how do cap penalites work?

[niftyjets]

if i cut a player now in pre season how long do the cap penalites stay on will they be gone next season??

[Sheik]

the answer depends.

let's do the math this way.

Let's say you sign Mike Vick to a 4 year contract that totals $20,000,000

but you break that up and say...his base salary is $12,000,000 and his bonus is $8,000,000 for a total of $20m.

Base Salary: 12m/4yr= 3m a year in base salary

+

Bonus Money: 8m/4yr= 2m a year in bonus slary

so it averages out to 5 million dollars per year.
it may be backloaded or equall all the way through, but if you average his salary over those 4 years, it will be about 5 million per year.

so let's say you roll with Vick for two years, then cut him.

Well, remember bonus money is guaranteed money in the NFL. If you say you're going to pay it, then you're going to pay it period.

so, out of the 8 million that you promised to pay him no matter what, you've already paid him 4m. So, you've got 4 million left to pay of that bonus money.

that 4 million will be split into two equal payments, now known as cap penatlies over the next two years. so you will have a cap penalty of 2m that year you cut or trade him and another penalty of 2 million in the following year associated with any action you take to remove him from your team. (it's always two seasons in this game) no, your cap penalties don't move to another team if you trade a player, that player will just show as NOT having a bonus to the team that receives them.

hope that helps