sableholic Posted February 17, 2006 Share Posted February 17, 2006 http://sports.espn.go.com/nfl/columns/story?columnist=clayton_john&id=2332991 "With no extension, what problems would exist for the '06 season? Because 2006 could be a transition year to no cap in 2007, rules change slightly and they take a lot of money out of the free agency pool. Teams will lose between $2.5 million and $5 million of cap room because of the transition. Because there is no cap in 2007, players who are released from multi-year contracts will have the cap hits on the 2006 cap. With no salary cap in 2007, there will be no June 1 adjustment date to release players with high cap numbers and delay the cap hits. With no cap in 2007, all incentives will count immediately. Normally, incentives have to be earned during the season and are posted on the next year's cap. Teams have to leave room for the extra charges and that will take anywhere between $100 million and $150 million of cap room out of the free agent pool. With less room, fewer free agents will get big dollars, and fewer free agents will be signed. Another problem is the 30-percent rule for base salaries. Any contract that extends into an uncapped year limits the increase of a player's base salary to 30 percent a year. That kills the teams over the cap because they can't negotiate simple replacement deals in which they replace base salary with signing bonuses. The base salaries can increase only 30 percent a year so teams would have to negotiate two or three years of reductions. It will be harder for teams to free up money under the cap because of that. Signing draft choices will be more difficult because teams can prorate signing bonuses for only four seasons. Already, agents figure the most a top draft choice can make under that scenario is $15 million, a major reduction from recent years. That leads to long holdouts by draft choices." And the second article on complications http://sports.espn.go.com/nfl/columns/story?columnist=pasquarelli_len&id=2332924 ""It's going to be a very difficult circumstance for people to operate systematically and have the kind of money to be actively involved in free agency," Miami Dolphins coach Nick Saban told the South Florida Sun-Sentinel. "It changes some of the rules relative to the system in how you can calculate a guy's salary." It changes, indeed, a lot of things on both sides. For instance, players now will need six accrued seasons, not four, to qualify for unrestricted free agent status. So a standout young player such as Chicago Bears three-year veteran linebacker Lance Briggs, who is coming off a Pro Bowl season and whose contract expires after the 2006 season, would have to wait two additional seasons before being unrestricted. The league also would, in an uncapped year, quit funding 401(k) plans and most other fringe benefits, meaning that players would be responsible for those things. And there would be difficulties, even for the most innovative teams and creative player agents, in meeting financial expectations on most contracts. The more well-known sticking points: Without an extension to the CBA, teams will be able to amortize signing bonuses over just four seasons, instead of the maximum seven years. Because of the 30-percent rule, which essentially stipulates that a player's basic compensation (his base salary plus the prorated share of his signing bonus for 2006) cannot be increased by more than 30 percent, teams can't make up the difference in smaller signing bonus with fatter base salaries. But perhaps the biggest problem is that so-called "not likely to be earned incentives" (NLTBE) will count immediately against the cap. In normal circumstances, NLTBE incentives count on the following year's spending limit. So NLTBE's earned in 2005, for instance, count against a team's 2006 cap. But with an uncapped year looming in 2007, such incentives and bonuses that are triggered in 2006 immediately would apply." Both articles are good reads and I recommend all read them. Oh and if you are just going to say "Oh it will never harm us" "they say this every year", etc. just please read the article. This year is different from the rest of the years. Link to comment Share on other sites More sharing options...
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