11:25am
The Lions have made a couple of moves in the 2nd half of May, but their roster remains maxed out at 80 players. Recently signed players have about one more month to impress the coaching staff as nine players will be released to free up roster spots to sign the recently drafted rookies. Recently drafted rookies receive a roster exemption until they sign a contract.
The Lions signed Greg Lee (WR) and UDFA Shemiah Legrande (DT) to one year contracts for the league minimum ($295,000). They also released Clark Harris and Isreal Route. They had both originally signed contracts on the 1st of January. The above transactions have a minimal effect on the Lions salary cap (less than $10,000).
Kalimba Edwards - When Edwards was released by the Lions in March, he was designated as a June 1st release. On Monday, June 2nd, the Lions will reap the rewards of that designation when they get an additional $4M of cap space for the current year with $2M of dead cap in 2009. The freed up cap space will be used to sign the bulk of the rookie draft picks.
$4M will not be enough to sign all of the rookie draft picks. Look for the Lions to make at least one significant move to free up cap space before training camp, either in the form of a significant cut, an extension for a player like Jason Hanson, Roy Williams or Dominic Raiola or a contract restructure of Cory Redding. One way or another the Lions will need to free up some cap space before they sign all of their rookie draft picks.
As of Monday, June 2nd, the Lions are about $3.9M under the salary cap.
Showing posts with label Kalimba Edwards. Show all posts
Showing posts with label Kalimba Edwards. Show all posts
Friday, May 30, 2008
Wednesday, April 9, 2008
Dead Cap
7:55 EDT
Tom Kowalski of Mlive.com wrote an article about the Lions 2008 "Dead Cap". The article is well written and accurate.
What is Dead Cap? - Dead Cap is having salary cap space used by players who are no longer under contract.
How does that happen? - Most NFL player contracts are not guaranteed and therefore a team can cut a player at any time and not pay the remaining terms of the contract.
If you don't have to pay the remaining contract, how does a team acquire dead cap? - It is attributable to signing bonuses and other items treated as signing bonus, that, for salary cap purposes are prorated over the life of a players contract. For more information on these bonuses, refer to my blog entry, that explains these items. If a player is cut in the 4th year of a five year contract, there is "dead cap" for the unamortized portion of the signing bonus.
Why do the Lions have so much Dead Cap? - When Rod Marinelli took over the Lions in January of 2006, there were about 70 players under contract, the 53 active members of the roster, some players that were on IR and some players signed in early January. Of those 70 or so players, only 14 remain under contract and it's expensive to revamp an entire roster like the Lions have done over the past two years.
Kowalski's list of the Lions 2008 Dead Cap totals $15,192,000 (Plus another $2M of Dead Cap in 2009 for Kalimba Edwards) and based on history, we'll have another $1,100,000 from the normal course of business (injury settlements, workout bonuses, etc):
Tom Kowalski of Mlive.com wrote an article about the Lions 2008 "Dead Cap". The article is well written and accurate.
What is Dead Cap? - Dead Cap is having salary cap space used by players who are no longer under contract.
How does that happen? - Most NFL player contracts are not guaranteed and therefore a team can cut a player at any time and not pay the remaining terms of the contract.
If you don't have to pay the remaining contract, how does a team acquire dead cap? - It is attributable to signing bonuses and other items treated as signing bonus, that, for salary cap purposes are prorated over the life of a players contract. For more information on these bonuses, refer to my blog entry, that explains these items. If a player is cut in the 4th year of a five year contract, there is "dead cap" for the unamortized portion of the signing bonus.
Why do the Lions have so much Dead Cap? - When Rod Marinelli took over the Lions in January of 2006, there were about 70 players under contract, the 53 active members of the roster, some players that were on IR and some players signed in early January. Of those 70 or so players, only 14 remain under contract and it's expensive to revamp an entire roster like the Lions have done over the past two years.
