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  1. #1

    How can a tight cap situation affect the Flacco Deal?



    I know Joe is supposed have a $8 mil cap hit this year. If he signs an extention that goes into effect next year so how would it make his cap number rise??? if anything it would be lower if it goes into effect this year for some reason. I dont get this.....




  2. #2

    Re: How can a tight cap situation affect the Flacco Deal?

    The team has a pretty wide latitude in terms of how a potential deal would affect his cap hit. If they wanted to, and Flacco would agree to it (which he probably would,) the team could set his salary at the veteran minimum this year, such that the only real cap hit is from the proration of any bonus money. The team doesn't need to structure it as a true extension, they can also rip up the franchise tag contract and replace it as long as Flacco agrees (I'm sure he would.)

    If they save money in 2012, they'll push the cap hit down the road a bit. It works similarly to how Pittsburgh saved money this year, restructuring contracts to convert base salaries into bonuses which are prorated over multiple years. You make the cap problem a bit worse later on, but improve it in the short term.




  3. #3

    Re: How can a tight cap situation affect the Flacco Deal?

    I wouldn't pay too much attention to what the talking head idiots say on NFL.com or ESPN. Flacco will have his deal done before the beginning of the season - and it will be pretty much as "bmorecareful" indicated above - a low 2012 base salary wih a big signing bonus prorated over the 8 or 10 year life of the contract (very cap friendly for 2012). You have to remember that these are the same guys who don't think Joe is very much of a quarterback (despite his 49 wins in his first four seasons). I have to chuckle when I hear that they're amazed that Joe(whose contract isn't up until 2013) is showing up to OTAs and that he's not likely going to hold out.




  4. #4

    Re: How can a tight cap situation affect the Flacco Deal?

    Quote Originally Posted by Benny8444 View Post
    I know Joe is supposed have a $8 mil cap hit this year. If he signs an extention that goes into effect next year so how would it make his cap number rise??? if anything it would be lower if it goes into effect this year for some reason. I dont get this.....
    It all depends on the structure and just want Flacco is looking for.

    Usually, as long as the guaranteed money, 1st year payout and 3-year payout are what the player (and agent) are looking for, they could care less what the structure is, but it all depends on what they see - and the team sees - as Flacco's value.

    The way the Ravens have historically structured deals (signing bonus, option bonus, low early base salaries, with backload later base salaries), then his Cap number should go down slightly (or remain close to the same). If Flacco wants $100M and $50M guaranteed, and/or wants more of a flat structure, then it's going to be a problem, no matter what the structure is.
    “Talk's cheap - let’s go play.” - #19, Johnny Unitas

    Follow me on Twitter @ravenssalarycap




  5. #5
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    Re: How can a tight cap situation affect the Flacco Deal?

    i wouldnt do the restructure, well i mean lower the cap hit this year and spread it out unless we plan on signing a few more cut vets late on. Id rather take as much of his $8mil odd hit this year as possible rather than throwing an extra 1 or 2 mil onto future years. Back at the start of FA i was all for it, but now when most of the shopping is done, try and not eat up future cap space. If we desperatly need more room this year the main aim should be getting RR of the Tag, or work something out with Ed if he signed an agent.

    But really what would the point be in freeing up 5/6 mil in cap space at this stage just for it to be added onto future years?




  6. #6

    Re: How can a tight cap situation affect the Flacco Deal?

    Quote Originally Posted by rharris1986 View Post
    ........it will be pretty much as "bmorecareful" indicated above - a low 2012 base salary wih a big signing bonus prorated over the 8 or 10 year life of the contract (very cap friendly for 2012).......
    FWIW, the maximum proration under the terms of the CBA is 5 years. In the past, some bonuses received 6 year prorations, but now it's a maximum of 5.
    “Talk's cheap - let’s go play.” - #19, Johnny Unitas

    Follow me on Twitter @ravenssalarycap




  7. #7
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    Re: How can a tight cap situation affect the Flacco Deal?

    Quote Originally Posted by B-more Ravor View Post
    It all depends on the structure and just want Flacco is looking for.

