Another Twist in Salary Cap Management

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12-02-2014, 12:38 PM
Patler

Another Twist in Salary Cap Management

From an NFP article on the 10 players with the highest cap numbers in 2014:

Quote:

9. Aaron Rodgers (QB)-Green Bay Packers: $17.55 million

Rodgers is the highest-paid player in NFL history (by average yearly salary). He signed a five-year, $110 million contract extension in 2013 containing $54 million in guarantees, which included a $35 million signing bonus. The 2011 NFL MVP’s 2014 cap number was originally $17.9 million. The signing bonus proration dropped from $7 million annually in Rodgers’ 2014-2017 contract years to $6.65 million because of insurance policy payments to the Packers relating to the quarterback missing seven games last season with a broken collarbone.

http://www.nationalfootballpost.com/...cap-kings.html

Didn't know they could insure the salary cap hit in that way. But, this raises a question: If an insurance payment allows you to gain back salary cap dollars, is the insurance premium for the policy a salary cap expense?
12-02-2014, 12:45 PM
smuggler

The answer to that question is yes.
12-02-2014, 01:17 PM
Fritz

If it's not, you could insure the heck out of everyone and have all kinds of sal cap room!
12-02-2014, 02:16 PM
Patler

Quote:

Originally Posted by smuggler

The answer to that question is yes.

Do you have any details about it? Any limits on how much can be insured, how the coverage works, or how much it costs, etc.?
12-02-2014, 02:33 PM
mraynrand

Quote:

Originally Posted by Patler

is the insurance premium for the policy a salary cap expense?

Can they get the cap hit reduced with a safe driver discount? Football fans want to know.
12-02-2014, 02:40 PM
NewsBruin

According to my University of Google sports economics degree:

Start reading around "Sometimes minor changes."
12-02-2014, 03:53 PM
smuggler

I don't have the sourcing. But I asked this same question when the insurance payment was made last season and came to the conclusion that the premium was accounted for in the salary cap. It was included in the contract language iirc.
12-02-2014, 04:03 PM
mraynrand

Quote:

Originally Posted by smuggler

I don't have the sourcing. But I asked this same question when the insurance payment was made last season and came to the conclusion that the premium was accounted for in the salary cap. It was included in the contract language iirc.

thank god that's cleared up - I wasn't going to be able to sleep tonight!