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Cap Floor - Can you do this?

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07-03-2008, 06:31 PM
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It Kills Me
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Cap Floor - Can you do this?

Since there's no bonus cushion anymore and say you sign a guy at $1M with up to $5M in bonuses.. He counts as $5M against the cap right?

Can a cheap/poor team just sign a bunch of fourth liners to $1M dollar contracts with score 90pts for $5M bonuses to reach the cap floor? But since these guys aren't going to score 90pts they save money and are therefore not broke?

Thanks.

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07-03-2008, 06:49 PM
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Mr Shanahan
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I'm not too sure. Maybe. There's probably a loophole, somewhat like that.

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07-03-2008, 06:53 PM
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I doubt it's that..clearcut.

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07-03-2008, 07:22 PM
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znk
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One thing that can be done is this.

Rich team signs a player to a front loaded 4 year contract.
10-10-4-2 (cap hit $6.5M)
On the 4th year trades the player to poor team.
The poor team pay $2M but get a $6.5M cap hit.

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07-03-2008, 07:24 PM
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NOTENOUGHBREWER
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Quote:
Originally Posted by Chocolate Skittles View Post
Since there's no bonus cushion anymore and say you sign a guy at $1M with up to $5M in bonuses.. He counts as $5M against the cap right?

Can a cheap/poor team just sign a bunch of fourth liners to $1M dollar contracts with score 90pts for $5M bonuses to reach the cap floor? But since these guys aren't going to score 90pts they save money and are therefore not broke?

Thanks.
Only players over 35 on 1 year deals can get bonuses though.

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07-03-2008, 07:32 PM
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Benji Frank
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Originally Posted by NOTENOUGHBREWER View Post
Only players over 35 on 1 year deals can get bonuses though.
how do buyouts work? if you're a certain age, does the team need to eat the whole value of a buyout?

I'm wondering if a team can sign someone like Jagr to a 3 year deal for say 3.5 per year with the understanding that they'll likely buy him out after this year ... essentially, the cap hit this year is 3.5 mill and then roughly 1.2 mill per for the next 4 years..... so a cap strapped team essentially pays him 8 mill for this year but spreads it out over 5 years ... can this be done? if so, what are the odds teams start offerring contracts with this in mind ... knowing in the cap could be 60 mill or more next year the way things are going???

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07-03-2008, 07:45 PM
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Quote:
Originally Posted by Chocolate Skittles View Post
Since there's no bonus cushion anymore and say you sign a guy at $1M with up to $5M in bonuses.. He counts as $5M against the cap right?

Can a cheap/poor team just sign a bunch of fourth liners to $1M dollar contracts with score 90pts for $5M bonuses to reach the cap floor? But since these guys aren't going to score 90pts they save money and are therefore not broke?

Thanks.
Performance bonuses can only be given to:
-- Entry-level players [maximum $2.85 million total; $2 million Schedule B and $850,000 Schedule A],
-- Players 35 and older signed to a 1-year contract, and
-- Players who were on IR for at least 100 days in the prior year and signed to a 1-year contract.

Unless you know some 4th-liners who fit that criteria, your example fails. It's also incredibly unlikely the league approves a contract that is a blatant attempt to either stay under the cap or get over the floor.

Quote:
Originally Posted by Benji Frank View Post
how do buyouts work? if you're a certain age, does the team need to eat the whole value of a buyout?

I'm wondering if a team can sign someone like Jagr to a 3 year deal for say 3.5 per year with the understanding that they'll likely buy him out after this year ... essentially, the cap hit this year is 3.5 mill and then roughly 1.2 mill per for the next 4 years..... so a cap strapped team essentially pays him 8 mill for this year but spreads it out over 5 years ... can this be done? if so, what are the odds teams start offerring contracts with this in mind ... knowing in the cap could be 60 mill or more next year the way things are going???
Players 26 or older at the time of the contract must be paid 2/3rds of the remaining value of the contract; players 25 and under are paid 1/3rd.

