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Good cap article

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Old 03-10-2006, 01:45 PM   #12
That Guy
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Re: Good cap article

Quote:
Originally Posted by JoeRedskin
Also, based on the description of the negotiations and the sticking points between the high v. low revenue teams, I was worried that the new CBA would penalize high revenue teams who manipulated the cap - ending the "cash equals cap room" equation that Danny boy plays to the fullest. From the brief description of the "cap over cash" reprucussions in the article, however, it looks to me like excess cash spent by one team will negatively effect the cap for all the teams in the following year. If this is true, the cash = cap scenario just got even more interesting.

Danny spends big, but does so using his usual mechanisms (which other teams seem either unable to grasp or are reluctant to utilize). This creates a huge cash over cap situation in year one. In year two the salary cap plunges, BUT - b/c of the bonus and proration mechanisms incorporated by Danny, the year two cap numbers of the prior year's signing is actually LESS than their original year. Thus, the Skins are sitting pretty with the lower salary cap but other teams are forced to cut players b/c, rather than manipulate the cap, they try to have their cap number reflect actual salary.

So - Danny spends big this year, the Giants are forced to cut players next year. Muhahahahahahaaa

I seriously doubt this is actually possible, but its fun to think about. More importantly, with the new CBA, it looks like cap manipulation is going to be even more important as salary bonuses will eventually be limited to a 5 year proration rather than the current 7. Equally important, it looks like the benefit the Skins derive from Danny's ability and willingness to spend "cash over cap" will still exist.
danny's spending over cap divided by 32 = not much change. some teams stay under the cap by 10-20mill, which raises the cap. If that's how it works, everything probably cancels out or changes the cap by less than 1-2% which isn't a big deal.
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