Thread: Chiefs Pioli says Chiefs can turn around after 0-2 start
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Old 09-18-2012, 12:49 PM   #3
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Quote:
Originally Posted by BlackBob View Post
Thanks... Hopefully there will be some in depth articles about this going into next year.
This normally occurs in respect to signing bonuses, Mr. BlackBob. I'll try to explain ...

Let's say you have a cage full of complete morons. Now, the league says you can only have 5 complete morons, but you want 6. What do you do? You acquire a stubborn, verbose idiot and convert him to a complete moron. It's a simple matter of terminology ... or accounting.

For example, a signing bonus of 50 million on a five-year deal can be spread (cap-wise) over the term of the contract ... five years. That's 10 million each year against the cap.

However, the 50 million you spent in the signing bonus is actual, real, hard cash that went from your bank account to someone else's.

In this way, a team can "spend" money above the cap in any given year, yet remain below the cap in terms of how the money is applied.

Hope that helps.

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