eraser 722 Posted February 6, 2017 Share Posted February 6, 2017 http://overthecap.com/explaining-the-june-1st-designation/ Explaining the June 1st Designation Posted on February 21, 2013by Jason Fitzgerald One of the questions I get a lot deals with what a “post June 1” cut is and how designating someone a June 1 cut helps my team. So lets talk a bit about that today. What we are talking about here deals strictly with the acceleration of prorated bonus money onto the current years salary cap. The NFL essentially breaks up its salary cap accounting for bonuses into two periods with June 1 being the trigger date. When a player is removed from a players roster prior to June 1st all his remaining unamortized bonus money immediately accelerates onto the salary cap. To illustrate this we see how the Kansas City Chiefs gave Steve Breaston a $5 million dollar signing bonus in 2011, which was accounted as $1 million in yearly expenses over the course of his 5 year contract. When he was released just the other day he had only completed 2 years of his 5 year contract meaning the Chiefs salary cap had only accounted for $2 million of the $5 million paid in 2011. The balance of $3 million dollars immediately accelerates onto the Chiefs 2013 salary cap. After June 1 the NFL changes the way the acceleration works. After June 1st only the current years expense remains on the books after the player is released. The balance accelerates onto the following years salary cap. So in Breastons case had the Chiefs waited until June 1st to release him his salary cap charge in 2013 would have been $1 million and in 2014 he still would be on the books at $2 million dollars. This rule is really another way in which the league holds tremendous power over the players. In some cases the acceleration of bonus money could throw a teams salary cap into chaos, if higher than the players current cap charge as an active player. Since teams need to remain under the cap at all times once the League Year begins the potential of the acceleration onto the current years cap would prevent a players release and allow them to continue earning their salary for the year. Instead they are thrust into a pool of summertime free agents when most teams are strapped for cap space and have made many of the decisions about their roster. I think where many people get confused, though, is when they hear that “player x” could be designated a June 1 cut and immediately jump to conclusions that it means a spending spree in March. The league allows each team to designate up to two players per year as a June 1 cut for cap purposes prior to June 1. It’s the one concession that was given to the players as it allows a player to be cut in March and have time to explore free agency but have his cap hit spread out over two seasons, thus creating more cap space in the current year. The issue though is the mechanism by which this works. When you designate someone as a June 1 cut the player and his current contract remain on the books until June 1. Going back to the Breaston example has he been designated a June 1 cut his cap charge today would not be $1 million with $2 million on the books in 2014. His cap charge would be $5 million dollars, the same cap charge as if they never cut him at all. When June 1st hits his cap then moves down to $1 million and the other $2 million accelerate into the 2014 season. By that point in time free agency is finished and the extra cap room does not do the team much good. They would have been in a far better cap position during the important time of free agency by releasing Breaston outright as the Chiefs did. Link to comment Share on other sites More sharing options...
eraser 722 Posted February 6, 2017 Author Share Posted February 6, 2017 The Chiefs have $4,153,573 cap space in 2017, but Clark Hunt says he wants to sign both Poe, and Berry. If they do, the Chiefs will need to make room. The Chiefs are also projected to have $31,648,109 cap space for 2018. I am not suggesting these potential moves. I am only using this to show how the Chiefs may affect their own cap by cutting, trading, or doing a June 1 cut. Of course the Chiefs could also extend or restructure contracts. However, that would be far too confusing for this format. Link to comment Share on other sites More sharing options...
eraser 722 Posted February 6, 2017 Author Share Posted February 6, 2017 1. Alex Smith Cut or Trade Savings 2017 $9.16 M 2018 $20.6 M June 1 Cut Savings 2017 $12.76 M 2018 $17.0 M Link to comment Share on other sites More sharing options...
eraser 722 Posted February 6, 2017 Author Share Posted February 6, 2017 2. Jeremy Maclin Cut or Trade Savings 2017 $4.66 M 2018 $13.4 M June 1 Cut Savings 2017 $19.46 M 2018 $8.6 M Link to comment Share on other sites More sharing options...
