Excellent explanation thank you, I've been watching football most of my life and never knew what Franchise Tag meant, never bothered to look it up until now I'm watching the Giants Hard Knocks and they keep talking about Barkleys contract and Franchise Tag.
Signing bonuses are not just guaranteed. They also give you money right now, which you can invest and make more money out of. Even if the last year of your contract was guaranteed, you would still want money upfront.
On spotrac, it sometimes mentions potential "outs" in some contracts (like 2026 for russ Wilson's contract) - wondering what that means and how it relates to cap hit/dead cap for his contract? Love the vids!
To my understanding it's the point in the contract where most or all of the guaranteed money has been paid. This lowers the dead cap hit significantly. I.E. cutting Daniel Jones this year would have meant also 70mil dead cap for the Giants. Waiting till next year means they will only take ~20mil. Obviously teams can still elect to cut players earlier like the Wilson example shows.
Idk dude, I feel like telling a pro football player that we're gonna put money on you NOT being able to do something might be pretty motivational lol, unless it's so unlikely the player knows it won't happen no matter how good they play. Like, "tell me I won't rush for 2200 yards this year!! Say I won't!!" lol and they go out saying they're gonna do just that all year.
I took it as motivating to sign the contract. Players generally don’t want incentive-laden contracts, even less so incentives they have a lower chance of meeting.
I know I'm a year late to this conversation but currently there are about half the league OVER the salary cap. Can you explain how that works and when are they required to get back under? Is it before they can sign a new player?
That is only allowed during the off-season. During the season you only have 7 days to get back under the cap otherwise you will be fined. The deadline to be back under the cap is March 15th.
@@numbersbehind March 15th? The offseason is just beginning then isn't it? Seems like the deadline would be around the same time final rosters are submitted.
you bash me or take me the jail if am wrong but the “offseason” is the beginning of the new season….the new league year as they call it. Kinda weird but teams have to be under cap by 4:00 pm est. once under the cap they can sign new players like draftees or free agents. Those contracts will count for that year cap and beyond. In addition all previous contracts will be using the new cap space. As for your say on shouldn’t it be once final roster cuts….smart idea but hey that’s the nfl for ya. 😂l
I would love to send this to the european football "fair play" salary cap calculators with teams signing players on 10 year contracts because the Dead Cap doesnt exist, just cash flow and "amortisation" over the life of the contract
What if a player is about to hit their expected incentive, but the team sits him the last game of the year so it can get credit for the next year's cap? Does the player have any recourse?
So around the 3:20 mark is what's wrong with the NFL salary cap, and essentially makes it a soft cap. In the NHL, the cap hit is AAV, end of story, teams can structure actual payout however they choose, but the cap hit cannot change once the deal is approved by the commissioner's office.
I think the dead cap space should account for positional injurys. You are far more likely to be injured as a running back, than a kicker. You could base this off historical injuries by position. Its not great to punish a position like running back as owners dont want to risk money and long term impact.
why the algorithm put this video on my timeline today, I have no idea. But I’m glad it did. I thought I had a pretty good understanding of how the cap worked and I was pretty good until the discussion on the dead cap. This video is probably the simplest explanation that could’ve been given and it still confused the hell out of me. Way too many moving parts.
On one hand you said NFL teams can cut players without paying a penny then you said because of dead cap they have to pay them millions of pounds, is the dead cap the guaranteed signing bonus money?
How would something like a career ending injury be dealt with from a cap perspective. Also do teams buy insurance against things like this. Say they decide to cut a player could they have taken out insurance to cover that eventuality in advance?
Teams can purchase injury insurance and receive credits towards the cap. But it needs to be detailed in the players contract. Players who are on injured reserve still count against the cap, however they don't count against the 53 man roster. Meaning you can replace him with a player from the practice squad or sign a free agent.
Median average envisions Atlanta as the par, but LA has a certain Pennsylvania breakup singer perform more in that new LA stadium than Atlanta. Regardless the cap is $250 with 24/32 generating less than $750 million first fruits. That is from CNBC valuation so it is not close to five times. The valuation is how much a billionaires pay to buy the whole team so not annually adjusted.
Video made my brain hurt and gave me a slight headache. Slick lawyers, agents and league officials trying to screw each other via incentives, bonuses and contract terminology.