    Usually, as long as the guaranteed money, 1st year payout and 3-year payout are what the player (and agent) are looking for, they could care less what the structure is, but it all depends on what they see - and the team sees - as Flacco's value.

    The way the Ravens have historically structured deals (signing bonus, option bonus, low early base salaries, with backload later base salaries), then his Cap number should go down slightly (or remain close to the same). If Flacco wants $100M and $50M guaranteed, and/or wants more of a flat structure, then it's going to be a problem, no matter what the structure is.
    Do we know for sure that he's asking for 100 million?




  8. #8

    Re: How can a tight cap situation affect the Flacco Deal?

    We dont but i believe that he was just throwing that as an example as to how it would not work this year and raise his cap number.

    Bottom line is, he is showing up to workouts still being in contract dispute so things have to be going well or he would skip these as they are pointless for vets. I belive something could be announced soon after the draft as right now and for the past 2 weeks oz and co have been working on the draft not joe and RRs contracts. once the draft is over I expect to hear more and see a possible deal for flacco. Rice's wont come until july as there is no sense to do it now as there is no reason for either side to budge as they ahve till july 16. same with suggs, wait till july and the talks will heat up.




  9. #9
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    Re: How can a tight cap situation affect the Flacco Deal?

    Quote Originally Posted by bmorecareful View Post
    The team has a pretty wide latitude in terms of how a potential deal would affect his cap hit. If they wanted to, and Flacco would agree to it (which he probably would,) the team could set his salary at the veteran minimum this year, such that the only real cap hit is from the proration of any bonus money. The team doesn't need to structure it as a true extension, they can also rip up the franchise tag contract and replace it as long as Flacco agrees (I'm sure he would.)

    If they save money in 2012, they'll push the cap hit down the road a bit. It works similarly to how Pittsburgh saved money this year, restructuring contracts to convert base salaries into bonuses which are prorated over multiple years. You make the cap problem a bit worse later on, but improve it in the short term.
    That's what teams usually do. I'm sure that's the thought.
    He Who Dares.....Wins




  10. #10
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    Re: How can a tight cap situation affect the Flacco Deal?

    Quote Originally Posted by Benny8444 View Post
    We dont but i believe that he was just throwing that as an example as to how it would not work this year and raise his cap number.

    Bottom line is, he is showing up to workouts still being in contract dispute so things have to be going well or he would skip these as they are pointless for vets. I belive something could be announced soon after the draft as right now and for the past 2 weeks oz and co have been working on the draft not joe and RRs contracts. once the draft is over I expect to hear more and see a possible deal for flacco. Rice's wont come until july as there is no sense to do it now as there is no reason for either side to budge as they ahve till july 16. same with suggs, wait till july and the talks will heat up.
    He's showing up for OTA's because he's still under contract.




  11. #11
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    Re: How can a tight cap situation affect the Flacco Deal?

    Quote Originally Posted by Benny8444 View Post
    We dont but i believe that he was just throwing that as an example as to how it would not work this year and raise his cap number.

    Bottom line is, he is showing up to workouts still being in contract dispute so things have to be going well or he would skip these as they are pointless for vets. I belive something could be announced soon after the draft as right now and for the past 2 weeks oz and co have been working on the draft not joe and RRs contracts. once the draft is over I expect to hear more and see a possible deal for flacco. Rice's wont come until july as there is no sense to do it now as there is no reason for either side to budge as they ahve till july 16. same with suggs, wait till july and the talks will heat up.
    Flacco isn't in a contract dispute. He still has a year to go on his current deal.

    Rice is a different story since he doesn't have a contract.
    He Who Dares.....Wins




  12. #12

    Re: How can a tight cap situation affect the Flacco Deal?

    Quote Originally Posted by Benny8444 View Post
    I know Joe is supposed have a $8 mil cap hit this year. If he signs an extention that goes into effect next year so how would it make his cap number rise??? if anything it would be lower if it goes into effect this year for some reason. I dont get this.....
    Every extension does not lower the cap number...




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