Creativity helps ‘Skins manage cap charge with Morgan deal

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Redskins officials reportedly are “furious” (as they should be) about the removal of $36 million in salary cap space.  And so it can be said that they’ve chosen both to get mad — and to get even.

Apart from any formal effort to challenge their punishment-without-a-crime, the Redskins are looking for ways to craft new contracts that will help them manage the cap charges in 2012.

With receiver Josh Morgan, for example, a $5.5 million signing bonus on a two-year deal will count only $1.1 million toward the cap in 2012, even though it should have chewed up $2.75 million.

The Redskins pulled it off via a five-year contract that will void to two.  It means that, instead of a $2.75 million cap charge in 2012 and 2013, the bonus will count as only $1.1 million in 2012 and, presumably, $1.1 million in 2013, and then $4.4 million in 2014, once the cap penalties are gone and the salary cap shoots up under the new TV deals.  (Unless, of course, the league finds two years from now that the Redskins were trying to obtain an unfair competitive balance via a contract the league office approved.)

Morgan also will be paid a fully-guaranteed base salary of $1.8 million in 2012, along with a $200,000 workout bonus.  In 2013, he’s due to receive a $3.8 million base salary and a $200,000 workout bonus.

Morgan also is eligible to pocket $250,000 in each year for a Pro Bowl berth.

It adds up to $7.3 million fully guaranteed, $7.5 million that is as a practical matter guaranteed (if he shows up for the workout program), and $11.5 million in two years with another $500,000 available if he makes it to the Pro Bowl in both years.

At an average of $766,000 per reception from 2011, that’s not a bad deal.

14 responses to “Creativity helps ‘Skins manage cap charge with Morgan deal

  1. dude! The Skins never learn. This buy-now-pay-later type of contracts is what got them into this situation in the first place.

    Every year they go shopping with a credit card in March. Every year it fails to win football games in September. Yet they do it again… every year.


  2. Like I said before, Skins are masters of the Cap and the off-season!!! Fans are waiting for this to equate to victories!!! The more that comes out about this Cap news, the more Shadey the NFL and more importantly Fidel Goodell and Mara are looking!!! Thankfully Synders personality will come in handy for once!!!

  3. I didn’t follow all that junk accounting numbers…all I know if this is what the Redskins do best: working the salary cap. I bet if the NFL docked them 100% of their cap space, they’ll still find space to sign any…freaking…player they covet. And there’s gonna be more like this. The NFL dept of don’t-game-the-salary-cap better be ready to work serious overtime.

  4. Of course it was being creative with the cap that got the Skins in this, “we are SO screwed” position in the first place.

    Gotta remember, the NFL powers that be feel no compulsion to obey the law or even their own rules. They just dish out whatever comes to mind at the moment and expect others to grab their ankles and smile.
    The Star Cap debacle as well as other fiascos have certianly proven this point.

  5. Creative or Deceptive? Shanahan (think rodent w/whiskers) and the Bronco 97-98 SB seasons along w/the topic here.

  6. Good for them. Hopefully when the smoke clears from this cap penalty BS, we’ll have a goodell-less NFL in the near future. Here’s to wishful thinking.

  7. At an average of $766,000 per reception from 2011, that’s not a bad deal.

    i would take that jack for a 16 game season!!!! not a bad deal???? what is the league coming to these days???

  8. I fail to understand why there is awe regarding the “creativity” of the contracts.
    It is simple math and understanding of the rules.
    If the signing bonus is pro rated over the life of the deal, of course increasing the length of the contract will reduce the per year cap figure – Duh!
    However, if the contract is back loaded with the expectation that the player will not serve the full length of the contract – the cap hit for the year the player is released will be immediate.
    The team then banks on the fact that the salary cap would have gone up significantly so the hit will be absorbed much easier.
    Eventually, this tactic just comes back to bite the team in the proverbial.

  9. There are some teams that want to win, and others that do not care whether they do or not, as long as they get their revenue sharing check. The ones that want to win spend the money, the ones who don’t cry to the commissioner and demand that he save them from the big bad meanies in DC or Dallas. The ones who want to win may not always be smart, but at least they try. How would you like to be a fan of the teams with owners who do not?

  10. No written provision of what the Redskins and Cowboys have violated has yet been produced. We learned today that the NFL broke their own rule of ratification of provisions in order to screw Washington and Dallas.

    When will you IDIOTS learn that neither team broke the rules. Just because the NFL AFTER THE FACT changed the rules (from what was written) and only enforced these “guidelines” after two years and after some of the two-bit owners complained, doesn’t make any of this legal!

    Spirit of the law and actual violations are two different things. One could argue that any deal deferring compensation to future years is a violation of the spirit of the intent of the rules. But it doesn’t violate any rule.

    Judging by the change in tone of the articles posted here by the NFL, I get the sense that they know that the NFL will be in court soon and they will have to fight the best attorneys money can buy.

    Morale of this story – the NFL should pick on poor teams that don’t give a damn about winning.

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