, as explained above, is the carryover of any excess Cap space from the prior year.  The second, the net incentive adjustment, is explained below and can affect the team’s Cap either positively or negatively.

Once those two adjustments are added to the league-wide Salary Cap number, the resulting number is known as the team’s “Adjusted” Salary Cap and it is this number that a team’s available Cap space is based on.

How do incentives affect the Salary Cap?

Incentives are written into some contracts to pay a player for reaching certain performance criteria.  Incentives come in two varieties – Likely To Be Earned (LTBE) and Not Likely To Be Earned (NLTBE) – each of which has different Salary Cap implications.

Likely To Be Earned Incentives (LTBE) are incentives based on performance levels that were reached in the prior season.  LTBEs count against the Salary Cap in the year they are scheduled.

For example, if a RB ran for 1,200 yards last year and he has an incentive that will pay him $100,000 if he runs for 1,000 yards this year, the incentive would be a LTBE Incentive and would count against the Salary Cap this year.

On the other hand, if the RB ran for 1,000 yards last year and he has an incentive that will pay him $100,000 if he runs for 1,200 yards this year, then incentive would be Not Likely To Be Earned (NLTBE) and would not count against this year’s Salary Cap.

If the player does not earn a LTBE Incentive, then the amount of the incentive ($100K in our example) will be credited against the following year’s Salary Cap and the team would have $100K in additional Cap space in the following year.

The opposite happens with NLTBE Incentives.  If those are earned, they are charged to the following year’s Salary Cap.  In our example, that would mean that the team would have $100K less in Cap space the following year.

https://russellstreetreport.com/salarycap/nfl-salary-cap-faqs/

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The Patriots' salary cap loophole might be in trouble 

NBC Sports Boston Staff
3 months ago

 

The Patriots are known for having a reputation for being frugal when it comes to paying players. But it looks like the jig might be up.

An ESPN article on Tuesday took a look at the implications of the NFL's Collective Bargaining Agreement expiring after the 2020 season.

One of the factors at play especially stands to impact the Patriots:

"In a normal year, if a player's contract calls for in-season incentive bonuses, these don't always have to be counted against the team's salary cap until after the season. Teams put "Not Likely To Be Earned" incentives (NLTBEs) in many contracts, and incentives that qualify as such aren't counted against the salary cap until after the season. The Patriots used $38.8 million in NLTBEs in 2018—far more than any other team (Washington was second at $24.6 million). This is perfectly legal and likely the result of the Patriots' ability to promise their players postseason shares and Super Bowl glory more reliably than other teams can. But in 2020, unless a new CBA is reached between now and then, it will be tougher to pull that off. In the Final League Year, any incentive bonuses, be they likely or unlikely to be earned, will count against a team's salary cap the moment they are triggered."

The Patriots have a habit of manipulating contracts to stay under the salary cap. 

In addition to the expiring CBA, players themselves have been frustrated with the Patriots' enterprising ways when it comes to finances.

Former Pats wide receiver Danny Amendola didn't hold back in an interview with ESPN's Mike Reiss last offseason when discussing the topic:

"I came in with an open mind. I understand Bill [Belichick] runs a tight ship, and he hasn't been known to pay his players, really. I understood that I gave money back to him so I could play for him and play for my teammates and fulfill my side of the contract, and at the end of the day, I had faith that he was going to give me an opportunity to stay..."

The challenge is magnified for the Patriots in particular. While all teams hope to put a roster on the field that can contend for a Super Bowl, the Patriots have been able to do it on a yearly basis, with veteran players, and rarely with a top pick in the draft to use.

As the expiration of the CBA inches closer, the NFL owners will certainly seek to maintain the upper hand when it comes to player contracts, which is set up to be a sticking point between the league and its players' association.

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7 hours ago, Brewcrew said:

The Patriots' salary cap loophole might be in trouble 

NBC Sports Boston Staff
3 months ago

 

The Patriots are known for having a reputation for being frugal when it comes to paying players. But it looks like the jig might be up.

An ESPN article on Tuesday took a look at the implications of the NFL's Collective Bargaining Agreement expiring after the 2020 season.

One of the factors at play especially stands to impact the Patriots:

"In a normal year, if a player's contract calls for in-season incentive bonuses, these don't always have to be counted against the team's salary cap until after the season. Teams put "Not Likely To Be Earned" incentives (NLTBEs) in many contracts, and incentives that qualify as such aren't counted against the salary cap until after the season. The Patriots used $38.8 million in NLTBEs in 2018—far more than any other team (Washington was second at $24.6 million). This is perfectly legal and likely the result of the Patriots' ability to promise their players postseason shares and Super Bowl glory more reliably than other teams can. But in 2020, unless a new CBA is reached between now and then, it will be tougher to pull that off. In the Final League Year, any incentive bonuses, be they likely or unlikely to be earned, will count against a team's salary cap the moment they are triggered."

The Patriots have a habit of manipulating contracts to stay under the salary cap. 

In addition to the expiring CBA, players themselves have been frustrated with the Patriots' enterprising ways when it comes to finances.

Former Pats wide receiver Danny Amendola didn't hold back in an interview with ESPN's Mike Reiss last offseason when discussing the topic:

"I came in with an open mind. I understand Bill [Belichick] runs a tight ship, and he hasn't been known to pay his players, really. I understood that I gave money back to him so I could play for him and play for my teammates and fulfill my side of the contract, and at the end of the day, I had faith that he was going to give me an opportunity to stay..."

The challenge is magnified for the Patriots in particular. While all teams hope to put a roster on the field that can contend for a Super Bowl, the Patriots have been able to do it on a yearly basis, with veteran players, and rarely with a top pick in the draft to use.

As the expiration of the CBA inches closer, the NFL owners will certainly seek to maintain the upper hand when it comes to player contracts, which is set up to be a sticking point between the league and its players' association.

This is a great article.  I’ve read it before.  There are two areas where the Patriots lap the field from an offseason perspective:  

1. NLTBE Incentives

2.  Their use of Restricted FA via trade

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On 6/22/2019 at 6:45 PM, FalconFanSince1970 said:

Some sort of adjustment. We're sittin around $7M at the bottom of the league and getting ready to sign an ornament for $100M so it don't matter.

Reading through this thread again and realized you probably thout this was a snarky response. That was supposed to be "some sort of incentive adjustment". Could also be injury settlement related. Sorry bout that.

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