eraser 722 Posted February 6, 2017 Author Share Posted February 6, 2017 3. Nick Foles Cut or Trade Savings 2017 $10.21M 2018 $0.00 M June 1 Cut Savings Cannot, because he has a one year contract Link to comment Share on other sites More sharing options...
eraser 722 Posted February 6, 2017 Author Share Posted February 6, 2017 4. Derrick Johnson Cut Savings 2017 $1.5225 M 2018 $9.750 M Trade Savings 2017 $3.5225 M 2018 $9.750 M June 1 Cut Savings 2017 $3.2725 M 2018 $8 M Link to comment Share on other sites More sharing options...
eraser 722 Posted February 6, 2017 Author Share Posted February 6, 2017 5. Jaye Howard Cut or Trade Savings 2017 $3.335 M 2018 $0M June 1 Cut Savings Cannot, because he has a one year contract Link to comment Share on other sites More sharing options...
eraser 722 Posted February 6, 2017 Author Share Posted February 6, 2017 6. Jamaal Charles Cut or Trade Savings 2017 $5.6475 M 2018 $0 M June 1 Cut Savings Cannot, because he has a one year contract Link to comment Share on other sites More sharing options...
eraser 722 Posted February 6, 2017 Author Share Posted February 6, 2017 7. Jah Reid Cut or Trade Savings 2017 $1.37875 M 2018 $3.975 M June 1 Cut Savings 2017 $2.15375 M 2018 $3.2 M Link to comment Share on other sites More sharing options...
eraser 722 Posted February 6, 2017 Author Share Posted February 6, 2017 8. Dustin Colquitt Cut or Trade Savings 2017 $3.56 M 2018 $0 M June 1 Cut Savings Cannot, because he has a one year contract Link to comment Share on other sites More sharing options...
eraser 722 Posted February 6, 2017 Author Share Posted February 6, 2017 9. Dee Ford Cut or Trade Savings 2017 $0.9225 M 2018 $0 M June 1 Cut Savings Cannot, because he has a one year contract Link to comment Share on other sites More sharing options...
eraser 722 Posted February 6, 2017 Author Share Posted February 6, 2017 10. Anthony Sherman Cut or Trade Savings 2017 $1.26 M 2018 $0.00 M June 1 Cut Savings Cannot, because he has a one year contract Link to comment Share on other sites More sharing options...
eraser 722 Posted February 6, 2017 Author Share Posted February 6, 2017 These numbers may not contain all incentives, and are estimates only. Some players, who are on initial or rookie contracts will become RFA after this year. One year contract is indicated to mean it is either a one year contract or it is in the final year of a multiple year contract I listed the top ten only. Players, such as Tyler Bray on down, save very little toward the cap space ($679 K for Bray). Since their contracts will be replaced by other players, they really have very little affect on the overall cap. They may be cut, traded, or cut after June 1, but their contracts are not large enough to warrant any detailed discussion. Link to comment Share on other sites More sharing options...
WichitaZRide 321 Posted February 6, 2017 Share Posted February 6, 2017 Trade both Alex and Foles for whatever they can get. restructure/extend Charles. That will put cap around 25+ million Sign Poe and Berry. Trade up for Deshaun Watson. (using whatever picks we need to give up, including alex and foles trade picks) Doing all this would give us enough after signing Watson to pick up a couple Solid FA pieces to fill in for lost picks. Pray the learning curve isn't much with Watson...lol Link to comment Share on other sites More sharing options...
azchief21 5,278 Posted February 6, 2017 Share Posted February 6, 2017 These numbers may not contain all incentives, and are estimates only. Some players, who are on initial or rookie contracts will become RFA after this year. One year contract is indicated to mean it is either a one year contract or it is in the final year of a multiple year contract I listed the top ten only. Players, such as Tyler Bray on down, save very little toward the cap space ($679 K for Bray). Since their contracts will be replaced by other players, they really have very little affect on the overall cap. They may be cut, traded, or cut after June 1, but their contracts are not large enough to warrant any detailed discussion. Nice work, E Link to comment Share on other sites More sharing options...