Kowalski's list of the Lions 2008 Dead Cap totals $15,192,000 (Plus another $2M of Dead Cap in 2009 for Kalimba Edwards) and based on history, we'll have another $1,100,000 from the normal course of business (injury settlements, workout bonuses, etc):
- 4,271,000 Shaun Rogers
- 3,000,000 Damien Woody
- 2,333,000 Fernando Bryant
- 1,360,000 Kenoy Kennedy
- 1,000,000 Kalimba Edwards (Plus another $2M to be recognized in 2009)
- 1,000,000 Eddie Drummond
- 741,000 Kevin Jones
- 500,000 Shawn Bryson
- 333,000 Rex Tucker
- 240,000 AJ Davis
- 180,000 Barry Stokes
- 150,000 Blaine Saipaia
- 84,000 Johnny Baldwin
Here's a list of the Lions 2007 Dead Cap that totaled $20,056,000:
- 5,448,000 Mike Williams
- 3,275,000 Charles Rogers
- 1,760,000 Ross Verba
- 1,600,000 James Hall
- 1,500,000 Corey Bradford
- 1,300,000 Dre Bly
- 1,000,000 Josh McCown
- 767,000 Marcus Pollard
- 530,000 Eddie Drummond
- 500,000 Shawn Bryson
- 383,000 Rex Tucker
- 333,000 Marcus Bell
- 275,000 Donte Curry
- 185,000 Barry Stokes
- 120,000 AJ Davis
- 1,080,000 Miscellaneous others (Injury settlements and workout bonuses)
In 2006, the Lions had almost $13,889,000 in Dead Cap:
- 7,088,000 Joey Harrington
- 3,340,000 Charles Rogers
- 1,350,000 Cory Bradford
- 469,000 LeVar Woods
- 375,000 Dan Wilkinson
- 167,000 David Loverne
- 1,100,000 Miscellaneous others (Injury Settlements and workout bonuses)
Since Rod Marinelli has been here, he's cleaned up the roster, but that cleaning has had consequences, to the tune of over $52M of Dead Cap, almost 16% of the salary cap space for that time period. The salary cap for the time frame has been a total of $327,727,000 (102M in 2006, 109M in 2007 and 116,727,000 in 2008).
Failed first round draft picks have accounted for $19,151,000, pre-Rod Marinelli:
- 7,088,000 Joey Harrington
- 6,615,000 Charles Rogers
- 5,448,000 Mike Williams
We've gotten some value for some of the players:
- $4,271,000 Shaun Rogers (for L. Bodden and a 3rd rounder in 2008)
- $1,600,000 James Hall (5th round draft pick in 2007)
- $1,300,000 Dre Bly (acquired G. Foster, T. Bell and a 5th rounder)
- $1,000,000 Josh McCown (for a 4th rounder in 2007 from Oak, along with M. Williams)
As I posted in an earlier blog entry, 2009 Cap Outlook, we are in good shape for 2009 with realistic cap commitments of $78M with a projected salary cap in the neighborhood of $120M (42M under). Dead Cap should be less of an issue going forward, this is Marinelli's roster now and there shouldn't be much of turnover in 2009.
Saturday, April 5, 2008
Pat Kirwan and Updated Brian Kelly Cost
7:50am EDT
Pat Kirwan is one of my favorite national media writers. He is one of the few that I religiously read almost everything that he writes. He uses his prior experience in the NY Jets front office to provide great offseason analysis and draws on his prior coaching experience and scouting background to provide in depth analysis of draft prospects and the regular season.
Yesterday, he wrote an article, Spring cleaning NFL-style means trimming cap space, in it he addresses teams that are tight against the salary cap and confirms that the Lions are extremely tight against the cap, $668,000 under. I currently had the Lions at $990,000 under the cap, but have updated Brian Kelly's cap cost (see below) to agree with Kirwan's report. A couple of items that he addresses with the Lions, need to be expounded upon.
Kalimba Edwards - As I noted in an earlier blog entry, Edwards was designated as a June 1 release and consequently, we will receive an additional $4,000,000 of cap space on June 1, when he is officially off the books. So, yes we are tight against the cap right now, but there is relief on the horizon and Edwards cap space will be used for the bulk of the rookie draft pick costs.
Dominic Raiola - With a base salary of $3.4M and a current year cap cost of $4.4M, Raiola is a candidate to be renegotiated. However, Raiola is signed through the 2009 season and it's generally been the practice of the Lions to negotiate extension of player contracts in the final year of their contract. Raiola could be renegotiated and extended, but I think it's unlikely. I believe the Lions will address Raiola's contract near the end of this year or next year.
Calvin Johnson - Kirwan also mentions that Johnson may be a candidate for a restructure, but according to the CBA agreement, Article XVII Entering Player Pool, Section 4(i) states:
Pat Kirwan is one of my favorite national media writers. He is one of the few that I religiously read almost everything that he writes. He uses his prior experience in the NY Jets front office to provide great offseason analysis and draws on his prior coaching experience and scouting background to provide in depth analysis of draft prospects and the regular season.
