Bill B
04-02-2007, 06:39 PM
Do any of the salary cap gurus on the site know of how much the Redskins use NLTBE (Not likely to be earned credits) to help augment their cap? I would hope the Redskins use this rule to their advantage:
Below is a summary I saw on how these credits can be gained from a site called Niner cap hell:
NinerCapHell.com | Salary Cap Home (http://www.ninercaphell.com/salary)
Q: What do LTBE and NLTBE stand for?
A: LTBE stands for Likely To Be Earned. NLTBE stands for Not Likely To Be Earned. These phrases are in reference to incentives, and how these incentives count towards the cap. An incentive is considered LTBE if the specified performance was achieved the previous year. This goes for an individual or a team incentive. Therefore, if the performance was not achieved the previous year, the incentive is considered NLTBE. All LTBE incentives are counted against the cap, while all NLTBE incentives are not counted against the cap.
Q: How do LTBE credits work?
A: LTBE credits can be used to transfer cap room from one year to the next. The CBA states that if the LTBE credits that weren't actually achieved are greater than the NLTBE credits that actually were achieved, the the difference will be added to the next year's salary cap. Even though all LTBE incentives are counted against the cap, not all of them are actually achieved. Since using up cap room for money that ended up not even being paid is unfair, teams can get a credit for the next year. However, if the NLTBE incentives that are earned are greater than the LTBE incentives that are not earned, the team will have its salary cap decreased the following year. So while there is a starting salary cap each year, almost every team ends up having a different salary cap after the incentives are calculated.
Q: So do teams just get lucky? Or is there a way to control this?
A: The key to the whole thing is on page 124 of the CBA, which states that "Any new or altered incentive bonuses renegotiated in a pre-existing contract after the start of the regular season in which they may be earned automatically will be deamed "likely to be earned" during that season". This means that a team could write any incentive into a contract, and it will still be considered LTBE and counted against the cap. So if a team has 3 million in cap room at the end of the season and knows they won't use it, they can write bogus incentives into player's contracts to create LTBE incentives that won't be achieved. This makes the LTBE incentives not achieved greather than the NLTBE incentives achieved, so the team's salary cap is raised the following year.
Below is a summary I saw on how these credits can be gained from a site called Niner cap hell:
NinerCapHell.com | Salary Cap Home (http://www.ninercaphell.com/salary)
Q: What do LTBE and NLTBE stand for?
A: LTBE stands for Likely To Be Earned. NLTBE stands for Not Likely To Be Earned. These phrases are in reference to incentives, and how these incentives count towards the cap. An incentive is considered LTBE if the specified performance was achieved the previous year. This goes for an individual or a team incentive. Therefore, if the performance was not achieved the previous year, the incentive is considered NLTBE. All LTBE incentives are counted against the cap, while all NLTBE incentives are not counted against the cap.
Q: How do LTBE credits work?
A: LTBE credits can be used to transfer cap room from one year to the next. The CBA states that if the LTBE credits that weren't actually achieved are greater than the NLTBE credits that actually were achieved, the the difference will be added to the next year's salary cap. Even though all LTBE incentives are counted against the cap, not all of them are actually achieved. Since using up cap room for money that ended up not even being paid is unfair, teams can get a credit for the next year. However, if the NLTBE incentives that are earned are greater than the LTBE incentives that are not earned, the team will have its salary cap decreased the following year. So while there is a starting salary cap each year, almost every team ends up having a different salary cap after the incentives are calculated.
Q: So do teams just get lucky? Or is there a way to control this?
A: The key to the whole thing is on page 124 of the CBA, which states that "Any new or altered incentive bonuses renegotiated in a pre-existing contract after the start of the regular season in which they may be earned automatically will be deamed "likely to be earned" during that season". This means that a team could write any incentive into a contract, and it will still be considered LTBE and counted against the cap. So if a team has 3 million in cap room at the end of the season and knows they won't use it, they can write bogus incentives into player's contracts to create LTBE incentives that won't be achieved. This makes the LTBE incentives not achieved greather than the NLTBE incentives achieved, so the team's salary cap is raised the following year.