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The Salary Cap Blues

Did you know Alex Brown is due $5.5 million in 2011? Will/should Loomis actually pay him that much?  (Photo by Chris Graythen/Getty Images)

After hearing the news that a new CBA is imminent, the next bit of info I came across was the amount the salary cap for the 2011 season is estimated to be.  Before the lockout began, the estimate (according to the out-going CBA) was at $150 million. 

In 2009, the cap was at $123 million with certain stipulations that raised it to $128 million. In 2010, the cap would have been between $130 and $135 million, depending on who you ask.  2011 was estimated to be between $140 to $150 million under the old CBA structure. 

Many of us believed, if anything, the cap would stand still.  We all speculated it would be around $140 million.  Many teams extended players, got inventive with salary structures and planned for big cap hits last year in preparation for the new CBA.  Others went as young and cheap as possible, and hardly spent anything.  That link shows you what teams spent last year, this one shows you what teams have committed to the 2011 salary cap as of February -- the number may be different today.

Below we'll discuss what the new cap number is "going to be" and how this affects the Saints' options in free agency.

Star-divide

Per multiple sources, the new salary cap will be between $120 and $123 million for 2011. So how did we go from an estimated $140 million down to $120 million?  Here's what happened: in years past, only salaries were against the cap.  Benefits such as 401K, insurance, annuities, etc. were something the owners provided in addition to the 60% players got in the form of salary cap.  

But here's the (rumored) rub:  If the player's new percentage (whatever that may be) of the total revenue is set to come out to $140 million, subtract the roughly $21 million teams pay in player benefits and what remains is the salary cap.  You could almost say players are now paying their own benefits.

So how does this impact the Saints?  Back in March, we were all convinced New Orleans would have about 30 to 40 million to play with -- resign players, extend Drew Brees, sign rookies and maybe add a few value free agents. The Saints were rumored to have had $99 million committed to 2011 salaries, but after signing Shaun Rogers, Pierre Thomas and Garrett Hartley, that has to have changed some.  In February, Pat Yasinskas had the Saints at $105 million.  He had Atlanta with $102 million, Carolina with $73 million and Tampa Bay with only $60 million committed to player salaries in 2011 (which is downright criminal and sick).

Let's roll with the high estimate of $105 million.  Obviously, the $12 million that Reggie is getting will come off that, reducing the number to $93 M.  Randall Gay won't be getting the $3.5 million he's due.  I'd be surprised if Alex Brown got the $3 M base salary he's in line to make. Will Smith  ($6M base) needs to take a pay cut as well.  All these speculative moves would give the Saints wiggle room in bringing back players they feel essential, like Roman Harper or two-thirds of the offensive linemen set to be free agents. Or Lance Moore and Dave Thomas.  Teams are rumored to be getting a one-player exemption:

Because a 2011 salary cap of $120 million could cause problems for teams such as Dallas, Pittsburgh and others that currently spend more than that, one of the provisions being discussed is a one-player cap exemption for each team, according to a source. That exemption would be a $3 million credit in 2011 that would count against benefits paid out, a source said. That exemption, which could drop to $1.5 million next year, could save the jobs of players.

 I'm not sure how this will help the Saints, but it can't hurt.  We'll have to wait for the final draft of a new CBA to be released and a few lawyers to interpret the sticky points for us, but there exists a school of thought that the number teams are estimated to have committed to 2011 salary caps won't accurately reflect the 90% cash floor.  If you take anything away from this writing, just know that the Saints will have to be very creative to add any quality free agents; they'll have a hard enough time keeping everyone they wish to keep. 

In conclusion, it's really crazy that in a year where twice the normal amount of free agents will be available, the salary cap took a two year step back.  You have to think with the market flooded, value will decrease and it will help the Saints to secure players at a discount.  Here's an up to date list of every player on the Saints roster

Who do you think will be a cap casualty?  If the $105.2M number is accurate and it doesn't cause concern considering all the players we must resign this year, look a little closer at the list and you'll see all the players whose contracts end this year.  Next off-season, Drew Brees, Marques Colston, Tracy Porter, Robert Meachem, Carl Nicks, and Shaun Rogers will all be without a contract, among others.

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The list in the last link shows the base salaries. In few instances, you can see the bonus they will make just this year. Example— Shuan Rogers 2.5M in base and 1.5 M in bonus and incentives. Just adding up all the base, the salaries come in around $72 million. You have to figure all the bonus’ we don’t see are what account for the 105M estimate. I’d be real intrested to know exactly what each player’s number will be— as in how it counts against the cap for this CBA. In other words, if FA started today, exactly how much money the Saints have available to spend.

