cpamm
Member
retired business executive interested in cap charges compared to contract values
Posts: 4
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Post by cpamm on Oct 16, 2024 4:01:37 GMT -7
This is my first thread. I am a retired Business executive fascinated by the difference between cap charges and player contract values. The value of Charger player contracts went from 5th of 32 clubs in 2023 ($270M APY) to 29th for the 2024 season ($205M APY). While the average NFL club's contract value increased by 7%, the Chargers declined by 24% or $65M, the most significant decline of all the teams in the NFL. I meticulously analyzed the top 53 player cap-charged contracts (active and inactive) and compared their value to the contract value for all 32 NFL clubs. The results may surprise you. It's a clear case of the highest player contract values not necessarily translating to on-field success, as seen with the Cleveland Browns. The Brown's contracts were $311M APY, the highest in the NFL. The Browns have seventeen players with contracts = > $5M. The Chargers have seven. The Rams have the lowest contract value at $200M, while the average NFL club has $245M in player contracts. The Lions had the most significant increase in contract value ($75M APY), moving to 8th place out of 32 clubs. In 2023, they were 28th out of 32 clubs. My following thread will delve into the cap charges for the contracts, ranging from a low of 59% (Eagles) to a high of 104% (Rams). The Chargers were 94% (25th of 32 clubs). I have prepared two PDF summary files that will provide a comprehensive overview of the data we're discussing. File 1 shows the total APY contract value by club, and File 2 shows the total APY contract value by player for the Chargers File 1 - Club Contract Value.pdf (22.2 KB) File 2 - Charger Contract Values -2024.pdf (37.38 KB))
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Post by afboltfan on Oct 16, 2024 6:45:05 GMT -7
It is fascinating and goes to show how teams will break out the wallet but then have no power to demand accountability and a return on the investment.
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Post by lazylightning on Oct 16, 2024 7:05:41 GMT -7
This is my first thread. I am a retired Business executive fascinated by the difference between cap charges and player contract values. The value of Charger player contracts went from 5th of 32 clubs in 2023 ($270M APY) to 29th for the 2024 season ($205M APY). While the average NFL club's contract value increased by 7%, the Chargers declined by 24% or $65M, the most significant decline of all the teams in the NFL. I meticulously analyzed the top 53 player cap-charged contracts (active and inactive) and compared their value to the contract value for all 32 NFL clubs. The results may surprise you. It's a clear case of the highest player contract values not necessarily translating to on-field success, as seen with the Cleveland Browns. The Brown's contracts were $311M APY, the highest in the NFL. The Browns have seventeen players with contracts = > $5M. The Chargers have seven. View AttachmentView Attachment) Hi and welcome. You can make a case study on Joey Bosa. He is a poster child for ' player contract not equaling on field success' (due to injuries).
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cpamm
Member
retired business executive interested in cap charges compared to contract values
Posts: 4
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Post by cpamm on Oct 17, 2024 3:28:44 GMT -7
Joey Bosa- $20M APY contract - Cap charge 129% or $26M.
The Charger total cap charge / value of their contracts = 94%. Last year - Charger % was 75%. NFL average in 2024 usb 82%.
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Post by ltocbolts on Oct 25, 2024 0:54:57 GMT -7
Joey Bosa- $20M APY contract - Cap charge 129% or $26M. The Charger total cap charge / value of their contracts = 94%. Last year - Charger % was 75%. NFL average in 2024 usb 82%. Dear Mr. Agent, Might you please start with this basic: WHY is the contract value not the same as the cap hit? I would assume that signing bonuses and the like change it yearly. But if that is the case, can uou release the results of your meticulous analysis looking forward 3 years? Thanks
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cpamm
Member
retired business executive interested in cap charges compared to contract values
Posts: 4
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Post by cpamm on Oct 25, 2024 6:47:12 GMT -7
The cap hit is based on how the contract is written.
Example- the Eagles signed a player to a one year contract (Fletcher Cox), and he received $14M in cash that season. what was the cap charge? It was $4M.
The Eagles signing Hurts to an extension. The contract was worth $43 million APY- the cap hit was $6M in 2023.
Justin Herbert- extension signed in 2023- Contract value $42.3M- 2024 cap charge is $19.3M.
The Chargers have gone from 75% cap charge to contract value in 2023 to 94% in 2024.
Clubs can use the cap rules aggressively, like the Eagles. In 2024, their cap charge is only 59% of the contract value. Allowing clubs to assign cap to void years on player contracts shows how ridiculous the rules have become.
I am not an agent - I am retired with a lot of time on my hands.
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Post by amped on Oct 25, 2024 8:04:19 GMT -7
The cap hit is based on how the contract is written. Example- the Eagles signed a player to a one year contract (Fletcher Cox), and he received $14M in cash that season. what was the cap charge? It was $4M. The Eagles signing Hurts to an extension. The contract was worth $43 million APY- the cap hit was $6M in 2023. Justin Herbert- extension signed in 2023- Contract value $42.3M- 2024 cap charge is $19.3M. The Chargers have gone from 75% cap charge to contract value in 2023 to 94% in 2024. Clubs can use the cap rules aggressively, like the Eagles. In 2024, their cap charge is only 59% of the contract value. Allowing clubs to assign cap to void years on player contracts shows how ridiculous the rules have become. I am not an agent - I am retired with a lot of time on my hands. are you saying we could "work the system" better?
Like move 50 million of herbs annual pay to a bonus to free up cap space?
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Post by chargerfreak on Oct 25, 2024 9:01:20 GMT -7
The cap hit is based on how the contract is written. Example- the Eagles signed a player to a one year contract (Fletcher Cox), and he received $14M in cash that season. what was the cap charge? It was $4M. The Eagles signing Hurts to an extension. The contract was worth $43 million APY- the cap hit was $6M in 2023. Justin Herbert- extension signed in 2023- Contract value $42.3M- 2024 cap charge is $19.3M. The Chargers have gone from 75% cap charge to contract value in 2023 to 94% in 2024. Clubs can use the cap rules aggressively, like the Eagles. In 2024, their cap charge is only 59% of the contract value. Allowing clubs to assign cap to void years on player contracts shows how ridiculous the rules have become. I am not an agent - I am retired with a lot of time on my hands. are you saying we could "work the system" better?
Like move 50 million of herbs annual pay to a bonus to free up cap space?
Is that pronounced "erbs" like Sage, or Herbs like Herbs.
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Post by amped on Oct 25, 2024 10:16:16 GMT -7
are you saying we could "work the system" better?
Like move 50 million of herbs annual pay to a bonus to free up cap space?
Is that pronounced "erbs" like Sage, or Herbs like Herbs. it's a hard H, rock hard
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Post by chargerfreak on Oct 25, 2024 11:22:33 GMT -7
Is that pronounced "erbs" like Sage, or Herbs like Herbs. it's a hard H, rock hard Post reported for depravity.
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cpamm
Member
retired business executive interested in cap charges compared to contract values
Posts: 4
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Post by cpamm on Oct 25, 2024 14:52:10 GMT -7
are you saying we could "work the system" better?
Like move 50 million of herbs annual pay to a bonus to free up cap space?
Is that pronounced "erbs" like Sage, or Herbs like Herbs. Yes - well said. The fear is an increased dead-cap. Eagles have gone six seasons being very aggressive without a salary cap correction. Eagle higher dead-cap more than offset by higher contract value. The four teams in 2024 with the highest contract value also have the most cap assigned to void yeas of contracts.
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