6:20pm EST
Aveion Cason
Cason is now a 7 year veteran who was a cut and resigned several times throughout the 2007 season. Cason is a likely candidate for a Vet Minimum contract. His $730,000 base salary is the minimum salary for a 7 year veteran and $285,000 will be subsidized by the NFLPA. He probably received a $40,000 signing bonus and will have a current year cap cost of $485,000.
Corey Hulsey
Hulsey is a 5 year veteran who didn't play in 2007. He played with Oakland in 2006 and prior. Hulsey signed for the Vet Minimum for a 5 year veteran of $605,000. $160,000 of his salary will be subsidized by the NFLPA. If he received a $40,000 signing bonus (the maximum for a vet minimum contract), he'll have a current year cap cost of $485,000.
Travis Fisher and Chuck Darby have both recently signed three year contracts with the Lions, cap costs will be calculated as details become available.
Estimated Cap Space $6.9M under
Friday, March 7, 2008
Thursday, March 6, 2008
RFA and Kalvin Pearson
7:50am EST
Restricted Free Agency
As discussed in an earlier blog entry, http://lionscap.blogspot.com/2008/02/free-agency-begins.html, players with 3 accrued seasons, that have been given a required tender are considered a Restricted Free Agent (RFA) and are free to negotiate a player contract with any team in the NFL. If they reach an agreement with a team, the New club and the player sign an offer sheet. An offer sheet outlines the principles terms of a contract, including the number of years, the guaranteed salary, the signing bonus, base pay, etc. Once an offer sheet is executed, the RFA submits the offer sheet to his prior club, who has one week to exercise their right of first refusal (ROFR). If they exercise this ROFR, they agree to a contract with the RFA that contains the principle terms of the offer sheet. If the prior club declines to exercise their ROFR, the new club and the player shall be deemed to have entered into a binding player contract for the principle terms outlined in the offer sheet. The prior club will then receive draft choice compensation, if any, from the new club equal to the amount of the required tender given to the player at the start of free agency.
Kalvin Pearson
Kalvin Pearson is a RFA that was given a general tender by Tampa Bay, was originally an undrafted rookie and therefore, has no draft choice compensation attached to his tender. According to ESPN, the Lions executed an offer sheet for a 3 year, $3.5M contract that includes a signing bonus of $1.1M with Kalvin Pearson. Tampa Bay has one week to decide if they want to exercise the ROFR and match the offer sheet.
Restricted Free Agency
As discussed in an earlier blog entry, http://lionscap.blogspot.com/2008/02/free-agency-begins.html, players with 3 accrued seasons, that have been given a required tender are considered a Restricted Free Agent (RFA) and are free to negotiate a player contract with any team in the NFL. If they reach an agreement with a team, the New club and the player sign an offer sheet. An offer sheet outlines the principles terms of a contract, including the number of years, the guaranteed salary, the signing bonus, base pay, etc. Once an offer sheet is executed, the RFA submits the offer sheet to his prior club, who has one week to exercise their right of first refusal (ROFR). If they exercise this ROFR, they agree to a contract with the RFA that contains the principle terms of the offer sheet. If the prior club declines to exercise their ROFR, the new club and the player shall be deemed to have entered into a binding player contract for the principle terms outlined in the offer sheet. The prior club will then receive draft choice compensation, if any, from the new club equal to the amount of the required tender given to the player at the start of free agency.
Kalvin Pearson
Kalvin Pearson is a RFA that was given a general tender by Tampa Bay, was originally an undrafted rookie and therefore, has no draft choice compensation attached to his tender. According to ESPN, the Lions executed an offer sheet for a 3 year, $3.5M contract that includes a signing bonus of $1.1M with Kalvin Pearson. Tampa Bay has one week to decide if they want to exercise the ROFR and match the offer sheet.
