Four teams are set to receive some cap space tomorrow due to post-June 1st cuts, as ESPN’s Field Yates points out on Twitter. Those clubs include:
- Bears: $1MM (Cody Parkey, story)
- Chiefs: $9.55MM (Eric Berry, story)
- Falcons: $6.45MM (Ryan Schraeder, story)
- Panthers: $7MM (Matt Kalil, story)
Way back in the day, our own Luke Adams explained all of the nuances of the June 1st designation. In simplest terms, a team’s salary cap can account for a released-player’s bonuses based on two separate time periods.
If a player is designated for release prior to June 1st, the remaining bonus money is immediately added to the upcoming year’s cap. Jason Fitzgerald of OverTheCap.com uses the 2013 release of Steve Breaston (Chiefs) as an example. The wide receiver only completed two years of his five-year contract, meaning he was only paid $2MM of his $5MM bonus. Therefore, since he was designated for release prior to June 1st, the remaining $3MM in bonus money was added to the Chiefs’ 2013 salary cap.
However, if the player is designated for release after June 1st, then the player’s current-year bonus remains the same for that respective year (in regards to the salary cap) . The rest of that bonus money would then be added to the following year’s cap. So, using Breaston as an example, if the Chiefs had designated him for release after June 1st, then the team would have seen his $1MM bonus money added to their salary cap in 2013. Then, in 2014, the remaining $2MM would be accounted for.
So why were teams announcing these releases prior to today? Well, the NFL allows each team to designate two players as a post-June 1st cut. This provides the player with more time to find their next gig. This was seemingly a concession by the teams, as they benefit via the salary-cap relief.
For the Bears, Chiefs, Falcons, and Panthers, this added cap space will be especially useful as they look to sign their draft picks or extend their current players. These teams could also be looking to clear some space for a free agent acquisition, as the Panthers are presumably doing for Gerald McCoy.