Monday Money Matters

Today’s date, June 1, used to truly mean something in the NFL, a snapshot date for roster management and Cap planning from year to year. Specifically, anything happening on the transaction front after this date would be treated, for Cap purposes, as if it happened the following year -- kind a of a Salary Cap time-warp date in the NFL.

To explain, many NFL player contracts have guarantees in the form of signing bonuses that, for Cap purposes, are prorated throughout the life of the contract. Thus, a five-year deal with a $10 million bonus is treated as $10M for cash purposes in the year negotiated, but only as $2M for Cap purposes in the year negotiated. That’s all well and good unless and until the team decides – for whatever reason -- it has had enough of that player on its team.

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