Wednesday, March 5, 2008
Escalators
8:35am EST
Sometimes a player's contract, especially a rookie contract, contains escalator. An escalator is a provision in the player's contract that increases the salary paid in the following season. They work much the same way as LTBE and NLTBE incentive bonuses, but instead of paying the bonus out on a specific date, the player's base salary for the following season increases and is paid when the player receives his base pay salary checks. The Lions have had two players that have recently hit an escalator.
Jon Kitna
As I had said in a previous blog, over the past two seasons, Kitna has had two very good statistical seasons and it wouldn't be surprising if he had an incentive bonus that was triggered. According to the NFLPA, his base salary recently was increased from $1.95M to $2.95M. He triggered one of the escalators that was written into his contract and instead of it being a bonus payment, it increased his base salary for 2008. Current year cap cost $3.825M.
Roy Williams
Roy has also had very good statistical seasons over his first four seasons in the league. In 2006, he hit an escalator that increased his base salary by $2.85M, from $535,000 to $3,385,000. Similarly, in 2007, he triggered another escalator that increased his 2008 base salary by $3.1M, from $574,500 to $3,724,500. Current year cap cost $5.1M.
In a prior blog entry, I tried to explain how both ProFootballTalk and Adam Schefter could both be correct with their reports on the Lions cap status. On 02/19/2008, ProFootballTalk reported that the Lions were $17.9M under the cap and on 02/21/2008 Adam Schefter reported that the Lions were only $6.8M under the cap. ProFootballTalk's figure didn't include the Kitna or Williams' escalators of $4.1M and it also did not include the $5.35M cap adjustment that was reported by Frank Reuban of SI.com. Thus far, we've explained about $9.5M of the $11.1M difference between the two reports and the other $1.6M is probably incentive bonuses within player contracts that are being reclassified from NLTBE to LTBE bonuses.
Sometimes a player's contract, especially a rookie contract, contains escalator. An escalator is a provision in the player's contract that increases the salary paid in the following season. They work much the same way as LTBE and NLTBE incentive bonuses, but instead of paying the bonus out on a specific date, the player's base salary for the following season increases and is paid when the player receives his base pay salary checks. The Lions have had two players that have recently hit an escalator.
Jon Kitna
As I had said in a previous blog, over the past two seasons, Kitna has had two very good statistical seasons and it wouldn't be surprising if he had an incentive bonus that was triggered. According to the NFLPA, his base salary recently was increased from $1.95M to $2.95M. He triggered one of the escalators that was written into his contract and instead of it being a bonus payment, it increased his base salary for 2008. Current year cap cost $3.825M.
Roy Williams
Roy has also had very good statistical seasons over his first four seasons in the league. In 2006, he hit an escalator that increased his base salary by $2.85M, from $535,000 to $3,385,000. Similarly, in 2007, he triggered another escalator that increased his 2008 base salary by $3.1M, from $574,500 to $3,724,500. Current year cap cost $5.1M.
In a prior blog entry, I tried to explain how both ProFootballTalk and Adam Schefter could both be correct with their reports on the Lions cap status. On 02/19/2008, ProFootballTalk reported that the Lions were $17.9M under the cap and on 02/21/2008 Adam Schefter reported that the Lions were only $6.8M under the cap. ProFootballTalk's figure didn't include the Kitna or Williams' escalators of $4.1M and it also did not include the $5.35M cap adjustment that was reported by Frank Reuban of SI.com. Thus far, we've explained about $9.5M of the $11.1M difference between the two reports and the other $1.6M is probably incentive bonuses within player contracts that are being reclassified from NLTBE to LTBE bonuses.
Tuesday, March 4, 2008
Lions Shore up the TE position
6:20pm EST
With Dan Campbell being placed on IR last year and the uncertainty of when he'll be fully recovered from his elbow injury, the Lions resigned John Owens and signed UFA Michael Gaines.
John Owens
Owens is now a 5 year veteran who was originally signed midway through last season to help as a blocking TE. Although there are no reports that I can find on how much he signed for, the fact that his base salary is $605,000, leads me to believe that he signed for the Veteran Minimum. For five year veterans whose contract qualifies as a vet minimum contract, the NFLPA pays $160K of the contract. This also saves the team with $160K of cap space. The contract cannot have a signing bonus in excess of $40,000 and must be for the league salary minimum for that players experience. The Lions usually pay the $40K signing bonus to veterans that they sign this early in free agency. If this is the case, Owens' current year cap cost would be $485,000.