Yesterday, he wrote an article, Spring cleaning NFL-style means trimming cap space, in it he addresses teams that are tight against the salary cap and confirms that the Lions are extremely tight against the cap, $668,000 under. I currently had the Lions at $990,000 under the cap, but have updated Brian Kelly's cap cost (see below) to agree with Kirwan's report. A couple of items that he addresses with the Lions, need to be expounded upon.
Kalimba Edwards - As I noted in an earlier blog entry, Edwards was designated as a June 1 release and consequently, we will receive an additional $4,000,000 of cap space on June 1, when he is officially off the books. So, yes we are tight against the cap right now, but there is relief on the horizon and Edwards cap space will be used for the bulk of the rookie draft pick costs.
Dominic Raiola - With a base salary of $3.4M and a current year cap cost of $4.4M, Raiola is a candidate to be renegotiated. However, Raiola is signed through the 2009 season and it's generally been the practice of the Lions to negotiate extension of player contracts in the final year of their contract. Raiola could be renegotiated and extended, but I think it's unlikely. I believe the Lions will address Raiola's contract near the end of this year or next year.
Calvin Johnson - Kirwan also mentions that Johnson may be a candidate for a restructure, but according to the CBA agreement, Article XVII Entering Player Pool, Section 4(i) states:
- The Player Contract of a Rookie may not be renegotiated until after his Club’s final game of the second NFL season following the signing of such Player Contract.
Therefore, Calvin Johnson's contract cannot be renegotiated until after the final game of this season, at the earliest.
Jason Hanson - Hanson is in the final year of his contract and is due a base salary of $1,650,000. Even at 38, Hanson likely has another 10 years left in him (if he so chooses). He is a definite candidate to be extended, with an extension reducing his 2008 salary cap cost. The odd thing, for me is . . . John Deraney. Deraney has been on the Lions roster since last May and I believe worked out mostly as a punter, even though at NC State, he served as both the teams' kicker and punter. When he went on IR last August and no injury settlement was reached (common for camp fodder that get injured), I thought that maybe Nick Harris' job was in jeopardy, but the Lions gave Harris a 5 year extension last September, so obviously Harris' job is safe. Could Hanson be a draft day trade to a Super Bowl contender on draft day? We all know how important a kicker can be in the playoffs and Hanson would be an immediate upgrade on almost any team out there. Could Deraney be in the Lions future plans at kicker? I find it hard to believe, he was a good college kicker, but far from stellar, but nonetheless, it just seems odd to me.
Brian Kelly - Initially, because financial details were not disclosed on Kelly's contract, I had to make an educated guess on what Kelly's current year cap cost might have been. Based on the information from Kirwan, I'm going to change his estimated signing bonus from $3M to $4M and his updated current year cap cost would be $2,590,053.
- 1,333,333 signing bonus proration ($4M over 3 years)
- 1,250,000 base salary
- 6,720 workout bonus
Current year cap status, $668,000 under the cap.
Tuesday, March 18, 2008
Updated Player Costs
7:00pm EDT
Over the past weekend, I received some really good information on player contracts, Lions current cap status and cap commitments for the future. With the recent signings in free agency, I had to make several educated guesses on some of the monies received by the players. The recently obtained information provides better insight and I can more accurately project the Lions current cap costs. Also, I believe that the Lions are so tight against the cap, that they'll need to cut someone else before they officially sign Tatum bell.
John Kitna - As I reported earlier, Jon had reached an escalator in his contract that bumped his base pay for 2008 from $1.95M to $2.95M. In addition to that, he also reached an escalator that bumped a roster bonus due this year from $500K to $1M plus he has a playing time incentive that based on last years playing time is deemed to be likely-to-be-earned (LTBE) of $1M and is due a workout bonus of $50,000. He originally signed a 4 year contract that included a $3.5M signing bonus. His current year cap cost is $5.875M.
Roy Williams - As I reported earlier, Roy had reached an escalator in his contract that bumped his base pay by $3.15M, from $574,500 to $3,724,500. As a part of that escalator, Roy was due a Roster bonus of $1,110,000. As a result of reaching the probowl in 2006, he's also due a workout bonus of $100,000. During the summer of 2004, Roy originally signed a 6 year contract that is voidable after this season and included a signing bonus of $4.5M. The Lions also exercised two options that at the time of execution, altered the details of the contract. The first option was for $6,662,500 in 2005 and the second option was for $990,000 in 2006, those option bonuses allow for a $971,667 deion credit (I'll explain this in another blog). His current year cap cost is $6,292,833.