Cops were unprofessional and abusive WTF That’s a whole bad bushel of apples with the Miami highway patrol! Can’t wait to see the audit the audit report on this traffic stop
These nfl contracts are incredibly one-sided in the teams favor. I'm surprised the players' union doesn't fight harder for guaranteed money for players.
Owners be like: “We want to sign player X and give them a signing bonus in their contract…… buuuuutttt…. If that player retires we want our money back! They can’t screw us out of our money!” Owners also be like: “We signed player X to a massive contract, now they’re playing like trash. We want to cut him and we aren’t paying them a penny more!” Seems fair……..
@@goblinstabba7105 If you view the NFL as one company and not 32 OK. But even then it would be one monopoly with total control over the labor market for football players. That would be something the federal government says they do not allow.
Question: is there a limit to how much dead cap space a team could have what if a team cut 5 players and had 60 million in dead cap is there any sort of bail out from the league ?
Why would any union agree to a CBA containing a system specifically designed to limit their salary? The baseball players rejected that nonsense 50 years ago. NFL players would be wise to do the same.
They wanted parity. Its why the NFL is so popular and MLB isnt. Who made it to the World Series? Two of the wealthiest clubs in the league. How many times have the Yankees appeared in the WS? Way too many. The problem with the NFL is that the owners receive 55% of revenues and players get 45%. If anything it should be 50/50 or reverse it. The players drive the league.
Also the baseball players had to go on strike 30 years ago to NOT have a hard salary cap in baseball. Football players would be giving up a LOT more by going on strike relative to baseball players.
It’s a 50/50 contract. Yes you do sign with a specific team and how that team manages their money and negotiate is how they effect things. But you are basically signing with the NFL with all the rules
This is pretty cool thank u for explaining this. After watching it makes me shake my head even more about GMs, you might as well not sign anyone for more than 2 years, give a little more guaranteed money so they play their hearts out, and most of the time by a players 3rd or 4th year they're beat up and hurt, the average NFL career is only 3 years anyway, so why would you complicate your salary cap trying to predict what a player will do 2,3,4 years from now when the majority of the time players don't fulfill an entire contract anyway. I see why they do it, but if your teams goal is to win a Superb Owl 🦉 then just like they say, they can manipulate the salary cap to get almost any player they want when the player is available.
The cap should be simpler. Contracts should be limited to three seasons. If you stopped the manipulation then you would see more one year deals. More player movement would mean teams at the bottom could come up quick. Teams at the top would not be able to load up on players then tank. Tanking should be eliminated in my opinión. They are punishing yeams like Miami for this with unfair referees but this also is a bad idea.
Players don't want one year deals. They know they have a little bit more job security with longer deals because how much dead cap would result from them being cut. That's why you see players throw a fit when they are designated as Franchise Players. Its a lot of money, but its only one year.
No way. They don't need outside funds. The players salaries are more than covered by the television deals alone. That means pretty much everything else, the owners keep. Tickets, concessions, jerseys sales...etc.
@@wilsontodd-ud9km Even without the salary cap, teams make enough money to not require outside funds. And where would these funds come from? What would these sources of outside funds require in return? People aren't going to give the teams money without expecting something back in return. Getting funds from outside sources is unnecessary and unwise. Why do you think that would be a good idea? I'm very curious what your thinking on this is.
@wilsontodd-ud9km No I haven't forgotten when Jones signed Sanders to the Cowboys. What does that have to do with outside funds. He was signed in 1995 which is the year after the salary cap was implemented. I don't care about the Yankees or Pepsi or Al Davis. People made a big deal about the Sanders' signing because it made him the highest paid defensive player in the league. It doesn't appear that you know what you are talking about so I have no more questions. Thanks.
This is a better explanation that video put out by NFL. Great job.
Word
Literally just sent this to our nfl chat saying this exact thing, preach
Todd Gurley biggest dead cap in NFL history. Russell Wilson Denver Broncos: hold my beer
Never really understood the : hold my beer thing?
@@Dougie1969 "Hold my beer and watch this."
DeShawn Watson: Am I a joke to you?
@@Rastebb Yes Watson you are a joke but not as much of one as the Brown for paying you that.
