PDA

View Full Version : cap hits on fa pickups



rcsodak
01-16-2005, 10:06 PM
Don't know if ya'll knew this or not...(I didn't)....

...but of a FA's salary, only $450k hits against the cap. Meaning if their salary is $1,500,000 a year, the team doesn't take the whole hit. The rest goes to a League benefit pool.....
But the signing bonus, though, is different...as it gets spread out over the term of the contract.

PRBronco
01-16-2005, 10:23 PM
I totally didn't know that, let's spend us some money!

PRBronco
01-16-2005, 11:38 PM
In that case i would like to retract my enthusiastic but not thoroughly thought out statement.

rcsodak
01-17-2005, 11:34 PM
4. Minimum Salary Benefits
Operation of Benefit

We are implementing a new system to make it less costly to retain older veterans at the minimum salary. Under this new system, the Salary Cap count for a player with four or more Credited Seasons who signs a qualifying contract (collectively, "qualifying players") will be the same as the count for a player with 3 Credited Seasons.

The difference between the Salary Cap count for a qualifying contract and the stated minimum for the qualifying player's years of service will be counted as a Player Benefit. For example, in the 2002 League Year, a qualifying player with 5 Credited Seasons will receive a Minimum Salary of $525,000; however, only $450,000 will count against his club's Team Salary. The difference of $75,000 will be counted as a Player Benefit and be paid out of the League-wide benefit pool. Similarly, a qualifying player with 12 Credited Seasons will receive a Minimum Salary of $750,000; however, only $450,000 will count against his club's Team Salary. The difference of $300,000 will be counted as a Player Benefit and be paid out of the League-wide benefit pool. As a result, the 10-year veteran making $750,000 will cost the club the same as the three-year veteran making $450,000.

For players with 4 or more Credited Seasons, split contracts, if they otherwise qualify, may be qualifying contracts. For such contracts, the reduced Cap count will equal either the difference between the player's minimum salary and the full minimum salary for players with 3 Credited Seasons (if the player is on an Active/Inactive List) or the difference between the player's split minimum salary and the split minimum for players with 3 Credited Seasons (if the player is not on an Active/Inactive List).