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A note on salary cap savings

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We’ve seen that there is a lot of confusion out there about how player cuts impact salary cap situations this year.

Here’s the key thing to remember: If a player is cut or traded now, their entire salary cap hit comes off the books for 2011. The old “June 1” rule applies.

So when Cowboys receiver Roy Williams was cut, the pro-rated bonus money got pushed to next year’s cap.  (They’ll have over $20 million pushed to next year.

But the Cowboys get big-time savings right now with the moves.  Which in turn helps them go after Nnamdi Asomugha.  That is all.

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5 Responses to “A note on salary cap savings”
  1. crysisorigins says: Jul 29, 2011 4:47 PM

    That picture somes up Roy Williams tenure with the Cowboys.

  2. ianwhetstone says: Jul 29, 2011 4:49 PM

    That’s a bit of a contradictory explanation; the old June 1 rule did not push the entire cap hit off the books. The signing bonus proration (as well as any already-earned off-season bonuses) remained against the current year’s cap; only the outstanding prorated signing bonus from future years was pushed into the next year.

    I suspect that that’s how the rules operate this year, as well, but there does seem to be inconsistency in how that is being reported around the web.

  3. oscojoe says: Jul 29, 2011 4:57 PM

    Some day professional sports leagues (& our Goverment) will use accounting principles that make sense.

  4. bhooks says: Jul 29, 2011 5:03 PM

    read article 5.1 of the new CBA, and explain to me what is an “unearned bonus”…

    Alot of that 20 million will be off the books next year, thanks to the loophole 5.1.c.

  5. thedudeabideth says: Jul 29, 2011 5:13 PM

    Under the “June 1” rule, the prorated signing bonus for 2011 stays in 2011. The prorated signing bonus for all remaining years get pushed into 2012.

    For releases before June 1, the entire prorated bonuses would have accelerated into 2011 .

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