Stop wearing a wishbone where your backbone ought to be. Would you be convicted in court of being a Christian? Happiness is shared, and comes from sharing.

by Preston J. Gary, Jr. on Jul 17, 2011 1:08 PM CDT reply actions  

Nice article

Not so sure I agree about your paycuts, but it’s a nice read. We also need to sign our rookies, it will be interesting to see how it unfolds.

A good clown is a DEAD clown!

by St Jenkins on Jul 17, 2011 1:08 PM CDT reply actions  

I think Will Smith should take a pay cut. I understand he played injured with a sports hernia the entire 2008 season— which took a lot of guts considering every impact caused him tremendous pain in the guts every play. Yet I don’t believe he is worth the contract he got. I think the only reason he got that contract was because Charles Grant bent the Saints over a barrell with the threat of Tampa signing him and milked them for every stinking penny he could get, and the following year you just had to pay Will more than Charles because he was better. I think Will should take a long look in the mirror and agree he’s made a nice chunk of money and can afford to restructure/extend his contract with more reasonable number to help the team.

Drew’s done it already and he’s earned every penny and didn’t have to. Reggie’s done it twice because he knew he wasn’t worth what he was getting. Will can do it this year.

Randall Gay isn’t a starter. He makes more than Jenkins and Porter and Robinson. Greer gets paid a little more. Randall is getting starter money and with the drafting of Robinson and Patrick, his roster spot is a luxury.

Alex Brown’s base salary is $3M, but I believe his total figure is $5.5M. He’s definately not worth that. The only other fat you could probably trim would be Devery, but I’d be careful there. Devery wants to stay, Lance is a FA, and Meachem and Colston will be FA’s next year.

Stop wearing a wishbone where your backbone ought to be. Would you be convicted in court of being a Christian? Happiness is shared, and comes from sharing.

by Preston J. Gary, Jr. on Jul 17, 2011 1:23 PM CDT reply actions  

Hmmm

Dwight Freeney is getting 11.42 million this year, so Will is getting close to half. Looks good to me. Dwight got only one sack in the Super Bowl against the Saints, the game that really mattered. Will “could” have a great year with a better front four this year, an advantage Grant could never deliver.

A good clown is a DEAD clown!

by St Jenkins on Jul 17, 2011 7:27 PM CDT reply actions  

But....

I do like someone else sticking their neck out, rather than me so the respect is there, I only comment to “help” if I actually do.

A good clown is a DEAD clown!

by St Jenkins on Jul 17, 2011 7:33 PM CDT reply actions  

It’s true he is only getting half of Freeney THIS year, but he already banked close to $25 million in bonus money. Good point though, I hadn’t looked at it that way. I don’t know about you, but I’m counting on Will and Sedrick to have big years. They must; we simply need them to.

My whole point about Will’s contract was that when Freeney got his $70 million, everyone thought that was a fair market price and he deserved it. When Will and Charles got close to the same thing (though they got it first), I don’t think any (of us) thought they were “worth” it. The good thing is that all his guaranteed money (aside from 150K workout bonus and small sack escalators) has been paid out. If we needed anyone to restructure, Will Smith is the prime candidate.

Stop wearing a wishbone where your backbone ought to be. Would you be convicted in court of being a Christian? Happiness is shared, and comes from sharing.

by Preston J. Gary, Jr. on Jul 17, 2011 8:50 PM CDT reply actions  

They must; we simply need them to.

You can say that again.

They must; we simply need them to
Did I do that?

Lets see what happens.

Maybe MARY JANE will load up and pass the PEACE PIPE around the conference room and they’ll all get happy in a big hurry, which might just help speed up the process. - HansDat

by cscmember on Jul 17, 2011 10:09 PM CDT up reply actions  

Is the cap going to continue to raise per year?

And at a similar rate?

"J.R. SMITH! WITH NO REGARD FOR COMMON SENSE!" - Future Kevin Harlan Quote
"They're two-deep at the crazy position!" - Kenny "The Jet" Smith.

by Agaliarept on Jul 18, 2011 4:11 AM CDT reply actions  

you're not taking cap hits into account

You’re taking Reggie’s $12 million clean off the books. There’s a $3.5 million hit if they release him, and if they restructure his new salary would still count against the cap. Either way, it’s not like they can wipe $12 mil clean off the books.

Gay and Henderson are the same deal, the team can release them and take the lion’s share of their due off the books, but not all of it.

