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Thread: Another Twist in Salary Cap Management

  1. #1
    Fact Rat HOFer Patler's Avatar
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    Another Twist in Salary Cap Management

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

    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?

  2. #2
    The answer to that question is yes.

  3. #3
    Neo Rat HOFer Fritz's Avatar
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    If it's not, you could insure the heck out of everyone and have all kinds of sal cap room!
    "The Devine era is actually worse than you remember if you go back and look at it."

    KYPack

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    Fact Rat HOFer Patler's Avatar
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    Quote Originally Posted by smuggler View Post
    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.?

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    Roadkill Rat HOFer mraynrand's Avatar
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    Quote Originally Posted by Patler View Post
    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.
    "Never, never ever support a punk like mraynrand. Rather be as I am and feel real sympathy for his sickness." - Woodbuck

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    Senior Rat Veteran NewsBruin's Avatar
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    According to my University of Google sports economics degree:

    Start reading around "Sometimes minor changes."
    I believe in God, family, Baylor University, and the Green Bay Packers.

  7. #7
    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.

  8. #8
    Roadkill Rat HOFer mraynrand's Avatar
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    Quote Originally Posted by smuggler View Post
    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!
    "Never, never ever support a punk like mraynrand. Rather be as I am and feel real sympathy for his sickness." - Woodbuck

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