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Thread: Does the 8mil allow for a cap credit to next year?

  1. -1
    PhinsTD's Avatar
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    Does the 8mil allow for a cap credit to next year?

    If we are to get the money back from RW, does the money become a cap credit such as a returned signing bonus does?

    I would like to think we would get a credit of some sort for it.

    Also, doesn't RW contract have a clause that his incentives travel from year to year? If so, wouldn't the LTBE incentives from this year that we're getting billed for give us a credit next year?

    I've been in Reno for the last 8 days so if this has been discussed I apologize. (I almost didn't even hear of the retirement while there)
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    No. The only cap benefit we get is from losing the base salaries for the remainder of the contract.
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    Quote Originally Posted by PhinsmissedFG
    If we are to get the money back from RW, does the money become a cap credit such as a returned signing bonus does?

    I would like to think we would get a credit of some sort for it.

    Also, doesn't RW contract have a clause that his incentives travel from year to year? If so, wouldn't the LTBE incentives from this year that we're getting billed for give us a credit next year?

    I've been in Reno for the last 8 days so if this has been discussed I apologize. (I almost didn't even hear of the retirement while there)
    Ricky's situation is complicated. The Saints paid the signing bonus and the Dolphins paid the incentives. The actual rule is for signing bonus refunds.

    Credit for Signing Bonuses Refunded.

    In the event that a Team receives a refund from the player of any previously paid portion of a signing bonus, or the Team fails to pay any previously allocated portion of a signing bonus, such amount as has previously been included in Team Salary shall be added to the Team’s Salary Cap for the next League Year.
    The rule for incentives , which are also considered bonuses, is if paid taking team salary over the cap it is charged to next year. If the incentive is charged to the current year (because it is considered "Likely To Be Earned" LTBE) and not achieved it is credited to the next year's cap. I don't think they envisioned earned incentives ever being paid back.

    Since the Saints paid the signing bonus: If the unearned portion of the signing bonus is paid back, the Dolphins should not be able to take any cap credit as it was never charged to their cap.

    Since the Dolphins paid the incentives they should be able to take a cap credit for any paid refund but the rule is specifically for signing bonuses.

    The consistent principle here is if any amount is charged or not charged it will be corrected the next year.
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    PhinsTD's Avatar
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    That's what I was thinking, if anything comes of it we'll get a credit for next year.

    We should get a credit for his LTBE incentives from this year though that are already charged, correct?

    DolfanDave, thanks for the input but I already know all about the base salary etc. refunds we'll get. My question is specifically about any refunds or LTBE credits towards next years cap.
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    Merman's Avatar
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    Quote Originally Posted by PhinsmissedFG
    That's what I was thinking, if anything comes of it we'll get a credit for next year.

    We should get a credit for his LTBE incentives from this year though that are already charged, correct?
    Well if you read my post I don't think a cap credit is in order for the signing bonus as the Dolphins did not pay it. Ricky's signing bonus was never nor should have been charged to the Dolphins' salary cap. So it doesn't make any sense for a cap credit even if it does make any sense to receive a refund.

    It doesn't make any sense for a refund of an earned incentive but if there is a refund then a cap credit does make sense as this amount was properly charged to the Dolphins' salary cap. :googly:

    Since the Dolphins renegotiated Ricky's contract in 2002 the incentives he earns increase his base salaries for every year. This year's base salary already includes last year's earned incentives.
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    I wonder if the Saints could claim that refund of the signing bonus. They made the trade assuming RW would, at a minimum, honor his original rookie deal (even though it was re-working by Miami). They could work with the Fins to get this money back. Miami get a credit for incentives paid (although, as Merman has stated, no language appears to apply) and Saints get credit for the signing bonus refund.
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    The Saints should not get any cap credit if Miami gets a refund for the signing bonus. The Saints gave up their rights to Williams to Miami for agreed upon compensation. The rights to the signing bonus should transfer to Miami also as it is part of the contract. Though not the right to a cap credit from a refund.

    Once the trade was finalized Williams has no further obligation to New Orleans and they have no claims to him.

    Ricky was traded to Miami with his contract which was just renegotiated, it was not a new contract. He was then obligated to Miami with the original contract and some new terms.
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    Saints paid the signing bonus, assumed the cap charge, but Miami get the money?
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    Al13's Avatar
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    sure, they got 2 first rounders for that quitter, why not give the money to wayne
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