Broncos sign DeMarcus Ware

[JimLeavy59]

 

[Glenbino]

Muahahahahahahaha

Sent from my HTC6500LVW using Tapatalk

 

[Aso]

Finally Jerry Jones shitty cap management caught up with him. Cowboys gonna be shit in 2014.

 

[Cornelius]

Can't wait til it catches up with Elway.

 

[Glenbino]

Can't wait til it catches up with Elway.

We'll be in cap hell for one, maybe two seasons.

The window is now.

Sent from my HTC6500LVW using Tapatalk

 

[Maynard]

the seahawks agree

 

[Glenbino]

http://www.itsalloverfatman.com/broncos/entry/you-got-served-day-1-of-free-agency

From that article...

Finally, I wanted to address a stupidity that I saw throughout the evening last night. The Broncos aren't going all in to win now. They aren't going to be in salary cap hell when Brock Osweiler takes over. They aren't mortgaging the future, or any other damn thing. Because of the way they manage the salary cap, the Broncos are able to make moves for the present without detracting from the future.

When I used to work for one of my past companies (a very large and well-known one), we were what you'd call a slow payer of accounts payable. Our terms were Net 55, which meant that, as far as we told our vendors, we'd pay them after 55 days. In reality, though, if that 55th*day happened to fall during the last six*weeks of any quarter, they weren’t getting paid until the first day of the next quarter.

That may have been hard to follow, so let me try to simplify it. Let’s say you sell that company some widgets on July 1, and you send them an invoice for it. Fifty-five days after July 1*is August 25. The midpoint of the third quarter was August 15, though, so my company is prohibiting any payments until October 1, regardless of how angry or rude the vendors get. That means the vendor doesn’t get paid for three months, all so that my publicly traded company could report a strong cash balance to Wall Street as of September 30.

A company only benefits once from playing cash games like that once, and then they have to keep up the behavior forever, so as not to report a lower cash balance in some future quarter. In the Wall Street world, if you report lower cash than expected, the stock price tanks, and the CEO gets canned. You can't exit the stretched-payables cycle without that kind of pain.

You borrowed against a future quarter’s cash once, so you have to keep doing it, and keep pissing off your vendors and causing the employees who have to deal with those vendors pain. In my following jobs, I’ve successfully advocated against those kinds of cash game tactics, because it’s not ultimately worth the ongoing cost.

Most NFL teams do this same sort of thing, by paying out huge signing bonuses. When they do, cash is paid out now, but it doesn’t hit the salary cap until later. Once you do that once, you’re always in cap trouble as the cap charges for prorated bonuses hit (for cash paid in the past), so you’re essentially forced to keep doing it.

When you’re in cap trouble, you just “restructure” your best players. That means that you convert some salary (which all hits the cap in the current year) to a bonus (which hits over a number of years). You’re robbing Peter to pay Paul. *Like with my company, the benefit came once, when you paid players $25 or $30 million more in cash than the cap theoretically allowed. *You either did or didn't win the Super Bowl that year, but you entered a cycle that isn't exited without some serious*pain.

Because the Broncos are disciplined enough not to lay out these big bonuses, they don’t have to sacrifice the future to pay for the present. When a player stops performing well, the Broncos can cut him, and face little or*no cap consequences after doing so. That’s how you can play for both the short- and long-term at the same time.

That’s all I’ve got for today, friends. Let’s see what happens in the next few days, and I’ll get back with you.

John Elway > The Salary Cap

Sent from my HTC6500LVW using Tapatalk

 

[Maynard]

quoting its all over fat man for the lulz

 

[Glenbino]

quoting its all over fat man for the lulz

Attacking the source instead of the information FTL.

With Welker coming off the books plus a possible Manning retirement/re-structure in the next two years there will be plenty of money to play with.

Sent from my HTC6500LVW using Tapatalk

 

[ThomasTomasz]

That is how the Redskins avoided cap hell despite all of their FA signings last decade, it certainly works and allowed the Redskins to sign players and also re-sign their own. They just couldn't get the on-field product right and used FA to build the team, not supplement a roster developed through the draft.

The Broncos are certainly doing it correctly right now, but I definitely think there needs to be something done to prevent this in a future CBA.

 

[Cornelius]

Yes, remember the Bruce Smith, Brad Johnson, Deion Sanders days? I think I went to a Lions game where they beat that shithole Redskins team.