Michael Gaines - When I originally reported his cap cost, I classified the entire $3M of guaranteed money as signing bonus money. According to the new information, $2.4M was signing bonus and $600,000 was a roster bonus due this year, plus a $500,000 roster bonus due in 2011. Along with his base pay of $800,000, his corrected current year cap cost is $2,000,000.
Keith Smith - When I had originally estimated his cap cost, I classified the $2M guaranteed as $1.75M signing bonus and a $250K roster bonus. The new information shows that the entire $2M was signing bonus money on his 2 year contract. Therefore, along with Smith's base pay of $1M, his corrected current year cap cost is $2M.
Leigh Bodden - When I last projected his current year cap cost, I estimated that his bonuses to be $1.5M. His bonuses due this year are $500K roster bonus and a $500K likely-to-be-earned playing time and interceptions incentive. He's also due $818,750 in bonuses in 2009. His updated current year cap cost is $2.7M.
Travis Fisher - When I originally estimated his cap cost , I estimated that he was due $1.75M in base salary and $2.5M in signing bonus. He actually received a $2.25M signing bonus and a $250,000 roster bonus to go along with his $1.75M base salary. I correctly assumed that he is also due a $500,000 roster bonus in 2010. His updated current year cap cost is $2.75M.
Chuck Darby - I had very little information when I originally estimated his current year cap cost. I guessed at a $3M signing bonus. He actually received a $1.2M signing bonus and a $965,000 roster bonus, with $100,000 workout bonuses due in each year of his contract. Those costs, along with his $730,000 base salary puts his current year cap cost at $2.195M.
Drew Stanton - Either has received or will receive a $1.245M option bonus that reduced his base pay for the current season from $785,000 to $370,000. He's also due a $513,900 NLTBE bonus that is based on playing time. Unless he wins the starting job or inherits it due to injury, he likely won't obtain that bonus and it will carry over to the following season. His current year cap cost is $785,000.
Kalimba Edwards - He was designated as a June 1st cut. On June 1st, the Lions will receive $4M in cap savings and will have $2M worth of dead cap space in 2009. I explain it in a little more detail in an earlier blog entry. The $4M in cap savings will provide for the bulk of the rookie cap space needed (usually a little over $5M per year, but won't be determined until after the draft). Current year cap savings $0 (nothing until June 1st).
Current year cap status $2.4M under, without including the Brian Kelly signing.
Over the past weekend, I received some really good information on player contracts, Lions current cap status and cap commitments for the future. With the recent signings in free agency, I had to make several educated guesses on some of the monies received by the players. The recently obtained information provides better insight and I can more accurately project the Lions current cap costs. Also, I believe that the Lions are so tight against the cap, that they'll need to cut someone else before they officially sign Tatum bell.
John Kitna - As I reported earlier, Jon had reached an escalator in his contract that bumped his base pay for 2008 from $1.95M to $2.95M. In addition to that, he also reached an escalator that bumped a roster bonus due this year from $500K to $1M plus he has a playing time incentive that based on last years playing time is deemed to be likely-to-be-earned (LTBE) of $1M and is due a workout bonus of $50,000. He originally signed a 4 year contract that included a $3.5M signing bonus. His current year cap cost is $5.875M.
Roy Williams - As I reported earlier, Roy had reached an escalator in his contract that bumped his base pay by $3.15M, from $574,500 to $3,724,500. As a part of that escalator, Roy was due a Roster bonus of $1,110,000. As a result of reaching the probowl in 2006, he's also due a workout bonus of $100,000. During the summer of 2004, Roy originally signed a 6 year contract that is voidable after this season and included a signing bonus of $4.5M. The Lions also exercised two options that at the time of execution, altered the details of the contract. The first option was for $6,662,500 in 2005 and the second option was for $990,000 in 2006, those option bonuses allow for a $971,667 deion credit (I'll explain this in another blog). His current year cap cost is $6,292,833.
Michael Gaines - When I originally reported his cap cost, I classified the entire $3M of guaranteed money as signing bonus money. According to the new information, $2.4M was signing bonus and $600,000 was a roster bonus due this year, plus a $500,000 roster bonus due in 2011. Along with his base pay of $800,000, his corrected current year cap cost is $2,000,000.
