New rule for post-June trades

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Pudge
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New rule for post-June trades

Postby Pudge » Thu Jun 08, 2006 10:54 am

From PFT:
NEW POST-JUNE 1 RULE CONFIRMED

On Tuesday, we cited a league source for the proposition that the recent trade of 2003 first-day draft busts between the Saints and Pats would not trigger the acceleration of any bonus amounts that otherwise would have been allocated to future league years. The former rule requiring full acceleration of all unallocated bonus money, per the source, has been revised to permit trades occurring after June 1 to be treated in the same manner as contract terminations occurring after June 1.

NFL spokesman Greg Aiello has confirmed that the rule has changed. "The new rule is in effect," Aiello wrote in a Wednesday morning e-mail. "If the trade occurs after June 1, the assigning club's signing bonus acceleration (if any) is postponed until the first day of the 2007 league year. The club would continue to bear the cap charge for the current year's prorated signing bonus (this is not considered acceleration) plus any amounts that have already been earned under the 2006 contract."

For example, if a player signed in 2005 a four-year deal with a $4 million signing bonus, a trade of that player after June 1, 2006 would result in a $1 million cap charge for 2006 and a $2 million cap charge in 2007. Under the old rule, a trade occurring at any time in 2006 would have resulted in a $3 million cap hit in 2006.

Just how obscure is this new rule? The guys who get paid by the NFL to write about the sport don't even know about it.

In an item posted by Pat Kirwan of NFL.com on June 6 regarding the Pats-Saints trade, Kirwan states that "[t]rades are considered the same as a termination before June 1, so the Patriots must absorb the remaining bonus now."

Should the guys who get paid by the NFL to write about the sport know about this tweak to the rules? That's a call that the folks who sign the checks need to make.


How would this affect a trade of Duckett? I think the Falcons would about double what they would have saved in cap space under the old rule, which about $1 million instead of about $500K being freed up.
"Vincere scis, Hannibal, victoria uti nescis" -- Maharbal, 216 B.C.E.

John Engel
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Postby John Engel » Thu Jun 08, 2006 3:13 pm

if I recall right, Duckett is a FA at the end of the year. So, there shouldn't be any acceleration of funds should he get dealt (they should already be accounted for). Cutting him now would just save the team his salary for 06.
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Pudge
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Postby Pudge » Sat Jun 10, 2006 12:00 pm

You're right, I forgot Duckett is a FA after this year.
"Vincere scis, Hannibal, victoria uti nescis" -- Maharbal, 216 B.C.E.


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