BakoSaint

But next year we will restructure their contracts so the dead cap $ point to them being casualties 2-3 years following, and so on, forever, until either they or Loomis and Harley die. We won't ever make a transaction that costs more than it gains on the immediate years cap, even if its a big savings long term, and this gives players the option to agree to resign for prorated money with lots of void years forever, so that the new prorated money makes it cheaper to keep them the next year, and so on. Everyone's base salary is $1 million and everyone's dead cap hit is $10 million plus.

SmashMouth

True... we carried Brees' dead cap for a couple of years. It only works if the cap continues to grow. If it shrinks as it did during the covid year, it blows up. It can't go up forever, can it?

AsylumGuido

It will absolutely continue to grow. With the current broadcast contracts in place it is guaranteed to continue to grow annually for at least ten years, the term of those contracts. And then there will be a new collection of bigger contracts with newer global markets and more platforms to carry the product. The only thing that could prevent it even temporarily would be something like another pandemic that happens, what, once or twice every century? And even that was just a single year hiccup that very team in the league was forced to manage.

Loomis and company decided on this accounting method a decade and a half ago. Anyone that knows anything about cost/management accounting knows that accounting approaches differ and each has their own unique strengths and weaknesses. The one thing they all have in common is that to be successful one MUST be consistent in its application. To take full advantage of the ever growing salary cap the approach being used by Loomis, and a quickly growing number of other franchises, must be used across the board on all contracts. Does it have it drawbacks at times? Sure. Every method does, but this method maximizes the value of the cap as a whole and has shown the ability to keep a team competitive from year to year.

I cannot foresee a scenario where this approach changes short of the death of Gayle Benson and given her current vitality I doubt that's going to be anytime within the next 15 to twenty years. And chances are it will still continue as it has proven to be the new method of choice across the league for obvious reasons.

“The pessimist sees difficulty in every opportunity. The optimist sees the opportunity in every difficulty.” — Winston Churchill

AsylumGuido

This here ...