Keith Smith - When I had originally estimated his cap cost, I classified the $2M guaranteed as $1.75M signing bonus and a $250K roster bonus. The new information shows that the entire $2M was signing bonus money on his 2 year contract. Therefore, along with Smith's base pay of $1M, his corrected current year cap cost is $2M.
Leigh Bodden - When I last projected his current year cap cost, I estimated that his bonuses to be $1.5M. His bonuses due this year are $500K roster bonus and a $500K likely-to-be-earned playing time and interceptions incentive. He's also due $818,750 in bonuses in 2009. His updated current year cap cost is $2.7M.
Travis Fisher - When I originally estimated his cap cost , I estimated that he was due $1.75M in base salary and $2.5M in signing bonus. He actually received a $2.25M signing bonus and a $250,000 roster bonus to go along with his $1.75M base salary. I correctly assumed that he is also due a $500,000 roster bonus in 2010. His updated current year cap cost is $2.75M.
Chuck Darby - I had very little information when I originally estimated his current year cap cost. I guessed at a $3M signing bonus. He actually received a $1.2M signing bonus and a $965,000 roster bonus, with $100,000 workout bonuses due in each year of his contract. Those costs, along with his $730,000 base salary puts his current year cap cost at $2.195M.
Drew Stanton - Either has received or will receive a $1.245M option bonus that reduced his base pay for the current season from $785,000 to $370,000. He's also due a $513,900 NLTBE bonus that is based on playing time. Unless he wins the starting job or inherits it due to injury, he likely won't obtain that bonus and it will carry over to the following season. His current year cap cost is $785,000.
Kalimba Edwards - He was designated as a June 1st cut. On June 1st, the Lions will receive $4M in cap savings and will have $2M worth of dead cap space in 2009. I explain it in a little more detail in an earlier blog entry. The $4M in cap savings will provide for the bulk of the rookie cap space needed (usually a little over $5M per year, but won't be determined until after the draft). Current year cap savings $0 (nothing until June 1st).
Current year cap status $2.4M under, without including the Brian Kelly signing.
Thursday, March 13, 2008
Several Free Agent Transactions
7:20PM EDT
The Lions have been busy over the last several days. First, I need to update a couple of previously reported cap costs for Keith Smith and Leigh Bodden. Then I'll break down the official signings of Travis Fisher, George Foster and Chuck Darby. Lastly, I'll address the cap implications from the release of Kevin Jones, Kalimba Edwards and Blaine Saipaia.
Keith Smith
According to John Clayton of ESPN, Smith agreed to a 2 year $5M contract. His base salaries are $1M in 2008 and $2M in 2009. The other $2M of the contract can be either signing bonus and/or roster bonuses in 2008 or 2009. I'm going to assume that $1.75M is a signing bonus and the other $250K is a roster bonus due if he makes the opening day roster. Current year cap cost $2.125M.
Leigh Bodden
The Browns extended Bodden's contract in December of 2005. He received bonuses of $1.5M in 2006 and $1.1M in 2007. Based on that and the fact that Jason Cole of Yahoo.com reported that the Lions as $4.4M under the cap on March 6th, I'm going to assume that he has a bonus due to him of $1.5M. That added with his base salary of $1.7M would put his current year cap cost at $3.2M.
Travis Fisher
According to profootballtalk.com, Fisher agreed to a 3 year $9M deal with $4.25M due in 2008. His base salaries are $1.75M in 2008, $1.75M in 2009 and $2.5M in 2010. I would assume that the other $2.5M of his 2008 compensation is his signing bonus, while the other $500K that makes up his $9M total contract is a roster bonus due in 2010. Under the above assumption, Fisher's current year cap cost would be $2.58M.
George Foster
According to John Clayton of ESPN, Foster agreed to a 1 year $1.1M deal with a base salary of $800,000. The other $300,000 of Foster's contract is probably a signing bonus. Either way, his current year cap cost is $1.1M.
Chuck Darby
Darby agreed to a 3 year deal with the Lions. He's due base salaries of $730K in 2008, $745K in 2009 and $760K in 2010. Other financial terms were not disclosed. Based on what he's made in the past and his current age, I'd guess that his signing bonus was $3M. With the above assumptions, his current year cap cost would be $1.73M.
