jericholic19 said:
Part of Gary Bettman's entourage? A salary cap doesn't work as well as some think. NFL teams go over the cap on average by 5 mill via bonuses and deferred payment. Don't believe me? How much did Mike Vick sign for? 130 mill for 10 years with 30 mill as a signing bonus! The NFL system works because of significant REVENUE SHARING and a huge TV contract as we all friggin now by now.
Mike Vick signing for $130M has nothing to do with going over the cap. The $30M signing bonus will be paid out immediately, but for cap purposes will only count for $3M per year (unless he is cut before the end of the contract). The rest of the contract averages out to $10M per year, but how is it structured? Is it back loaded:
$3M the first year,
$4M the 2nd,
$5M the 3rd
$6M
$7M
$10M
$12M
$15M
$18M
$20M
If so, he probably won't see the last three years of that contract where $53M of that contract is due. That is usually how these contracts are structured, and since the contracts are not guaranteed, there is no real penalty for cutting the player, and that is why signing bonuses are so important in the NFL.
As for the other bonuses, they do count towards the cap, but they look at what is "achievable" to make a decision to count a bonus against a cap. They do that by looking at the previous season. If a player had a $1M bonus for getting 10 sacks, and only had 6 the year before, that $1M will not be counted against the cap.
The only way to get around doing something like that would be to say that all bonuses count against the cap, which would put more money in the owners pocket if those bonuses are not achieved.
Edit: Found this link...
http://www.afl.atfreeweb.com/AFL/NFL Salary Cap 101.htm
LIKELY TO BE EARNED (LTBE)
Other amounts players earn count against the salary cap only if they are likely to be earned ('LTBE'). These other amounts include, but are not limited to, performance and honors incentives, roster bonuses, reporting bonuses and off-season workout bonuses.
As noted in my previous column of July 14, 1999, to determine whether a performance or honor incentive is LTBE for veteran players, you need to examine the player's and/or team's prior year on-field performance. If a running back will earn a $100,000 incentive if he has 1,000 rushing yards in 2000, his 1999 performance must be analyzed to determine if the incentive is LTBE for 2000 and counts against his team's 2000 salary cap. If the player rushed for 1,000 or more yards in 1999 then the incentive is LTBE in 2000 (counts against the 2000 salary cap). If the player rushed for less than 1,000 yards in 1999 then the incentive is not likely to be earned (NLTBE) and does not count against the salary cap in 2000. The same rule applies for any team incentives that are negotiated. Note there are some exceptions to these basic rules.
jericholic19 said:
Meanwhile, the soft cap in the NBA is a joke. Team are so commonly over the cap and there is still significant payroll differences.
Agreed. I don't know much about the NBA cap, but what I have heard is it isn't very good, but still much better than baseballs cap
jericholic19 said:
If the NHL wants parity, the rich owners will share their money with Edmonton and the like. Yet, they don't want to. Instead, these teams want ticket prices to remain status quo while raking in huge amounts of money by instituting a cap of some sort. At the same time, the small market clubs will still struggle financially since a cap of 30 mill is possibly too high for them. Furthermore, the large market clubs will find some way to circumvent the cap to some extent (as is so commonly done in other pro leagues), thus giving them more leverage against financially strapped clubs.
In the end, you got large market teams in Detroit, Colorado, and Philly making more money than before and still having a significant upper hand against markets. YAAAYYYY NHL!
At the same time, you're absolutely correct in stating both sides need to meet in the middle to find a system that parallels the NBA, but with more revenue sharing. A luxury tax system will not do.
I agree that more revenue sharing should be included, but that is not as important as putting some kind of cap in place. If you had 100% revenue sharing and no cap, you would still have teams that don't mind losing money (they are doing it now, why would they change?), and those teams will continue to drive up salaries. The only difference is that the loses would be spread out more evenly among all teams.
I don't know what the answer ultimately will be, but there does have to be a strong limit on what teams can spend on salaries, or it will not achieve the objectives of reducing payroll disparities and giving cost certainty.