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cash to cap or me? And also, do most teams use this or just a few like us? and is there an advantage to using it?

means if we give out a 10 million signing bonus on a contract of 5 years we will act like the entire amount comes off this years cap. However, teams are allowed to spread the cap hit over the entire 5 years so it ends up only being a $2 million cap hit.

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means if we give out a 10 million signing bonus on a contract of 5 years we will act like the entire amount comes off this years cap. However, teams are allowed to spread the cap hit over the entire 5 years so it ends up only being a $2 million cap hit.

 

that sounds a bit retarded to me. why do we use this?

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that sounds a bit retarded to me. why do we use this?

because we don't have the money to spend up to the cap every year. Each teams cap is different as well, as it can be inflated by sticking bonuses in players contracts that they will never earn. If you put a $2 million bonus in Mcgee's contract (which he never earns) your cap just went up.

 

 

 

 

If we spent to the cap (in cap dollars) we would spend $150-160 million every year.

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cash to cap or me? And also, do most teams use this or just a few like us? and is there an advantage to using it?

I'll give it a go.....

 

Simply......C2C means that a team will only fork over in physical dollars an amount up to the cap level for any given year.

 

If a team signs a big contract which garners a $28mil signing bonus.....and the contract was over 7 years......their amortized cap figure for the SB would be $4mil/year. They have however spent $28mil in cash.......thus being deducted off of the C2C figure for the year.

 

As far as I'm aware, a majority of teams use a C2C system.

 

There can be some very big advantages in the C2C system.

Firstly.....you are highly unlikely to get into 'cap hell' using the C2C. If big name players under-perform or are injured and need to be cut there will not be that massive 'cap hit' that often comes in that situation.

 

Also....it can free much more money under the cap in future years.....which can be used to pay more talent.

Using the example above: If the team were to pay 2 roster bonuses(not amortized) of $14mil over the first 2 years....then for years 3-7 of the contract the team would have an additional $4mil under the cap compared to if they had simply used a $28mil SB. This obviously can be used to upgrade the roster further.

 

Another thing that can be done(and I'm amazed is not done more often).....which the Vikings did with Winfield a few years back.....is to use up your excess cap(and C2C) dollars on the first year of a players contract. For instance.....if a player is going to garner a $5mil a year deal over 6 years......and you pay $15mil to the player in the first year.....his salary would average only $3mil/year for the next 5.....thus freeing up even more money.

 

Teams that don't use C2C basically use tomorrows money today.

Teams that use C2C can use todays money to pay for tomorrow.

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I'll give it a go.....

 

Simply......C2C means that a team will only fork over in physical dollars an amount up to the cap level for any given year.

 

If a team signs a big contract which garners a $28mil signing bonus.....and the contract was over 7 years......their amortized cap figure for the SB would be $4mil/year. They have however spent $28mil in cash.......thus being deducted off of the C2C figure for the year.

 

As far as I'm aware, a majority of teams use a C2C system.

 

There can be some very big advantages in the C2C system.

Firstly.....you are highly unlikely to get into 'cap hell' using the C2C. If big name players under-perform or are injured and need to be cut there will not be that massive 'cap hit' that often comes in that situation.

 

Also....it can free much more money under the cap in future years.....which can be used to pay more talent.

Using the example above: If the team were to pay 2 roster bonuses(not amortized) of $14mil over the first 2 years....then for years 3-7 of the contract the team would have an additional $4mil under the cap compared to if they had simply used a $28mil SB. This obviously can be used to upgrade the roster further.

 

Another thing that can be done(and I'm amazed is not done more often).....which the Vikings did with Winfield a few years back.....is to use up your excess cap(and C2C) dollars on the first year of a players contract. For instance.....if a player is going to garner a $5mil a year deal over 6 years......and you pay $15mil to the player in the first year.....his salary would average only $3mil/year for the next 5.....thus freeing up even more money.

 

Teams that don't use C2C basically use tomorrows money today.

Teams that use C2C can use todays money to pay for tomorrow.

Nice job explaining! Well done Dibs!

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I'll give it a go.....

 

Simply......C2C means that a team will only fork over in physical dollars an amount up to the cap level for any given year.

 

If a team signs a big contract which garners a $28mil signing bonus.....and the contract was over 7 years......their amortized cap figure for the SB would be $4mil/year. They have however spent $28mil in cash.......thus being deducted off of the C2C figure for the year.

 

As far as I'm aware, a majority of teams use a C2C system.

 

There can be some very big advantages in the C2C system.

Firstly.....you are highly unlikely to get into 'cap hell' using the C2C. If big name players under-perform or are injured and need to be cut there will not be that massive 'cap hit' that often comes in that situation.

 

Also....it can free much more money under the cap in future years.....which can be used to pay more talent.

Using the example above: If the team were to pay 2 roster bonuses(not amortized) of $14mil over the first 2 years....then for years 3-7 of the contract the team would have an additional $4mil under the cap compared to if they had simply used a $28mil SB. This obviously can be used to upgrade the roster further.

 

Another thing that can be done(and I'm amazed is not done more often).....which the Vikings did with Winfield a few years back.....is to use up your excess cap(and C2C) dollars on the first year of a players contract. For instance.....if a player is going to garner a $5mil a year deal over 6 years......and you pay $15mil to the player in the first year.....his salary would average only $3mil/year for the next 5.....thus freeing up even more money.

 

Teams that don't use C2C basically use tomorrows money today.

Teams that use C2C can use todays money to pay for tomorrow.

 

Thanks! That helped a lot! Also, I agree with you 100% about the Vikings situation. That stratedy should be used often

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