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Saints QB Drew Brees agrees to drop salary to league minimum; Saves Saints $24M


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29 minutes ago, Raves said:

That's what they will be doing.  They are pushing the cap hit to next year when it's probably going to be a higher cap and they won't be affected as much by it.

Thanks.  Someone else explained to me that there are new(ish) rules for retiring players in that the guaranteed money is pushed out over 2 years of the remaining contract( like a June 1st cut).  That is why they signed an extension with voidable years.

 

If the Steelers keep Ben, it will be what they do with the $17M they can play with.

Edited by jebrick
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8 minutes ago, ramssuperbowl99 said:

Why? The salary cap inflates a bunch year over year. Every dollar in future years is less valuable, so you come out with greater total spending power.

I mean.. that's one argument

The other argument is if you are always pushing cap into future years you are always limiting the amount of firepower you have in those future years. I agree that it is a now vs later proposition, but if you don't do that, then you have an extra star player worth of spending power compared to all the teams who are mortgaging their future for current cap relief

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3 minutes ago, Tk3 said:

I mean.. that's one argument

The other argument is if you are always pushing cap into future years you are always limiting the amount of firepower you have in those future years. I agree that it is a now vs later proposition, but if you don't do that, then you have an extra star player worth of spending power compared to all the teams who are mortgaging their future for current cap relief

You can perpetually borrow in that future year. In year n, you push as much as you can to year n+1, in year n+1, you push to year n+2, etc. etc. As long as the NFL keeps making more money, there will be cap inflation and you come out ahead.

Edited by ramssuperbowl99
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11 minutes ago, ramssuperbowl99 said:

You can perpetually borrow in that future year. In year n, you push as much as you can to year n+1, in year n+1, you push to year n+2, etc. etc. As long as the NFL keeps making more money, there will be cap inflation and you come out ahead.

right but there will always be a final year that you move on from a player (trade, cut, retirement) where that comes due

and you can even spread that out to an extent, but eventually that cap number hits, even if spread out. And if its in a year where cap inflates, your inflated cap potential is still smaller than someone else's inflated cap potential

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Just now, ramssuperbowl99 said:

If the salary cap goes down, sure. So the next time there's a pandemic we can worry about it, but until then, this isn't true. Year N can always borrow from Year N+1.

but eventually Ben or Brees retire and the remaining is pushed into a year with no benefit

It doesn't matter if the cap goes up or down

There is a cap hit there, and you have some level of disadvantage versus a team who didn't defer the cap hits

It's not a literal defer for eterenity

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2 minutes ago, Tk3 said:

but eventually Ben or Brees retire and the remaining is pushed into a year with no benefit

It doesn't matter if the cap goes up or down

There is a cap hit there, and you have some level of disadvantage versus a team who didn't defer the cap hits

It's not a literal defer for eterenity

Then you borrow that money back and then some by using the cap space from the year after. I have no simpler way of explaining this than saying that in every single year, you will always be able to borrow more from the next year because the cap goes up.

Edited by ramssuperbowl99
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Just now, ramssuperbowl99 said:

Then you borrow that money back and then some by using the cap space from the year after. I have no simpler way of explaining this than saying that in every single year, you will always be able to borrow more from the next year because the cap goes up.

Assuming Brees retires, is there going to be dead cap. Yes or No?

Whether it hits in 2021 or 2022, it hits. By deferring it continually becomes less and less of a burden on overall cap, but it's still cap that could be used elsewhere in that year.

It's a value proposition of whether that hit is worth it or not for the present value you get. But you can't deny its existence

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Just now, Tk3 said:

Assuming Brees retires, is there going to be dead cap. Yes or No?

Whether it hits in 2021 or 2022, it hits. By deferring it continually becomes less and less of a burden on overall cap, but it's still cap that could be used elsewhere in that year.

It's a value proposition of whether that hit is worth it or not for the present value you get. But you can't deny its existence

If Brees has a dead cap value of $X, and you borrow $X+$YMM from the next year, does it matter? No. Money is fungible. This is like taking a perpetual advance on your salary in a market with inflation. It's just smart.

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58 minutes ago, ramssuperbowl99 said:

Why? The salary cap inflates a bunch year over year. Every dollar in future years is less valuable, so you come out with greater total spending power.

Until the cap stalls or until you just run into cap problems via current day over spending like the eagles did. 

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