Michael Gaines
According to ESPN.com and the local newspapers, Michael Gaines agreed to a 4 year, $10M contract with $3M guaranteed. The NFLPA's website has his base salaries as $800K for 2008, $1.6M for 2009, $2.1M for 2010 and $2M for 2011. The $3M that is guaranteed is likely the signing bonus that the Lions gave Gaines. The other $500K that makes up the $10M contract is likely either a roster bonus due in 2010 or two $250K roster bonuses due in each of 2009 and 2010. Either way, Gaines' current year cap cost would be $1.5M.
Estimated cap space $7.15M under
With Dan Campbell being placed on IR last year and the uncertainty of when he'll be fully recovered from his elbow injury, the Lions resigned John Owens and signed UFA Michael Gaines.
John Owens
Owens is now a 5 year veteran who was originally signed midway through last season to help as a blocking TE. Although there are no reports that I can find on how much he signed for, the fact that his base salary is $605,000, leads me to believe that he signed for the Veteran Minimum. For five year veterans whose contract qualifies as a vet minimum contract, the NFLPA pays $160K of the contract. This also saves the team with $160K of cap space. The contract cannot have a signing bonus in excess of $40,000 and must be for the league salary minimum for that players experience. The Lions usually pay the $40K signing bonus to veterans that they sign this early in free agency. If this is the case, Owens' current year cap cost would be $485,000.
Michael Gaines
According to ESPN.com and the local newspapers, Michael Gaines agreed to a 4 year, $10M contract with $3M guaranteed. The NFLPA's website has his base salaries as $800K for 2008, $1.6M for 2009, $2.1M for 2010 and $2M for 2011. The $3M that is guaranteed is likely the signing bonus that the Lions gave Gaines. The other $500K that makes up the $10M contract is likely either a roster bonus due in 2010 or two $250K roster bonuses due in each of 2009 and 2010. Either way, Gaines' current year cap cost would be $1.5M.
Estimated cap space $7.15M under
Sunday, March 2, 2008
The Shaun Rogers/Leigh Bodden Trade
8:35am EST
Shaun Rogers was traded to the Bengals for a 3rd and 5th rounder, which was rescinded and then he was finally dealt to the Browns for Leigh Bodden. My guess (and it's purely a guess), is that after the trade was agreed to, Cincinnati was either under the impression or was going to wait until after midnight (when the Lions would have been responsible for Rogers roster bonus) to submit the trade proposal to the league. Millen balked at the idea that he'd pay the roster bonus and traded Rogers to the Browns. Which is ok, I personally like that trade better. It's purely a guess on my part.
Breaking down Shaun Rogers contract
In December of 2004, Shaun Rogers signed an extension. When he signed the extension, he received a $9M signing bonus. In March of 2005, he received a 3.5M guaranteed roster bonus. The contract called for him to receive base salaries of $650K for 2005, $850K for 2006, $1.5M for 2007, $4.25M for 2008, $5.25M for 2009 and $7M in 2010. He was also due $1M roster bonuses (non-guaranteed) on the first of March in 2008, 2009 and 2010.
When a player receives a signing bonus, the CBA allows the signing bonus to be amortized over the length of the contract. However, for the 2004 season the maximum proration for signing bonuses to be amortized was six years. So, the Signing bonus is allocated proportionately over the first 6 years of the contract (2004-2009) and nothing is allocated to the final year of the contract. $1.5M allocated to each year through 2009.
The guaranteed roster bonus, for salary cap purposes, is treated just like a signing bonus. The $3.5M is amortized over the length of the contract. For the 2005 season (the year the bonus was paid), the maximum proration of signing bonuses was 5 years. The roster bonus would have been amortized proportionately over the five years from 2005-2009 or $700K per year.
