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Main - General MFN Discussion

Dead cap

By MC_Hammer
7/12/2016 2:54 pm
I must admit that I haven't looked too much into it so don't know fully how it works, but I do know that this is a good thing...

Dead cap next year: $0 (for my Milwaukee team)

Re: Dead cap

By dei1c3
7/12/2016 5:57 pm
Any time you sign a player to a contract that includes a bonus, the bonus money can't ever come off your cap. The total bonus is prorated over the length of the contract (i.e. a $10 million bonus over a 5 year contract counts as $2 million against the cap each year). As long as you have the player, it's just part of his contract and is counted as such (i.e. current season's cap hit = season salary + season prorate of bonus).

If you cut a player, any remaining prorate of the bonus becomes dead cap and "accelerates" as follows:

- The cap hit of the bonus for the current year remains the same.
- The cap hit of any remaining years after the current year all hit next year.

Example:

$10 million bonus, 5 year deal. Original cap hits for bonus:

Year 1: $2 million
Year 2: $2 million
Year 3: $2 million
Year 4: $2 million
Year 5: $2 million

Let's say the player is cut during year 2. The cap hit is now:

Year 1: $2 million
Year 2: $2 million
Year 3: $6 million
Year 4: $0
Year 5: $0

Hope that makes sense.

As to your original point, yes, having $0 dead cap for next year is great. It basically means you didn't cut anyone with remaining bonus this year.

Re: Dead cap

By setherick
7/12/2016 6:04 pm
Also applies to any bonus money owed to a player when he retires.

Re: Dead cap

By parsh
7/12/2016 7:51 pm
dei1c3 wrote:
Let's say the player is cut during year 2. The cap hit is now:

Year 1: $2 million
Year 2: $2 million
Year 3: $6 million
Year 4: $0
Year 5: $0



The only thing I would add into this as well is trading with bonus money involve works the same as well as above

Re: Dead cap

By dei1c3
7/12/2016 7:52 pm
Good additional info guys. Yes, cuts, trades, and retirement all have the same effect.
Last edited at 7/12/2016 7:52 pm

Re: Dead cap

By Brrexkl
7/13/2016 6:22 am
Dead Cap at 48 Million of my Cap last year, and while it's still at like 18 Million this year it is currently at 0 next year.

Even as it won't stay 0, it won't sky rocket either, so now my Cap will finally be usable and the 2024 Season I can be a player in Free Agency able to offer some Max Contract.

Woohoo!

Re: Dead cap

By King of Bling
7/17/2016 3:32 pm
setherick wrote:
Also applies to any bonus money owed to a player when he retires.


Nope, if the player retires, the team is not obligated to pay the remaining season's bonuses

Re: Dead cap

By parsh
7/17/2016 3:55 pm
King of Bling wrote:
setherick wrote:
Also applies to any bonus money owed to a player when he retires.


Nope, if the player retires, the team is not obligated to pay the remaining season's bonuses


I disagree .. I believe all bonus counts (trades, cuts, retirements).

Re: Dead cap

By King of Bling
7/17/2016 4:03 pm
parsh wrote:
King of Bling wrote:
setherick wrote:
Also applies to any bonus money owed to a player when he retires.


Nope, if the player retires, the team is not obligated to pay the remaining season's bonuses


I disagree .. I believe all bonus counts (trades, cuts, retirements).


No, the team is not penalized for a player retiring. The player forfeits any remaining bonus if he chooses to retire. I guarantee it!

Re: Dead cap

By dei1c3
7/17/2016 4:07 pm