Post by GordonG on Jan 12, 2020 15:15:15 GMT -5
Bottom line the amount of money available for free agency is closer to 30mm than the 61.8mm shown on overthecap.com. Below is an explanation provided by Patricia Traina.
According to Over the Cap, who is projecting a $200 million salary cap for 2020, the Giants, before any postseason accounting is completed, are projected to have $61,887,216 in cap space, a number that doesn't appear to include any postseason accounting such as incentives and rebates.
Regardless, the projected available space will not be a true $61.887 million worth of space for a few reasons.
As Gettleman noted in his press conference, he’ll need to hold about $20 million in reserve. That’s not just for potential renegotiations, though. That’s also to cover all incentives, including those unlikely to be earned under normal circumstances. This, again, is due to the end date on the current CBA changing the accounting rules for the final league year.
(with 2020 being the final year of a 10 year CBA, there is no next year from a CAP accounting point of view. Therefore the June 1st designation will not be in effect unless a new CBA is agreed upon. Consequentially, dead money from any cuts will be accelerated into 2020 rather that divided between 2020 and 2021)
For example, if a player has a bonus in his contract for winning the Super Bowl, that bonus would need to be accounted for in the 2020 cap rather than be deferred to 2021 unless new CBA is reached ensuring the continuation of the LTBE/NLTBE (likely to be earned/not likely to be earned) payout schedule.
Gettleman will also need an estimated $13.09 million for the 2020 draft class, and that's an estimate that as of right now doesn't include the projected comp picks because we'll need to see where they end up being slotted assuming they're actually awarded.
So between these two numbers--the Giants’ projected cap space to use on free agents is closer to about $30 million.
www.si.com/nfl/giants/news/how-the-absence-of-the-june-1-designation-might-affect-the-giants-upcoming-salary-cap-decisions
According to Over the Cap, who is projecting a $200 million salary cap for 2020, the Giants, before any postseason accounting is completed, are projected to have $61,887,216 in cap space, a number that doesn't appear to include any postseason accounting such as incentives and rebates.
Regardless, the projected available space will not be a true $61.887 million worth of space for a few reasons.
As Gettleman noted in his press conference, he’ll need to hold about $20 million in reserve. That’s not just for potential renegotiations, though. That’s also to cover all incentives, including those unlikely to be earned under normal circumstances. This, again, is due to the end date on the current CBA changing the accounting rules for the final league year.
(with 2020 being the final year of a 10 year CBA, there is no next year from a CAP accounting point of view. Therefore the June 1st designation will not be in effect unless a new CBA is agreed upon. Consequentially, dead money from any cuts will be accelerated into 2020 rather that divided between 2020 and 2021)
For example, if a player has a bonus in his contract for winning the Super Bowl, that bonus would need to be accounted for in the 2020 cap rather than be deferred to 2021 unless new CBA is reached ensuring the continuation of the LTBE/NLTBE (likely to be earned/not likely to be earned) payout schedule.
Gettleman will also need an estimated $13.09 million for the 2020 draft class, and that's an estimate that as of right now doesn't include the projected comp picks because we'll need to see where they end up being slotted assuming they're actually awarded.
So between these two numbers--the Giants’ projected cap space to use on free agents is closer to about $30 million.
www.si.com/nfl/giants/news/how-the-absence-of-the-june-1-designation-might-affect-the-giants-upcoming-salary-cap-decisions