According to Rogers contract, his salary cap figure by year, would have been as follows:
2004 $2,213,750 (1.5M added to his current 2004 cap figure of $713,750)
2005 $2.85M (650K in salary, 1.5M in SB amortization and 700K in RB amortization)
2006 $3.05M (850K in salary, 1.5M in SB amortization and 700K in RB amortization)
2007 $3.7M (1.5M in salary, 1.5M in SB amortization and 700K in RB amortization)
2008 $7.45M (4.25M in salary, 1.5M in SB amort, 700K in RB amort, 1M in RB)
2009 $8.45M (5.25M in salary, 1.5M in SB amort, 700K in RB amort, 1M in RB)
2010 $8M (7M in salary and 1M in RB)
In 2008, Shaun Rogers would have been included in the Lions cap calculation for 7.45M, when he was traded, we would have saved his salary (4.25M) and his roster bonus (1.M), but we would also have to accelerate the remaining unamortized portion of his bonuses (1.5M and 700K) that were allocated to 2009. So the cap effect of trading Rogers was $3.05M cap savings). His cap figure on our books for 2008 would be 4.4M (2.2M in 2008 amortization and 2.2M in accelerated 2009 amortization), commonly referred to as dead cap.
Leigh Bodden
Leigh Bodden was acquired in the trade of Rogers. He is due base salaries of 1.7M in 2008 and 1.8M in 2009. Current year Cap cost $1.7M.
Assuming that Adam Schefter was correct when he reported that the Lions were 6.8M under the cap on 02/21/08. And since he's looking at actual reports generated by the league, there's no reason to assume that he isn't correct. From now to the start of the season, teams only must count the top 51 player cap costs toward their cap figure. So, by my estimation, we are about 8.5M under the cap.
Askthecommish.com has a nice FAQ section that explains a lot of the rules of the salary cap and how it relates to player contracts. http://www.askthecommish.com/salarycap/faq.asp
Shaun Rogers was traded to the Bengals for a 3rd and 5th rounder, which was rescinded and then he was finally dealt to the Browns for Leigh Bodden. My guess (and it's purely a guess), is that after the trade was agreed to, Cincinnati was either under the impression or was going to wait until after midnight (when the Lions would have been responsible for Rogers roster bonus) to submit the trade proposal to the league. Millen balked at the idea that he'd pay the roster bonus and traded Rogers to the Browns. Which is ok, I personally like that trade better. It's purely a guess on my part.
Breaking down Shaun Rogers contract
In December of 2004, Shaun Rogers signed an extension. When he signed the extension, he received a $9M signing bonus. In March of 2005, he received a 3.5M guaranteed roster bonus. The contract called for him to receive base salaries of $650K for 2005, $850K for 2006, $1.5M for 2007, $4.25M for 2008, $5.25M for 2009 and $7M in 2010. He was also due $1M roster bonuses (non-guaranteed) on the first of March in 2008, 2009 and 2010.
When a player receives a signing bonus, the CBA allows the signing bonus to be amortized over the length of the contract. However, for the 2004 season the maximum proration for signing bonuses to be amortized was six years. So, the Signing bonus is allocated proportionately over the first 6 years of the contract (2004-2009) and nothing is allocated to the final year of the contract. $1.5M allocated to each year through 2009.
The guaranteed roster bonus, for salary cap purposes, is treated just like a signing bonus. The $3.5M is amortized over the length of the contract. For the 2005 season (the year the bonus was paid), the maximum proration of signing bonuses was 5 years. The roster bonus would have been amortized proportionately over the five years from 2005-2009 or $700K per year.