Wait til the Browns cut Deshaun Watson next year
The production of the video and the actual educational content were on point.
Excellent explanation thank you, I've been watching football most of my life and never knew what Franchise Tag meant, never bothered to look it up until now I'm watching the Giants Hard Knocks and they keep talking about Barkleys contract and Franchise Tag.
Very helpful and information in understanding the NFL salary cap and dead cap etc. Thanks for breaking it down really well.:-)
I literally thought this was a professional video by the nfl. You deserve a ton more publicity bc this is great stuff!
2024 and i’m just now seeing this. Great video. That mutumbo line is what gained you a subscriber 😂 that and this great info. Thanks!
RIP to Dekimbe M.
I am just watching this video and appreciate the references to the Legend...You definitely gave him his flowers....
Signing bonuses are not just guaranteed. They also give you money right now, which you can invest and make more money out of. Even if the last year of your contract was guaranteed, you would still want money upfront.
This a great video!
I needed those examples, but other videos wouldn’t give any.
this is the first video i’ve found by you and you’re a great youtuber bro, i wish i would’ve found you sooner and you shouldn’t stop uploading dawg
Good stuff, great detail deserves more views
On spotrac, it sometimes mentions potential "outs" in some contracts (like 2026 for russ Wilson's contract) - wondering what that means and how it relates to cap hit/dead cap for his contract?
Love the vids!
To my understanding it's the point in the contract where most or all of the guaranteed money has been paid. This lowers the dead cap hit significantly. I.E. cutting Daniel Jones this year would have meant also 70mil dead cap for the Giants. Waiting till next year means they will only take ~20mil.
Obviously teams can still elect to cut players earlier like the Wilson example shows.
Just got my subscription! I hope your channel grows! This was a great video
Idk dude, I feel like telling a pro football player that we're gonna put money on you NOT being able to do something might be pretty motivational lol, unless it's so unlikely the player knows it won't happen no matter how good they play. Like, "tell me I won't rush for 2200 yards this year!! Say I won't!!" lol and they go out saying they're gonna do just that all year.
I took it as motivating to sign the contract. Players generally don’t want incentive-laden contracts, even less so incentives they have a lower chance of meeting.
I know I'm a year late to this conversation but currently there are about half the league OVER the salary cap. Can you explain how that works and when are they required to get back under? Is it before they can sign a new player?
That is only allowed during the off-season. During the season you only have 7 days to get back under the cap otherwise you will be fined. The deadline to be back under the cap is March 15th.
@@numbersbehind March 15th? The offseason is just beginning then isn't it? Seems like the deadline would be around the same time final rosters are submitted.
you bash me or take me the jail if am wrong but the “offseason” is the beginning of the new season….the new league year as they call it. Kinda weird but teams have to be under cap by 4:00 pm est. once under the cap they can sign new players like draftees or free agents. Those contracts will count for that year cap and beyond. In addition all previous contracts will be using the new cap space. As for your say on shouldn’t it be once final roster cuts….smart idea but hey that’s the nfl for ya. 😂l
What website were you looking at to show everyone’s salary cap hits?
Good video content.
Very well done!!
great work man
just commenting to be nice and help the algorithm. great video. have a good day everyone!
How do teams go over the cap?
Just now watching this.
R I.P. Mutombo
this helped so much and i looked up some numbers
I would love to send this to the european football "fair play" salary cap calculators with teams signing players on 10 year contracts because the Dead Cap doesnt exist, just cash flow and "amortisation" over the life of the contract
I think promotion and relegation complicates things for European football. A closed league is why it was easier to implement financial rules
This was so good
Great video
Thanks for the support!
The Salary Cap, in 2024, is a shade over $255M
From the graphics to the explanation, this channel is underrated. Keep up the good work
Thanks!
What if a player is about to hit their expected incentive, but the team sits him the last game of the year so it can get credit for the next year's cap? Does the player have any recourse?
I don't think the LTBE and NLTBE bonuses are defined as such in contracts, just by the NFL for cap purposes.
So around the 3:20 mark is what's wrong with the NFL salary cap, and essentially makes it a soft cap. In the NHL, the cap hit is AAV, end of story, teams can structure actual payout however they choose, but the cap hit cannot change once the deal is approved by the commissioner's office.
