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Franchise Player
Join Date: Feb 2004
Age: 46
Posts: 8,317
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New Deal May Jeopardize Redskins Cap Strategy
Apparently, revenue sharing among the owners and with the players aren't the only issues on the table in the CBA negotiations. According to ESPN.com, a major issue in the CBA negotiations is how the league counts player bonuses over the life of a contract. It's a term that both sides commonly refer to as "cash over cap."
The Redskins employ a cap strategy whereby they sign players to big-contracts with high bonuses and low salaries. This strategy, made possible by the team's high revenue stream, allows the team to annually entice multiple free agents with big bonuses. Moreover, the strategy allows the Redskins to be particularly creative when restructuring players' deals; it pays players big money immediately, but allows the cap hit to be spread out over several seasons. This cap strategy arguably gives the Redskins a competitive advantage over lower-revenue teams that cannot afford to pay such large bonuses. Accordingly, lower-revenue clubs may begin to do battle with the Dan Snyders and Jerry Joneses over more than just revenue sharing proposals. Mort believes that if this issue can be resolved between the owners, an extension to the CBA will be reached. Things get more and more complicated every day. :frusty: http://sports.espn.go.com/nfl/news/story?id=2351271 |
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