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Old 02-15-2013   #16
CloakNNNdagger
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Default Re: Texans - 2.4 Million Cap Carryover for 2013

This NOT good news. The expected 2015 significant increase in the NFL Cap limit because of expected windfall TV contracts in 2014 may very well NOT occur.
Quote:
Salary cap spike not expected this year, or any year

That belief [spike in Cap limit] seems to be mistaken.

Per a source with extensive knowledge of the design and implementation of the cap, the formula will experience a “smoothing” in the coming years, with no one year resulting in a dramatic leap. The thinking is that, if the cap shoots up dramatically from one year to the next, it won’t be fair to the players who signed a big contract in the year in which the cap was lower.

The smoothing phenomenon is more likely to unfold even in 2015 because, in 2012, money from future cap years was shifted to a year in which the cap was poised to drop, due to the revenue decreases from 2011, the year of the lockout. (Even though only one game was missed during to the lockout, months of uncertainty affected fan and sponsor spending during the offseason shutdown.)

This robbing of Peter to pay Paul means that the expected growth will peter out when otherwise expected to spike.

As a result, teams that deal with current cap problems by pushing money into the future under the assumption that there will be extra space at some point could be positioning themselves for a perpetual cap purgatory.
link

The Texans are one of those teams that may very well be headed to absolute Cap Hell.

We need to tie up Cushing by next year. We don't want to take a chance and wait for 2015 to tie up Watt, therefore also signing him up for 2014.

And for those that keep on saying don't worry.........if we release Schaub after this year, there is negligible effect on the cap,
YOU ARE ABSOLUTELY WRONG!

His contract consists of $29.15 mil guaranteed, broken down to his 2012 and 2013 base salary with the remainder in signing bonus ($18.250 mil) spread over the entire 5 year contract. If Schaub is released after 2013, he still has remaining $10.5 mil in signing bonus (scheduled for 2014, 2015 and 2016) which must be paid..........and paid accelerated ALL into the year 2014.

Year Base Salary / S. Bonus

2012 4,400,000 / 4,250,000
2013 7,250,000 / 3,500,000
2014 10,000,000 / 3,500,000
2015 12,500,000 / 3,500,000
2016 14,500,000 / 3,500,000
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