Salary Cap Math - The Cherilus Contract and it's Total Impact

[ztboiler]

Because the salary cap is a combined cash and accrual concept with rollover savings from year to year, fans must resist the tendency to look only at the current reported numbers to understand what is and isn't a good move by a GM.

 

In the case of Cheilus - after solid corrections of the media misTweetings by Superman - we know that the Colts save $4M on this year's cap number and $4.1M on next year's due to the post June 1 designation - incurring total dead cap hit of $8.7M.  It sounds like a confusing mix of gains and losses in cap money.

 

In reality, all of that is just accounting procedure.  What the Colt's actually paid Cherilus was $14.5M in a 2013 signing bonus and base salaries of $1M in 2013 and 2014 for a total of $16.5M over 2 yrs or $8.25M per year.

 

Originally, the Cherilus contract was structured to allow for an easy release after 3 years at an avg. of $6.83M per year.  Accelerating the cut to yesterday increased our annual cost to $8.25M, which is certainly above the market rate for services received, but hardly a financial setback of any significance, and ends up shining some light on the actual risk/reward scenario that Grigson signed up for with Cherilus when he went to pick a starting right tackle, with known injury concerns, at the free agency store.  Yes, he paid full retail and a little more - we can criticize that fairly.  In year 1 it worked out, and in year 2 it didn't - but amidst any criticism we need some balance that this was far from a financial disaster - we merely paid a premium for 2 years at a position where you have to pay a premium to go out and sign a starter.

[Grigs build the lines plz.]

I honestly wish Grigs would stop rolling the dice on players with a history of injury,

It rarely pans out.

[ColtsBlueFL]

It boils down to Grigson getting out of it at the best time.  A 5 year 35 million deal turns in to essentially a 2 year, 16 million dollar deal.  Already paid and he gone. Only lingering effect to the Colts is 2.9 million dollar dead money cap hit this year, and the accelerated 5.8 million dead money the next.  That's it.

[Superman]

It boils down to Grigson getting out of it at the best time.  A 5 year 35 million deal turns in to essentially a 2 year, 16 million dollar deal.  Already paid and he gone. Only lingering effect to the Colts is 2.9 million dollar dead money cap hit this year, and the accelerated 5.8 million dead money the next.  That's it.

 

Yup. The long and short of it is the staff determined it wasn't worth guaranteeing him another $4m. I agree with that assessment. No reason to give him another $4m just so you can say 'we paid him $6.83m over three years,' as if that's better than less total money over a shorter period of time, regardless of the yearly average. With cap rollover, the cap is essentially total volume and not just a year to year number, so total money is more important than yearly average. 

[csmopar]

yeah, im not surprised, matter of fact i expected it done sooner.  But now I await for Thomas. I still think he's out, this year.

 

Side note, what ever came of TRich's cap hit ? I know he was appealing it and trying to get his money, but never heard what came of it

[Valpo2004]

yeah, im not surprised, matter of fact i expected it done sooner.  But now I await for Thomas. I still think he's out, this year.

 

Side note, what ever came of TRich's cap hit ? I know he was appealing it and trying to get his money, but never heard what came of it

 

I just googled it and all I can find is several articles saying that T-Rich filed a grievance.  (Which means he took it up with the players union and the union decides if it wants to fight it or not.)

 

No updates since then so it's quite possible the union declined to fight this battle.  

[csmopar]

I just googled it and all I can find is several articles saying that T-Rich filed a grievance.  (Which means he took it up with the players union and the union decides if it wants to fight it or not.)

 

No updates since then so it's quite possible the union declined to fight this battle.  

 

Possibly 

[CR91]

I dont mean to derail this thread, but does anyone know if we got out of the 4 mil for trich

[Valpo2004]

Just an FYI, overthecap has us now at 13.1 M in cap space for this year with 88 players on the roster after Cherilus's release.

[Superman]

yeah, im not surprised, matter of fact i expected it done sooner.  But now I await for Thomas. I still think he's out, this year.

 

Side note, what ever came of TRich's cap hit ? I know he was appealing it and trying to get his money, but never heard what came of it

 

 

I just googled it and all I can find is several articles saying that T-Rich filed a grievance.  (Which means he took it up with the players union and the union decides if it wants to fight it or not.)

 

No updates since then so it's quite possible the union declined to fight this battle.  

 

^^^

 

I dont mean to derail this thread, but does anyone know if we got out of the 4 mil for trich