Rest in peace to motumbo 1:12
Ok. And peace to Project Pat.
I think the dead cap space should account for positional injurys. You are far more likely to be injured as a running back, than a kicker. You could base this off historical injuries by position. Its not great to punish a position like running back as owners dont want to risk money and long term impact.
damn I see many of us watching after mutumbo news
What are the odds of that
It sounded fascinating but I couldn't take the background music. Can you produce versions without it?
why the algorithm put this video on my timeline today, I have no idea. But I’m glad it did. I thought I had a pretty good understanding of how the cap worked and I was pretty good until the discussion on the dead cap. This video is probably the simplest explanation that could’ve been given and it still confused the hell out of me. Way too many moving parts.
Needed this! Thanks!! Now I know how the money works!!!
This is honestly really helpful
Cash over cap if you've got the money you can spend way more than the cap
Great videos, what software do u use for your data visualizations and video charts?
Thanks! We use adobe illustrator and after effects for most of our graphics. We also use the programming language r and occasionally Tableau
On one hand you said NFL teams can cut players without paying a penny then you said because of dead cap they have to pay them millions of pounds, is the dead cap the guaranteed signing bonus money?
Exactly. Its the signing bonuses. Its very confusing.
How would something like a career ending injury be dealt with from a cap perspective. Also do teams buy insurance against things like this. Say they decide to cut a player could they have taken out insurance to cover that eventuality in advance?
Teams can purchase injury insurance and receive credits towards the cap. But it needs to be detailed in the players contract.
Players who are on injured reserve still count against the cap, however they don't count against the 53 man roster. Meaning you can replace him with a player from the practice squad or sign a free agent.
For me it’d be like reverse phycology. Like. I don’t think you can do it. And then I make sure to prove I can do it. For NLTBE.
3 Years ago.. xD i think there has been some changes regarding the dead cap listed teams
It’s such a quality video can’t believe it only has 3k views
Needed this lecture so i can debunk the cowboys sad excuse of why they never spend money on FA’s
We're a lightly PINK bar on your Adjusted Salary Cap bar chart!? Holy hell.... Pittsburgh is at least silver....
On one side, the cap is a good thing. But on the other side, it solely benefits owners. Owners can make five times what the year player cap is.
Median average envisions Atlanta as the par, but LA has a certain Pennsylvania breakup singer perform more in that new LA stadium than Atlanta. Regardless the cap is $250 with 24/32 generating less than $750 million first fruits. That is from CNBC valuation so it is not close to five times. The valuation is how much a billionaires pay to buy the whole team so not annually adjusted.
Now I just have to wait for a job opening
7:30 "$100k Bonus for no tantrums" yup, that bonus isn't getting paid out
Video made my brain hurt and gave me a slight headache. Slick lawyers, agents and league officials trying to screw each other via incentives, bonuses and contract terminology.
A blessing and a curse at the same time.
Cops were unprofessional and abusive
WTF
That’s a whole bad bushel of apples with the Miami highway patrol!
Can’t wait to see the audit the audit report on this traffic stop
These nfl contracts are incredibly one-sided in the teams favor. I'm surprised the players' union doesn't fight harder for guaranteed money for players.
Russell wilson just blew up rhe dead cap hit record
Why this beat go so hard
This is why you see massive amounts of money being (guaranteed)
This is as clear as mud. The creatures did a good job.
You never mentioned when a Contract is completly voided....
OBJ no tantrums bonus 😅
Antonio Brown | Dead Cap Space for Tampa - The Raiders - Steelers
Owners be like:
“We want to sign player X and give them a signing bonus in their contract…… buuuuutttt…. If that player retires we want our money back! They can’t screw us out of our money!”
Owners also be like:
“We signed player X to a massive contract, now they’re playing like trash. We want to cut him and we aren’t paying them a penny more!”
Seems fair……..
I don't understand how it isn't illegal price fixing of the labor market.
Companies are allowed to determine the salary of their workers. All the teams are in the nfl
@@goblinstabba7105 If you view the NFL as one company and not 32 OK. But even then it would be one monopoly with total control over the labor market for football players. That would be something the federal government says they do not allow.
