Here is an article I got from profootballtalk.com explaining the cap ramifications we will suffer by cutting Peerless, if their information is correct it's not nearly as bad as I thought...
PRICE CUT RESULTS IN SMALL NET CAP HIT
Although most media outlets are reporting that the Falcons' decision will result in a cap hit of $5.7 million in 2006, the net consequence of dumping Price will be much, much less than that.
Price's $10 million advance compensation a/k/a signing bonus was to be spread over seven years, with $1.42857 million applied to each season.
Since Price was cut after June 1, only $1.42857 million will apply against this year's cap, with the remaining $5.71428 million counting against the team's cap in 2006.
For 2005, the Falcons actually will realize a net cap savings of more than $570,000, since they have avoided Price's salary of $2 million.
In 2006, the net hit will be only $714,280, since the Falcons have avoided a salary of $4.4 million, a roster bonus of $500,000, and a workout bonus of $100,000.
So the net combined cap hit over the 2005 and 2006 seasons for the decision to release price will be less than $150,000.