Tatum Bell
According to John Clayton of ESPN, Bell agreed to a 1 year $1.6M contract. The contract hasn't been officially signed and submitted to the NFL or the NFLPA, but irregardless of how much is base salary or bonus money, Bell's current year cap cost will be $1.6M.
Blaine Saipaia
In 2007, the Lions signed Saipaia to a 2 year contract with a $300,000 signing bonus. Saipaia was due to make $775,000 that the Lions will not now have to pay. As a result of Saipaia's release, he provides a current year cap savings of $775K.
Kevin Jones
Jones signed a rookie year contract that gave him a two-tiered signing bonus. The 2nd year bonus is an option bonus that alters the contract but allows the option bonus to be amortized over the life of the contract. He received a $1.2M signing bonus in 2004 and a $1.805M option bonus in 2005. During the 2007 season, Jones had reached an escalator in his contract that increased his 2008 base salary by $1.86M and was scheduled to make a base salary of $2.37M this year plus, according to John Clayton, a roster bonus of $142,500. As a result of his release, he gives the Lions a current year cap savings of $2.51M.
Kalimba Edwards
For a detailed breakdown of Edwards contract, check out my June 1st designation blog entry. Because of the immediate need for cap space, I doubt that Edwards was designated as a June 1st cut and he was therefore released outright. His current year cap savings is $1.9M.
Based on the above transactions, I have the Lions about $3.2M under the current year cap and expect almost the entire amount to be used up when Kalvin Pearson and Brian Kelly officially sign.
The Lions have been busy over the last several days. First, I need to update a couple of previously reported cap costs for Keith Smith and Leigh Bodden. Then I'll break down the official signings of Travis Fisher, George Foster and Chuck Darby. Lastly, I'll address the cap implications from the release of Kevin Jones, Kalimba Edwards and Blaine Saipaia.
Keith Smith
According to John Clayton of ESPN, Smith agreed to a 2 year $5M contract. His base salaries are $1M in 2008 and $2M in 2009. The other $2M of the contract can be either signing bonus and/or roster bonuses in 2008 or 2009. I'm going to assume that $1.75M is a signing bonus and the other $250K is a roster bonus due if he makes the opening day roster. Current year cap cost $2.125M.
Leigh Bodden
The Browns extended Bodden's contract in December of 2005. He received bonuses of $1.5M in 2006 and $1.1M in 2007. Based on that and the fact that Jason Cole of Yahoo.com reported that the Lions as $4.4M under the cap on March 6th, I'm going to assume that he has a bonus due to him of $1.5M. That added with his base salary of $1.7M would put his current year cap cost at $3.2M.
Travis Fisher
According to profootballtalk.com, Fisher agreed to a 3 year $9M deal with $4.25M due in 2008. His base salaries are $1.75M in 2008, $1.75M in 2009 and $2.5M in 2010. I would assume that the other $2.5M of his 2008 compensation is his signing bonus, while the other $500K that makes up his $9M total contract is a roster bonus due in 2010. Under the above assumption, Fisher's current year cap cost would be $2.58M.
George Foster
According to John Clayton of ESPN, Foster agreed to a 1 year $1.1M deal with a base salary of $800,000. The other $300,000 of Foster's contract is probably a signing bonus. Either way, his current year cap cost is $1.1M.
Chuck Darby
Darby agreed to a 3 year deal with the Lions. He's due base salaries of $730K in 2008, $745K in 2009 and $760K in 2010. Other financial terms were not disclosed. Based on what he's made in the past and his current age, I'd guess that his signing bonus was $3M. With the above assumptions, his current year cap cost would be $1.73M.
Tatum Bell
According to John Clayton of ESPN, Bell agreed to a 1 year $1.6M contract. The contract hasn't been officially signed and submitted to the NFL or the NFLPA, but irregardless of how much is base salary or bonus money, Bell's current year cap cost will be $1.6M.
Blaine Saipaia
In 2007, the Lions signed Saipaia to a 2 year contract with a $300,000 signing bonus. Saipaia was due to make $775,000 that the Lions will not now have to pay. As a result of Saipaia's release, he provides a current year cap savings of $775K.
