Price's cap ramifications

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Steve-O
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Price's cap ramifications

Postby Steve-O » Tue Aug 30, 2005 7:44 pm

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.

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Postby Capologist » Tue Aug 30, 2005 9:17 pm

Highly inaccurate article.

First, the savings in 2005 is $2 million. There is no "netting effect".

Second, the only net is roughly $550k next season but there is still 5.7 million on the books that we can't use no matter how you slice it...

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Postby Steve-O » Wed Aug 31, 2005 5:19 pm

yeah that's why I posted it...I wasn't sure of it's accuracy....appreciate the insite

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Postby MarylandFalcon1 » Wed Aug 31, 2005 5:59 pm

Trust in the Cap, he knows!

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