Question about cap penalties

[macbranson]

How exactly do cap penalties work? I thought that if a player is released or traded, the remainder of his signing bonus is applied as a cap penalty for the next season. But I released someone yesterday and the cap penalty was split. Half hit me this season and the other half next season. Does the way the cap penalty hits you depend on the time of the season that the player is released or is it always split up like that? Because I would actually prefer that it's split up so it's not such a big hit against the salary cap. Any clarification would be appreciated.

[MarshawnLynch]

Re: Question about cap penalties

i know that if there is 2 years left on a contract it will split for that season and next and some times it depends on how much the signing bonus is if its 200k then it might not split for the next year now if its 1M it could split 500k each year . now if there is 3 years left it also splits for that year and next but the next year u pay more then the first year. and its what ever the signing bonusis. now if signing bonus is 5M on 3 years 1.6M the first year and 3.3M next to make up the 5M. hope this helped cheers.

[Jr.]

Re: Question about cap penalties

If a player is released during the season, their penalty is divided over the next 2 seasons. The penalty for the current season will be whatever his yearly signing bonus is. The penalty for the next season will be the remainder of the bonus amount.

If a player is released during the offseason, the entire penalty is applied to the upcoming season.

[macbranson]

Re: Question about cap penalties

Explained perfectly. Thanks. Now I know how to kind of finagle it so as to not take too much of a cap hit in one season.

[kpkpkp]

Re: Question about cap penalties

If a player is released during the season, their penalty is divided over the next 2 seasons. The penalty for the current season will be whatever his yearly signing bonus is. The penalty for the next season will be the remainder of the bonus amount.

If a player is released during the offseason, the entire penalty is applied to the upcoming season.

I've always wondered this, thanks.

It sounds like releasing players during the off season is more expensive. (Well, both ways will cost the same in the end) But at least releasing a player mid season would split up bonus payments over two seasons if a player has two or more years worth of bonus coming.

[Patsnation34]

Re: Question about cap penalties

I get confused when it says 'Cap Room' and 'Available funds' when resigning a player, is Available Funds my owners Money?

[brodazhiwei]

Re: Question about cap penalties

The penalty for the next season will be the remainder of the bonus amount.

[sfhxgqing]

Re: Question about cap penalties

How exactly do cap penalties work?

[kpkpkp]

Re: Question about cap penalties

If a player is released during the season, their penalty is divided over the next 2 seasons. The penalty for the current season will be whatever his yearly signing bonus is. The penalty for the next season will be the remainder of the bonus amount.

If a player is released during the offseason, the entire penalty is applied to the upcoming season.

I have some questions to further clarify this;

If I cut a player during off-season with 1.5mil cap hit plus his 150K a year bonus on a 3 year deal... I have to pay his full bonus amount of 450K as penalty in the upcoming season, right? Conversely; if I cut him mid-season I would then pay 150K for the current season and 300K the following season?

More importantly.... Does this "penalty" now come from my cap space? Or do you continue to pay it from the "owner" money?

[Jr.]

Re: Question about cap penalties

I have some questions to further clarify this;

If I cut a player during off-season with 1.5mil cap hit plus his 150K a year bonus on a 3 year deal... I have to pay his full bonus amount of 450K as penalty in the upcoming season, right? Conversely; if I cut him mid-season I would then pay 150K for the current season and 300K the following season?

Correct.

More importantly.... Does this "penalty" now come from my cap space? Or do you continue to pay it from the "owner" money?

The penalty comes from your cap space. The total amount of the bonus is taken from your owner funds once the contract is signed. So if you sign a player to a 5 year deal with a $3M per year bonus, you will have $15M taken from your owner funds immediately.

[kpkpkp]

Re: Question about cap penalties

Correct.



The penalty comes from your cap space. The total amount of the bonus is taken from your owner funds once the contract is signed. So if you sign a player to a 5 year deal with a $3M per year bonus, you will have $15M taken from your owner funds immediately.

Woah, I didn't realize the $15 in signing bonus is taken right away, I just thought the first years worth was... but now I'm wondering something else...

If I were to cut this player in year 2 of his deal (so 4 years remain) I would have to pay $12 million in his remaining bonus over 2 years from my cap space even though he got it all when he signed?

Isn't he getting his remaining bonus doubled then?

[preaceps]

Re: Question about cap penalties

The 15 million would be taken out right away. But its spread over all the years. Meaning yes you would get a hit of 12million that 2nd year. But it would not come out of the funds that you see on main screen, your available cash

[mercalnd]

Re: Question about cap penalties

Woah, I didn't realize the $15 in signing bonus is taken right away, I just thought the first years worth was... but now I'm wondering something else...

If I were to cut this player in year 2 of his deal (so 4 years remain) I would have to pay $12 million in his remaining bonus over 2 years from my cap space even though he got it all when he signed?

Isn't he getting his remaining bonus doubled then?

You are not paying the cap penalties. It's just that your cap room gets reduced by the amount of the penalty. The actual payment has already been made. Even if you keep the player, you aren't actually paying him the bonus money every year but it's all paid up front and then amortized over the duration of the deal on the cap.

[kpkpkp]

Re: Question about cap penalties

You are not paying the cap penalties. It's just that your cap room gets reduced by the amount of the penalty. The actual payment has already been made. Even if you keep the player, you aren't actually paying him the bonus money every year but it's all paid up front and then amortized over the duration of the deal on the cap.

OK thanks, I think I finally understand about cutting/trading/releasing guys and how it affects cap.

Apparently I didn't understand it very much,lol.

So let me ask his... If I sign a guy to a 4 year deal with 1.5mil salary and 1mil bonus each year I have to pay 4million right away from my Owners funds for his full bonus. And my cap immediately goes down by 1.5mil? Or is it 2.5mil?

And then if I cut him a year later he will have 3 years left... I get a "cap hit" 3mil divided over 2 seasons (so 1.5mil each year)

Thanks again.

[Jr.]

Re: Question about cap penalties

OK thanks, I think I finally understand about cutting/trading/releasing guys and how it affects cap.

Apparently I didn't understand it very much,lol.

So let me ask his... If I sign a guy to a 4 year deal with 1.5mil salary and 1mil bonus each year I have to pay 4million right away from my Owners funds for his full bonus. And my cap immediately goes down by 1.5mil? Or is it 2.5mil?

And then if I cut him a year later he will have 3 years left... I get a "cap hit" 3mil divided over 2 seasons (so 1.5mil each year)

Thanks again.

Basically. The Cap # shows what you're paying all of your players for each individual season. Madden sets up contracts to be more expensive at the end than at the beginning. So that 4 year contract won't be $2.5M per year (salary + bonus) because the salary will escalate throughout the contract while it averages $1.5M per season.

For the 2nd part, that is a little off. If you cut the guy a year later the cap penalty for that season will be $1M (because that's the yearly bonus amount for cap purposes) and $2M the following year (because that is what will remain from the bonus).