Kevin Jones
Jones signed a rookie year contract that gave him a two-tiered signing bonus. The 2nd year bonus is an option bonus that alters the contract but allows the option bonus to be amortized over the life of the contract. He received a $1.2M signing bonus in 2004 and a $1.805M option bonus in 2005. During the 2007 season, Jones had reached an escalator in his contract that increased his 2008 base salary by $1.86M and was scheduled to make a base salary of $2.37M this year plus, according to John Clayton, a roster bonus of $142,500. As a result of his release, he gives the Lions a current year cap savings of $2.51M.
Kalimba Edwards
For a detailed breakdown of Edwards contract, check out my June 1st designation blog entry. Because of the immediate need for cap space, I doubt that Edwards was designated as a June 1st cut and he was therefore released outright. His current year cap savings is $1.9M.
Based on the above transactions, I have the Lions about $3.2M under the current year cap and expect almost the entire amount to be used up when Kalvin Pearson and Brian Kelly officially sign.
Saturday, March 8, 2008
June 1st Designation
6:20pm EST
June 1st is an important date in the NFL. Players cut before this date, must have any unamortized signing bonus accelerated to the current year. Players cut after this date, have any unamortized signing bonus money accelerated to the next season. Several years ago, before teams got the hang of the salary cap, June 1st cuts were a big deal and there would be several quality veterans that would be cut on this date. With the large salary cap increases (42% increase in the last three years) and the fact that teams have learned to manage their cap much better, there isn't as great of a need to wait until June 1st to cut players.
With the most recent CBA extension, there was a new rule implemented. It allowed teams to designate up to two players as June 1 cuts, release them immediately and have the cap implications treated as if the player(s) were cut on June 1st. Both the owners and the players wanted this designation. The owners because they could release players now, free up a roster spot to sign veteran free agents. The NFLPA wanted this rule, because it allowed the players to be free to negotiate a contract earlier in free agency instead of having to wait until being officially cut on June 1 to look for a new team. In the past, most teams had used most of their current year cap space by June 1st and had little cap space to sign these players. Players released after June 1st often times had very limited options.
I see two potential candidates for possible June 1st designation
Kalimba Edwards
Edwards was a healthy inactive for the final two games of the 2007 season, he's due a base salary of $3.9M and $100,000 workout bonus. The Lions are not going to pay that kind of cash to a player that they didn't even think could help their team late in the 2007 season. In 2006, Edwards signed a 5 year contract and received an $5M signing bonus. $1M is allocated to each year ($5M/5 years) and $1M is already accounted for in the Lions cap costs for 2008, while another $1M is allocated to 2009 and 2010. If Edwards is released outright or traded, the Lions will save $2M against the cap ($4M in compensation less the $2M allocated to 2009 and 2010). If he's designated as a June 1st cut, the Lions will save $4M against the current year cap on June 1st and have $2M of dead cap in 2009. Dead cap is having a cap cost for a player without having the player on the team.
Kenoy Kennedy
The Lions have recently drafted two 2nd round safeties, one in each of the past two years, Gerald Alexander in 2007 and Daniel Bullocks in 2006. They recently signed former Tampa Bay Buccaneers safety, Dwight Smith to a two year contract and signed Tampa Bay Restricted Free Agent, Kalvin Pearson to an offer sheet (The Bucs have until mid next week to decide to match or not). The Lions have never carried more than four safeties and Kennedy looks to be the odd man out. In 2005, the Lions signed Kennedy to a 5 year contract and gave him a $3.4M signing bonus, $680K allocated to each season ($3.4M/5 years). He's due $2.7M in base salary for the current season. The base salary of $2.7M and the 2008 portion of the signing bonus is included in the Lions current year cap figure. If Kennedy is traded or released outright, the Lions will save $2.02M against the 2008 cap ($2.7M less the $680K allocated to 2009). If they release Kennedy and designate him as a June 1 cut, they'll save $2.7M against the current year cap and have $680K of dead cap space in 2009.
Based on what the Lions have done thus far in free agency, leads me to believe that they probably designated Fernando Bryant as a June 1st cut.
Fernando Bryant
When Bryant was cut on 02/25/08, he had two years remaining on his contract. Back in 2004, Bryant signed a 6 year contract with the Lions, he received a signing bonus of $7M, which was prorated proportionately over the entire 6 years of his contract ($1,166,667 per year). In 2008, Bryant was due to receive a base salary of $3.35M, a roster bonus in early March of $500K and his current year cap cost was scheduled to be $5.017M (3.35M+500K+1.167M). When he was released (assuming the Lions didn't use the June 1 designation on him), they saved his current year compensation of $3.85M less the unamortized portion of his signing bonus allocated to 2009, for a net savings of $2.683M. If Bryant was treated as a June 1 cut, the Lions would save an additional $1,167M.