DieHard 2,061 Posted February 6, 2017 Share Posted February 6, 2017 Just say we want to trade up to 10 to snag a QB. According to the charts, what would that take? Most of the draft wouldn't it? Link to comment Share on other sites More sharing options...
eraser 722 Posted February 7, 2017 Author Share Posted February 7, 2017 Just say we want to trade up to 10 to snag a QB. According to the charts, what would that take? Most of the draft wouldn't it? This is a bit dated. The middle to late first round, and mid second round picks are probably worth more. However, this is the general guide people start from in determining value for each pick in the draft http://walterfootball.com/draftchart.php The Chiefs have the 27th pick, and ten spots up would be the 17th held by Washington 950 - 680 = 270 270 points is close to the same value as their second round pick. So, the Chiefs could move up that far, if they found a willing suitor, but it would require their 2nd round selection Link to comment Share on other sites More sharing options...
DieHard 2,061 Posted February 7, 2017 Share Posted February 7, 2017 Thanks E. I have a feeling they would have to go higher. There are a lot of teams that could use a QB in 1-16. Link to comment Share on other sites More sharing options...
NChiefsCorner 496 Posted February 7, 2017 Share Posted February 7, 2017 Pick #10 = 1300 and pick #27 = 680, so 1300- 680 = 620 points Source: The Huddle Report. Link to comment Share on other sites More sharing options...
West 6,714 Posted February 7, 2017 Share Posted February 7, 2017 -maybe one of those teams would entertain trading for Foles or Smith and swap picks with KC? If KC keeps either one of their QB's it will serve as a "give the new guy time to develop" safety net. 12-4 last season, not 4-12. w Link to comment Share on other sites More sharing options...
oldtimer 8,686 Posted February 7, 2017 Share Posted February 7, 2017 rumors are still J-E-T-S want Alex. Seems to be a good fit and he'd have weapons..probably a lateral move for him being they have to play the Pats twice Link to comment Share on other sites More sharing options...
liquidfriend 1,151 Posted February 8, 2017 Share Posted February 8, 2017 I still think the Bears will have interest. Link to comment Share on other sites More sharing options...
eraser 722 Posted February 8, 2017 Author Share Posted February 8, 2017 Pick #10 = 1300 and pick #27 = 680, so 1300- 680 = 620 points Source: The Huddle Report. That is why it will be unlikely the Chiefs will make such a deal. This is hard to do. It will take two #1 picks, or their #1, and #2 this year, plus an additional pick in the future. The other thing to mention is the only player most agree is ready for the NFL is the kid from NC, and he is likely to go in the top five. There are mixed ideas about all these guys. The closest player I feel resembles a future QB with top ten potential is Mahomes. Mahomes may drop to the second round, because he is project. Link to comment Share on other sites More sharing options...
liquidfriend 1,151 Posted February 9, 2017 Share Posted February 9, 2017 It would take the Chiefs 1st and 2nd round choices this year and next to move up that far. No way Dorsey even considers it. Link to comment Share on other sites More sharing options...
kccrow 529 Posted February 9, 2017 Share Posted February 9, 2017 4. Derrick Johnson Cut Savings 2017 $1.5225 M 2018 $9.750 M Trade Savings 2017 $3.5225 M 2018 $9.750 M June 1 Cut Savings 2017 $3.2725 M 2018 $8 M This appears slightly off. Chiefs save 2 million cutting Johnson before 3/11/17. If they don't, then his salary becomes fully guaranteed, which would drop his savings down to 1.25 m Trade savings are generally in-line with cut savings, but in Johnson's case he'd save 4 M because of the 2 M guaranteed salary. Link to comment Share on other sites More sharing options...
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