RIP Dikembe
Question: is there a limit to how much dead cap space a team could have what if a team cut 5 players and had 60 million in dead cap is there any sort of bail out from the league ?
All money paid to players must eventually hit the salary cap. This means that there can’t be any relief of dead cap
Why would any union agree to a CBA containing a system specifically designed to limit their salary?
The baseball players rejected that nonsense 50 years ago. NFL players would be wise to do the same.
They wanted parity. Its why the NFL is so popular and MLB isnt. Who made it to the World Series? Two of the wealthiest clubs in the league. How many times have the Yankees appeared in the WS? Way too many.
The problem with the NFL is that the owners receive 55% of revenues and players get 45%. If anything it should be 50/50 or reverse it. The players drive the league.
Also the baseball players had to go on strike 30 years ago to NOT have a hard salary cap in baseball. Football players would be giving up a LOT more by going on strike relative to baseball players.
send this to jerry jones
rip 1:06
Russel Wilson enters the chat..
I’m still soo lost
Yeah, should have used simpler numbers like 1, 2, 3, 4
Distinction between cash spend and salary cap got lost about 2/3 the way through.
Interesting video but the music selection, it's no good. It's like being stuck at a terrible disco.
Rip mutumbo!
It’s a 50/50 contract. Yes you do sign with a specific team and how that team manages their money and negotiate is how they effect things. But you are basically signing with the NFL with all the rules
Whose here after Daniel Jones got released
No one cares
Rip mutumbo
This is pretty cool thank u for explaining this. After watching it makes me shake my head even more about GMs, you might as well not sign anyone for more than 2 years, give a little more guaranteed money so they play their hearts out, and most of the time by a players 3rd or 4th year they're beat up and hurt, the average NFL career is only 3 years anyway, so why would you complicate your salary cap trying to predict what a player will do 2,3,4 years from now when the majority of the time players don't fulfill an entire contract anyway. I see why they do it, but if your teams goal is to win a Superb Owl 🦉 then just like they say, they can manipulate the salary cap to get almost any player they want when the player is available.
yeah...turns out the texans are all the better for that cap hit 4 years later
I’m lost
100k for o Tantrums
lol
theyre still way overpaid
NFL teams probably have the best accountants
in 2022 its set at 208,000,000 $
The cap should be simpler. Contracts should be limited to three seasons. If you stopped the manipulation then you would see more one year deals. More player movement would mean teams at the bottom could come up quick. Teams at the top would not be able to load up on players then tank. Tanking should be eliminated in my opinión. They are punishing yeams like Miami for this with unfair referees but this also is a bad idea.
Players don't want one year deals. They know they have a little bit more job security with longer deals because how much dead cap would result from them being cut. That's why you see players throw a fit when they are designated as Franchise Players. Its a lot of money, but its only one year.
Now it goes white.
Neat
Get. Rid. Of. The. Cap. Allow. Team s. To. Get. Outside. Funds.
No way. They don't need outside funds. The players salaries are more than covered by the television deals alone. That means pretty much everything else, the owners keep. Tickets, concessions, jerseys sales...etc.
Get. Out. Side. Funds. Anyway.
@@wilsontodd-ud9km Even without the salary cap, teams make enough money to not require outside funds. And where would these funds come from? What would these sources of outside funds require in return? People aren't going to give the teams money without expecting something back in return.
Getting funds from outside sources is unnecessary and unwise. Why do you think that would be a good idea? I'm very curious what your thinking on this is.
Do. You. Remember. Jerry. Jones. Got. Deon. Sanders. Deal. Went. Everyone. Made. A. Big. Deal. About. It. Went. Jerry. Got. That. Pespi. Deal. And. The. New. York. Yankees. Was. Behind. Jerry. Jones. And. Al. Davis. For. It. As. Well. Or. Have. You. Forgot. About. That.
@wilsontodd-ud9km No I haven't forgotten when Jones signed Sanders to the Cowboys. What does that have to do with outside funds. He was signed in 1995 which is the year after the salary cap was implemented. I don't care about the Yankees or Pepsi or Al Davis.
People made a big deal about the Sanders' signing because it made him the highest paid defensive player in the league.
It doesn't appear that you know what you are talking about so I have no more questions. Thanks.
Amazing video