Travis Fisher, Chuck Darby and Brian Kelly have all recently signed three year contracts and George Foster signed a one year deal. Cap costs for the recent signings will be calculated when more details become available.
Estimated Cap Status $8M Under
June 1st is an important date in the NFL. Players cut before this date, must have any unamortized signing bonus accelerated to the current year. Players cut after this date, have any unamortized signing bonus money accelerated to the next season. Several years ago, before teams got the hang of the salary cap, June 1st cuts were a big deal and there would be several quality veterans that would be cut on this date. With the large salary cap increases (42% increase in the last three years) and the fact that teams have learned to manage their cap much better, there isn't as great of a need to wait until June 1st to cut players.
With the most recent CBA extension, there was a new rule implemented. It allowed teams to designate up to two players as June 1 cuts, release them immediately and have the cap implications treated as if the player(s) were cut on June 1st. Both the owners and the players wanted this designation. The owners because they could release players now, free up a roster spot to sign veteran free agents. The NFLPA wanted this rule, because it allowed the players to be free to negotiate a contract earlier in free agency instead of having to wait until being officially cut on June 1 to look for a new team. In the past, most teams had used most of their current year cap space by June 1st and had little cap space to sign these players. Players released after June 1st often times had very limited options.
I see two potential candidates for possible June 1st designation
Kalimba Edwards
Edwards was a healthy inactive for the final two games of the 2007 season, he's due a base salary of $3.9M and $100,000 workout bonus. The Lions are not going to pay that kind of cash to a player that they didn't even think could help their team late in the 2007 season. In 2006, Edwards signed a 5 year contract and received an $5M signing bonus. $1M is allocated to each year ($5M/5 years) and $1M is already accounted for in the Lions cap costs for 2008, while another $1M is allocated to 2009 and 2010. If Edwards is released outright or traded, the Lions will save $2M against the cap ($4M in compensation less the $2M allocated to 2009 and 2010). If he's designated as a June 1st cut, the Lions will save $4M against the current year cap on June 1st and have $2M of dead cap in 2009. Dead cap is having a cap cost for a player without having the player on the team.
Kenoy Kennedy
The Lions have recently drafted two 2nd round safeties, one in each of the past two years, Gerald Alexander in 2007 and Daniel Bullocks in 2006. They recently signed former Tampa Bay Buccaneers safety, Dwight Smith to a two year contract and signed Tampa Bay Restricted Free Agent, Kalvin Pearson to an offer sheet (The Bucs have until mid next week to decide to match or not). The Lions have never carried more than four safeties and Kennedy looks to be the odd man out. In 2005, the Lions signed Kennedy to a 5 year contract and gave him a $3.4M signing bonus, $680K allocated to each season ($3.4M/5 years). He's due $2.7M in base salary for the current season. The base salary of $2.7M and the 2008 portion of the signing bonus is included in the Lions current year cap figure. If Kennedy is traded or released outright, the Lions will save $2.02M against the 2008 cap ($2.7M less the $680K allocated to 2009). If they release Kennedy and designate him as a June 1 cut, they'll save $2.7M against the current year cap and have $680K of dead cap space in 2009.
Based on what the Lions have done thus far in free agency, leads me to believe that they probably designated Fernando Bryant as a June 1st cut.
Fernando Bryant
When Bryant was cut on 02/25/08, he had two years remaining on his contract. Back in 2004, Bryant signed a 6 year contract with the Lions, he received a signing bonus of $7M, which was prorated proportionately over the entire 6 years of his contract ($1,166,667 per year). In 2008, Bryant was due to receive a base salary of $3.35M, a roster bonus in early March of $500K and his current year cap cost was scheduled to be $5.017M (3.35M+500K+1.167M). When he was released (assuming the Lions didn't use the June 1 designation on him), they saved his current year compensation of $3.85M less the unamortized portion of his signing bonus allocated to 2009, for a net savings of $2.683M. If Bryant was treated as a June 1 cut, the Lions would save an additional $1,167M.
Travis Fisher, Chuck Darby and Brian Kelly have all recently signed three year contracts and George Foster signed a one year deal. Cap costs for the recent signings will be calculated when more details become available.
Estimated Cap Status $8M Under
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