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Schneed10 · 06-09-2005, 12:59 PM

Salary cap discussion, how I missed thee.

Dan Snyder and Eric Schaffer do not get NEARLY the credit they deserve in handling the salary cap. It all starts with the 3-year projections they run, projecting what they think the salary cap actually will be each year. The Redskins are the only front office that saw a higher salary cap coming in 2006. They felt comfortable stocking the roster with talented players, with a good deal of their bonuses and salaries hitting in 2006. Dan Snyder recognized that the leaguewide revenue streams would be increasing in 2006 with the new TV deal, causing the cap to go up, meaning he could grab more players. When Joe Gibbs says they have a long term plan and they're building towards the future, he means it. And it's NOT because he doesn't know the ins and the outs of the salary cap, it's because he has tremendous financial analysts in the front office in the form of Snyder and Schaffer, projecting what the cap will be. To a sportswriter like John Clayton or Len Pasta, with their untrained financial eyes they won't be able to see what Dan Snyder sees, and consequently they just assume that the Skins are headed for cap hell. And then of course, when the Redskins' cap situation works out fine next year, they'll write that Dan Snyder got lucky. NO WAY. Back in 2004, Snyder knew the cap was going to go up in 2006, and he planned for it.

On the specifics of our cap situation, we're in fine shape in my opinion. The salary cap this year is at 85 million. It is safe to expect at least a 10% increase in the cap next year, likely more, but if it's 10%, the cap next year will be 93.5 million.

According to Crazy Canuck's cap sheets, we have $112 million committed to players in 2006. Seems bad right? John Clayton would say so too. What he doesn't know is that $26 million of that $112 is tied up in Roster Bonuses (the biggest of which are Arrington, Springs, Portis, Griffin, Moss, Washington, Patten are the biggest ones). Roster Bonuses hit your cap all in that season, just like a base salary would. So if we pay LaVar a $4.5 million roster bonus next year, that counts $4.5 against our cap next year. But Dan Snyder knows this and has EVERY intention of renegotiating the contract to give Lavar his $4.5 million in the form of a signing bonus, which gets spread across the remaining life of his contract. And what does Lavar care? He gets his $4.5 million no matter what, he doesn't care if it's called roster bonus or signing bonus.

This is genius planning. The renegotiation of that $26 million in roster bonuses can take the cap hit from $26 million down to $8 million very easily, which would bring our cap figure of $112 down to $94 million, right around the projected cap. Of course, this spreads the remainder of those bonuses throughout the life of the contract, which makes us think of the phrase "mortgaging the future". Except that Snyder knows that league revenues are projected to keep increasing, and as long as that happens the salary cap will continue to go up each year, leaving enough cap room to keep his roster together, never having to tear it apart.

This still means we won't have room to go out and sign a bunch of guys. But Snyder's goal is no longer to buy a fantasy football team like in 2000. He's thinking continuity, he's thinking how can I keep my team together, because that's how the Eagles do it. They keep their team together. Snyder has given Gibbs the ability to assemble the talent he wants in '04 and '05, and keep them together for the long haul. If this continuity leads to winning seasons, in three years I guarantee you that Clayton and Pasta will be praising the Redskins for their salary cap management. But they're too hard-headed to realize that the Skins have a good thing going right now. Snyder knows what he's doing, he deserves major praise for realizing how to take advantage of a rising salary cap before all the other teams figured it out. There's a method to his madness, and team continuity will be the result.

06-09-2005, 12:59 PM	#29
Schneed10 A Dude Join Date: Feb 2005 Location: Newtown Square, PA Age: 46 Posts: 12,458	Re: ESPN's redskins offseason overview Salary cap discussion, how I missed thee. Dan Snyder and Eric Schaffer do not get NEARLY the credit they deserve in handling the salary cap. It all starts with the 3-year projections they run, projecting what they think the salary cap actually will be each year. The Redskins are the only front office that saw a higher salary cap coming in 2006. They felt comfortable stocking the roster with talented players, with a good deal of their bonuses and salaries hitting in 2006. Dan Snyder recognized that the leaguewide revenue streams would be increasing in 2006 with the new TV deal, causing the cap to go up, meaning he could grab more players. When Joe Gibbs says they have a long term plan and they're building towards the future, he means it. And it's NOT because he doesn't know the ins and the outs of the salary cap, it's because he has tremendous financial analysts in the front office in the form of Snyder and Schaffer, projecting what the cap will be. To a sportswriter like John Clayton or Len Pasta, with their untrained financial eyes they won't be able to see what Dan Snyder sees, and consequently they just assume that the Skins are headed for cap hell. And then of course, when the Redskins' cap situation works out fine next year, they'll write that Dan Snyder got lucky. NO WAY. Back in 2004, Snyder knew the cap was going to go up in 2006, and he planned for it. On the specifics of our cap situation, we're in fine shape in my opinion. The salary cap this year is at 85 million. It is safe to expect at least a 10% increase in the cap next year, likely more, but if it's 10%, the cap next year will be 93.5 million. According to Crazy Canuck's cap sheets, we have $112 million committed to players in 2006. Seems bad right? John Clayton would say so too. What he doesn't know is that $26 million of that $112 is tied up in Roster Bonuses (the biggest of which are Arrington, Springs, Portis, Griffin, Moss, Washington, Patten are the biggest ones). Roster Bonuses hit your cap all in that season, just like a base salary would. So if we pay LaVar a $4.5 million roster bonus next year, that counts $4.5 against our cap next year. But Dan Snyder knows this and has EVERY intention of renegotiating the contract to give Lavar his $4.5 million in the form of a signing bonus, which gets spread across the remaining life of his contract. And what does Lavar care? He gets his $4.5 million no matter what, he doesn't care if it's called roster bonus or signing bonus. This is genius planning. The renegotiation of that $26 million in roster bonuses can take the cap hit from $26 million down to $8 million very easily, which would bring our cap figure of $112 down to $94 million, right around the projected cap. Of course, this spreads the remainder of those bonuses throughout the life of the contract, which makes us think of the phrase "mortgaging the future". Except that Snyder knows that league revenues are projected to keep increasing, and as long as that happens the salary cap will continue to go up each year, leaving enough cap room to keep his roster together, never having to tear it apart. This still means we won't have room to go out and sign a bunch of guys. But Snyder's goal is no longer to buy a fantasy football team like in 2000. He's thinking continuity, he's thinking how can I keep my team together, because that's how the Eagles do it. They keep their team together. Snyder has given Gibbs the ability to assemble the talent he wants in '04 and '05, and keep them together for the long haul. If this continuity leads to winning seasons, in three years I guarantee you that Clayton and Pasta will be praising the Redskins for their salary cap management. But they're too hard-headed to realize that the Skins have a good thing going right now. Snyder knows what he's doing, he deserves major praise for realizing how to take advantage of a rising salary cap before all the other teams figured it out. There's a method to his madness, and team continuity will be the result.