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this is a discussion within the Saints Community Forum; Originally Posted by gosaints1 From Andrew Brandt: “Dead money is cap accounting for players no longer on a team’s roster, “dead weight” that hamstrings teams from signing “live” players. We have now seen—within the last month—the two largest dead-money charges ...
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Re: Taysom Hill creates $7.75 million in cap space with special accounting restructuring
Originally Posted by gosaints1
You can look at it as "dead weight", if you wish, but it is definitely accounting for services already rendered in the form of signing bonuses and converted roster bonuses. These bonuses are not pay to play. They are pay to be on the roster at the time of payment. Pay to play is salary and salary is not "dead weight/dead money" because it not guaranteed.![]()
Dead money is simply cap used in a prior period. It is not wasted cap. And given the fact that the cap will continue to rise annually (COVID-19 2021 is the lone exception), anything pushed to a future period signifies a lower and lower percentage of the total cap the further out it is pushed. It is perfectly sound cost accounting management. You get more bang for your buck than with same period accounting. It is the same reason why businesses borrow money for operations, as opposed to using cash on hand, in a revenue growth environment where the revenue grows at a faster pace than the interest on the borrowed funds. |
“The pessimist sees difficulty in every opportunity. The optimist sees the opportunity in every difficulty.” — Winston Churchill
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