Monday, April 29, 2013

Packer Education - Explaining "Dead Money"

OK, now that the draft is over it is time to study the salary cap!  I found this great article on "Dead Money"!

Here is the website - Explaining Salary Cap Dead Money

So, here I go:

Signing Bonus - When a player receives a signing bonus, whether a new contract or extension, that money is paid out immediately to the player.  That money is prorated over the remaining years of the contract, but it cannot be prorated over more than 5 years!

Example - player signs 3 year contract, signing bonus $3 million.  That is $1 million to the salary cap.  Let's say the base salary is $465,000, cap charge would be $1,465,000.

If player would make $555,000 in year 2, that would be $1,555,000 salary cap.  But, if cut before June 1st,  team not responsible for $555,000, but is responsible for remaining salary bonus of $2 million that year salary cap.  If cut after June 1, salary cap would be $1 million that year & $1 million the next year.

That is one example, the article has a few more examples.

Also, found an up to date website on the current salaries at:
Green Bay Salaries

Does a nice job of looking at the entire team!  Have a look!


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