According to Rogers contract, his salary cap figure by year, would have been as follows:
2004 $2,213,750 (1.5M added to his current 2004 cap figure of $713,750)
2005 $2.85M (650K in salary, 1.5M in SB amortization and 700K in RB amortization)
2006 $3.05M (850K in salary, 1.5M in SB amortization and 700K in RB amortization)
2007 $3.7M (1.5M in salary, 1.5M in SB amortization and 700K in RB amortization)
2008 $7.45M (4.25M in salary, 1.5M in SB amort, 700K in RB amort, 1M in RB)
2009 $8.45M (5.25M in salary, 1.5M in SB amort, 700K in RB amort, 1M in RB)
2010 $8M (7M in salary and 1M in RB)
In 2008, Shaun Rogers would have been included in the Lions cap calculation for 7.45M, when he was traded, we would have saved his salary (4.25M) and his roster bonus (1.M), but we would also have to accelerate the remaining unamortized portion of his bonuses (1.5M and 700K) that were allocated to 2009. So the cap effect of trading Rogers was $3.05M cap savings). His cap figure on our books for 2008 would be 4.4M (2.2M in 2008 amortization and 2.2M in accelerated 2009 amortization), commonly referred to as dead cap.
Leigh Bodden
Leigh Bodden was acquired in the trade of Rogers. He is due base salaries of 1.7M in 2008 and 1.8M in 2009. Current year Cap cost $1.7M.
Assuming that Adam Schefter was correct when he reported that the Lions were 6.8M under the cap on 02/21/08. And since he's looking at actual reports generated by the league, there's no reason to assume that he isn't correct. From now to the start of the season, teams only must count the top 51 player cap costs toward their cap figure. So, by my estimation, we are about 8.5M under the cap.
Askthecommish.com has a nice FAQ section that explains a lot of the rules of the salary cap and how it relates to player contracts. http://www.askthecommish.com/salarycap/faq.asp
Saturday, March 1, 2008
2008 Salary cap and Adjustments
12:35pm EST
Frank Reuban of si.com wrote an article a few hours before I posted my last blog explaining the reconciliation process. He confirms that the Lions had a rather large negative adjustment to their cap when the LTBE bonuses were reconciled to the NLTBE bonuses, ($5,348,065). He also posted that the actual salary cap is a little higher than the 116M that has been estimated and is actually $116,729,000, so the Lions have $111,380,935 to spend for the 2008 league year.
http://sportsillustrated.cnn.com/2008/writers/reuben_frank/03/01/cap.figures/1.html
Frank Reuban of si.com wrote an article a few hours before I posted my last blog explaining the reconciliation process. He confirms that the Lions had a rather large negative adjustment to their cap when the LTBE bonuses were reconciled to the NLTBE bonuses, ($5,348,065). He also posted that the actual salary cap is a little higher than the 116M that has been estimated and is actually $116,729,000, so the Lions have $111,380,935 to spend for the 2008 league year.
http://sportsillustrated.cnn.com/2008/writers/reuben_frank/03/01/cap.figures/1.html
How much money do the Lions have to spend?
5:15am EST
On February 19th, Profootballtalk reported that the Lions had cap charges of $98.1M, which would put the Lions at $17.9M under the projected cap of $116M. Two days later on February 21st, Adam Schefter of NFL.com reported that the Lions were only $6.8M under the cap. The Lions made no transactions on or around those days and the difference is a fairly significant $11.1M, so who's right and who's full of crap? The truth is, they are probably both right.
In order to understand why they might both be right, you need to understand the difference in how bonuses are calculated. Most player contracts, especially rookies, include incentive bonuses that are triggered when a player meets certain thresholds. They can be based on pretty much any statistic and include, but not limited to, playing time, passing yards, receptions, tackles, sacks, interception, offensive production, wins etc. These incentives can be based on either a single season or multiple seasons. The CBA classifies incentive bonuses into two types, likely to be earned bonuses (LTBE) and Non-likely to be earned bonuses (NLTBE).