Yes, a team could do this ... but why they'd pay $8 million to accomplish this, I have no idea.

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07-03-2008, 08:07 PM
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Quote:
Originally Posted by Irish Blues View Post
Performance bonuses can only be given to:
-- Entry-level players [maximum $2.85 million total; $2 million Schedule B and $850,000 Schedule A],
-- Players 35 and older signed to a 1-year contract, and
-- Players who were on IR for at least 100 days in the prior year and signed to a 1-year contract.

Unless you know some 4th-liners who fit that criteria, your example fails. It's also incredibly unlikely the league approves a contract that is a blatant attempt to either stay under the cap or get over the floor.
Alright, sign a bunch of oldies.. Nolan, Drake, Richardson. Or have them all suddenly retire in November.

Getting to the cap floor without spending a lot of money isn't that hard is it?

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07-03-2008, 08:19 PM
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Benji Frank
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Originally Posted by Irish Blues View Post
Players 26 or older at the time of the contract must be paid 2/3rds of the remaining value of the contract; players 25 and under are paid 1/3rd.

Yes, a team could do this ... but why they'd pay $8 million to accomplish this, I have no idea.
I was hoping you'd see this 'cuz you're the board cap Guru from what I can tell!

I just was thinking a team whose close to the cap like Pittsburgh and is close to being a Cup calibre team might be able to convince Jagr to come over for a year with an arrangement like this knowing he'll hten be getting paid 1.2 or so per for 4 more years while having an opportunity shop his services elsewhere.....

Then they won't have to trade a guy like Whitney to get under hte cap and Jagr gets and extra mill or so (assuming he'd get close to 7 elsewhere) for accepting the arragnement...

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07-03-2008, 09:45 PM
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white_tiger
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Quote:
Originally Posted by Chocolate Skittles View Post
Since there's no bonus cushion anymore and say you sign a guy at $1M with up to $5M in bonuses.. He counts as $5M against the cap right?

Can a cheap/poor team just sign a bunch of fourth liners to $1M dollar contracts with score 90pts for $5M bonuses to reach the cap floor? But since these guys aren't going to score 90pts they save money and are therefore not broke?

Thanks.
Only first year rookies and vets 35 and over on 1 years cab even get bonuses I believe,..

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Old
07-03-2008, 10:07 PM
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Irish Blues
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Quote:
Originally Posted by Chocolate Skittles View Post
Alright, sign a bunch of oldies.. Nolan, Drake, Richardson. Or have them all suddenly retire in November.
1. I'll repeat: "It's also incredibly unlikely the league approves a contract that is a blatant attempt to either stay under the cap or get over the floor."
2. Let's say a team signs these guys to get to the floor now, and they retire in November; when they retire, they quit counting against the cap - and a team must be in compliance [read: carrying players on the Active Roster that, if carried for the remainder of the season with no changes, is in compliance with the salary cap system] at all times during the season. If they retire and it puts the team back below the Lower Limit, then what?

Quote:
Originally Posted by Chocolate Skittles View Post
Getting to the cap floor without spending a lot of money isn't that hard is it?
Some teams are betting that there will be teams that will need to get to the Lower Limit in a few years and will have difficulty doing so [or will want to do so as cheaply as possible] - hence, huge front-loaded contracts like Briere's.

Quote:
Originally Posted by Benji Frank View Post
I just was thinking a team whose close to the cap like Pittsburgh and is close to being a Cup calibre team might be able to convince Jagr to come over for a year with an arrangement like this knowing he'll hten be getting paid 1.2 or so per for 4 more years while having an opportunity shop his services elsewhere.....
Again ... why would a team that thinks it's a Cup-caliber team lob a huge contract to a player with the intention of buying him out after the first season and carry dead cap space for years after? That would just handcuff them in case they decide next year they're still a Cup-caliber team [and we're still playing under this CBA because the players didn't reopen it] ... and possibly force them to have to pass on a player or players that could help get them over the top.

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