Further, signing Drew Brees to a long term deal would probably give immediate cap relief (assuming it’s backloaded) because he’s in the back end of a backloaded deal now. They can pay him more in a huge signing bonus that gets prorated per year in terms of the cap, so Drew would actually physically make more money in 2011, but would count less against the cap, if that makes sense. In the long term his cap number will inflate every year, but in the short term Brees would count less against the cap in 2011 with a new deal.

by Andrew Juge on Jul 18, 2011 9:27 AM CDT reply actions  

New Orleans. We all know the Reggie Bush situation. He’s scheduled to count $16 million against the cap. If the Saints release him, they’d only be responsible for $3.5 million in pro-rated bonus money. But it sounds like Bush and the Saints will try to work out a new contract to keep him. It’s unknown if cornerback Randall Gay has been medically cleared after suffering a concussion early last season. If he has, the Saints easily could release him. They’d free up more than $4 million in cap space and they have plenty of other cornerbacks. Wide receiver Devery Henderson also has a relatively high cap figure ($3.225 million) and the Saints could clear up $1.5 million by releasing him. Defensive end Alex Brown is probably safe because the Saints don’t know yet what they have in rookie Cameron Jordan. But Brown is scheduled to count for $3 million and it wouldn’t cost the Saints anything to cut him.

http://espn.go.com/blog/nfcsouth/pos…cap-casualties

From Pat Yasinskas today. Thought it would help.

You’re right Andrew— I’m not taking that fully into account. I just can’t find a website that lists those details, which was why I said in my first comment:

I’d be real intrested to know exactly what each player’s number will be— as in how it counts against the cap for this CBA. In other words, if FA started today, exactly how much money the Saints have available to spend.

Stop wearing a wishbone where your backbone ought to be. Would you be convicted in court of being a Christian? Happiness is shared, and comes from sharing.

by Preston J. Gary, Jr. on Jul 18, 2011 11:34 AM CDT reply actions  

Preston, I think your thoughts on the saints asking Will Smith to take a paycut would be very sound thinking if this was a regular off season. But with such a short time to sign players/draft picks plus the Saints need for pass rushers I think they will put it off until next off-season.

I expect Saints to add a couple mid level Free agent guys on defense and sign their own guys.

My question is what Saints free agent will sign with another team first? No one jumps out but could a team get crazy and try to sign Nicks with poison pill contract?

by Malbrough on Jul 18, 2011 11:54 AM CDT reply actions  

I’d almost say that Nicks is a guy I would over-spend to keep. That top notch G tandem is key to having balance and keeping that pocket looking like a pocket. I’d rather spend on Nicks and never have a blue-chip T than let Nicks go elsewhere. The Blitz up the middle gets there quicker than around the T. Fastest route from A to B is a straight line. With Nicks and Evans, Drew has the luxury of stepping up.

While I think Brees and Payton want Moore back in a big way, I think Moore is the player I’d worry most about switching teams. If you look at the “bridge” contract the Saints gave Colston, I think Lance could get more than that.

Stop wearing a wishbone where your backbone ought to be. Would you be convicted in court of being a Christian? Happiness is shared, and comes from sharing.

by Preston J. Gary, Jr. on Jul 18, 2011 1:42 PM CDT reply actions  

Preston, I’m not sure about your thoughts on Lance. After his career year in 08 he barely got a nibble from other teams. Granted the the Saints had right of first refusal and would have got a 2nd round pick if he left but I think other teams look at Saints WR as system guys. Devery had absolutely no market when he was a free agent.

But Lance does seem like the perfect possession guy for a team with young upcoming QB like the Rams with Bradford or Cleveland with McCoy but I just don’t think other teans think as highly of the Saints WRs as we do.

by Malbrough on Jul 18, 2011 2:21 PM CDT reply actions  

I’m with you on our perception of Saints Wr’s and likely most teams perception. How many people last year were convinced if Adrian Arrington didn’t make the final 53 there was “no way” he’d clear waivers and make the practice squad?

That said, I think Lance’s value went up a good bit last year. He’s like a poor man’s Wes Welker. I’d think there are plenty of teams that could use him and see him as the perfect slot WR. Lance isn’t big or particulary fast, he’s just a damn good football player who works his butt off and runs crisp routes. He get’s separation and gets open, and does so consistantly. He kind of “came out of nowhere” with the 2008 season, but his 2010 campaign proved it wasn’t a fluke. That’s why I’m a little nervous.— Lance knows he’s worth more than what he’s making.

As for Devery, the Bucs and two other teams wanted him in for interviews, but Devery declined because he wanted to stay a Saint and was hoping they’d make him an offer once the market settled. Devery could be lying to increase his value, but he made those comments AFTER he had resigned.

In the old FA, you had that first week and a half where the big names choose, then you had a period over the following few weeks where mid level guys went, then a period where depth and older vets whose ego’s finally accepted their value go. Devery didn’t have week one intrest, but he said he still had second phase intrest, with the Bucs pushing the hardest.

I’d hate to see Lance go to the Rams. I’d especially hate to see him go to Atlanta. That would make me a little scared.

Stop wearing a wishbone where your backbone ought to be. Would you be convicted in court of being a Christian? Happiness is shared, and comes from sharing.

by Preston J. Gary, Jr. on Jul 18, 2011 3:09 PM CDT reply actions  

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