LTBE Bonuses are bonuses that are, just like it says, likely to be earned. In the simplest terms, if a player reaches the threshold to trigger the incentive in the prior season, than it is deemed to be LTBE in the current season. Conversely, if he did not reach the threshold to trigger the incentive in the prior season, than it is deemed to be NLTBE in the current season. For rookies (i.e. Calvin Johnson), there are various charts within the CBA that specifies if and how much of an incentive bonus is to be deemed LTBE
Jon Kitna has thrown for more than 4,000 yards in each of the last two seasons. There could have been playing time or passing yards incentives that he triggered that resulted in bonus payments of a lot of money. Passing for 4,000 yards in a season is generally considered to be quite an accomplishment.
Calvin Johnson may not have had as good of a year as we had hoped for, but he didn't have a bad year from a rookie perspective. He could have triggered some incentives.
Ernie Sims has played in every game and has had a lot of tackles over the last couple of years. He could have triggered some incentives that were originally considered NLTBE.
Paris Lenon has also had a lot of tackles over the past couple of years, he could have triggered some bonuses.
A players contract and how it relates to the salary cap is very complex. LTBE and NLTBE incentives can greatly change a teams salary cap status and it can be a double edge sword. i.e. If a player reached an 2007 incentive threshold to trigger a previously classified NLTBE bonus, it will be reconciled at the end of the year and reduce the 2008 salary cap and if that same incentive is in the players contract for 2008, it will be considered a LTBE incentive for the current year and reduce the 2008 salary cap even more.
More than likely, both profootballtalk.com and Adam Schefter were correct with their reports of the Lions cap status, it's just that Adam Schefter's figure included the reconciliation of LTBE bonuses and NLTBE bonuses.
On February 19th, Profootballtalk reported that the Lions had cap charges of $98.1M, which would put the Lions at $17.9M under the projected cap of $116M. Two days later on February 21st, Adam Schefter of NFL.com reported that the Lions were only $6.8M under the cap. The Lions made no transactions on or around those days and the difference is a fairly significant $11.1M, so who's right and who's full of crap? The truth is, they are probably both right.
In order to understand why they might both be right, you need to understand the difference in how bonuses are calculated. Most player contracts, especially rookies, include incentive bonuses that are triggered when a player meets certain thresholds. They can be based on pretty much any statistic and include, but not limited to, playing time, passing yards, receptions, tackles, sacks, interception, offensive production, wins etc. These incentives can be based on either a single season or multiple seasons. The CBA classifies incentive bonuses into two types, likely to be earned bonuses (LTBE) and Non-likely to be earned bonuses (NLTBE).
LTBE Bonuses are bonuses that are, just like it says, likely to be earned. In the simplest terms, if a player reaches the threshold to trigger the incentive in the prior season, than it is deemed to be LTBE in the current season. Conversely, if he did not reach the threshold to trigger the incentive in the prior season, than it is deemed to be NLTBE in the current season. For rookies (i.e. Calvin Johnson), there are various charts within the CBA that specifies if and how much of an incentive bonus is to be deemed LTBE
Jon Kitna has thrown for more than 4,000 yards in each of the last two seasons. There could have been playing time or passing yards incentives that he triggered that resulted in bonus payments of a lot of money. Passing for 4,000 yards in a season is generally considered to be quite an accomplishment.
Calvin Johnson may not have had as good of a year as we had hoped for, but he didn't have a bad year from a rookie perspective. He could have triggered some incentives.
Ernie Sims has played in every game and has had a lot of tackles over the last couple of years. He could have triggered some incentives that were originally considered NLTBE.
Paris Lenon has also had a lot of tackles over the past couple of years, he could have triggered some bonuses.
A players contract and how it relates to the salary cap is very complex. LTBE and NLTBE incentives can greatly change a teams salary cap status and it can be a double edge sword. i.e. If a player reached an 2007 incentive threshold to trigger a previously classified NLTBE bonus, it will be reconciled at the end of the year and reduce the 2008 salary cap and if that same incentive is in the players contract for 2008, it will be considered a LTBE incentive for the current year and reduce the 2008 salary cap even more.
More than likely, both profootballtalk.com and Adam Schefter were correct with their reports of the Lions cap status, it's just that Adam Schefter's figure included the reconciliation of LTBE bonuses and NLTBE bonuses.
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