http://www.profootballtalk.com/rumormill.htm JETS NET CAP HIT FOR CUTTING CHAD? ZERO As the New York Jets try to finagle a reduction in quarterback Chad Pennington's 2006 wages, some NFL observers are explaining that the Jets have no real leverage because cutting Pennington would give rise to a $12 million cap hit. We've confirmed that, indeed, dumping Pennington will result in a $12 million cap charge due to the $22 million he already has received under a contract signed in 2004. But cutting Pennington also will result in a savings of $9 million owed to Pennington in 2006. Coupled with the $3 million signing bonus proration, the net cap hit technically would be zero. Actually, cutting him would result in $3 million in cap savings, since there's a $3 million LTBE incentive in Pennington's deal based on him participating in a percentage of the team's special teams snaps in 2006. Though such devices are used to increase the basis for the 30 percent rule, it wasn't necessary in Pennington's contract, since his 2007 salary is only $4 million, far less than his $9 million pay in 2006. Regardless, this incentive means that there's currently $15 million tied up under Pennington's name. Since the $3 million eventually will go away when it becomes impossible for him to participate in 05 percent of the special teams snaps, cutting him would be a wash. There's another minor twist. The Jets have the right to guarantee his 2006 base salary of $6 million. So if they keep Chad at his current wages in 2006 and guarantee the base (an if we ignore the $3 million incentive payment), his cap number would be $7.5 million. Since cutting him would cost $12 million against the cap, the net cap hit as a practical matter would be $4.5 million. But given that the CBA extension likely will get done, cutting Chad now gets him off the books, with no cap charges in future years. And because no one expects the Jets to do much on the field in 2006, it might be wise for the Two Utes who are running the show to bite the bullet now. The bottom line here is that if Pennington refuses to take a significant pay reduction, the fact that cutting him creates a $12 million cap charge should not be an impediment to getting rid of him -- especially since keeping him at a $7.5 million cap number will require paying him $9 million in 2006, but taking a $12 million cap hit by releasing him requires the placement of no further cash into his already unjustifiably deep pockets.
if we cut him this year, there likely is not a cap charge next year, or even if there is, it's a highly manageable 3 million, compared to having him here at 7 or 8 mil for this year, cutting him and paying him an additional 9 next year. Ellis
It's a likely to be earned incentive, so there would be no charge, even if a new CBA is in place. If we cut after 6/1, and there is a new CBA by then, there would be a charge of 9M next yr, so that's not an option. If he's on the TEAM (at his reduced salary) and doesn't hit the incentive (which obviously he won't) there would be a 3M credit on the 2007 cap if there is a CBA in place.
It sounds to me the Jets are dead serious. Take the play cut and re-structure or say good bye to the Jets. I think this has to be the stance taken here. You really can't be Mr. Nice guy about this any longer. Your #1 QB is consistantly supposed to help the team win. Chad no longer fits that definition. I want to go on record as saying I am not a Chad hater. I like him. My best memories are now over 2 years old now, though. That's all I need to hear. I hope he can some how miraclulously come back, but I don't think there is much of a chance, especially if he leaves here. The playing evoluiton of Chad is quasi-similar to Neil O-Donnell not from an injury point of view. Lack of productivity - and all of a sudden they are gone.
I was a Pennington fan ... but not given these circumstances. Seems like a no-brainer to cut him. Releasing him later on is only going to create more problems. $3 million cap hit is manageable, the $6-7 the next two years is not. We need to get rid of this bad contract asap. His arm was brutal this year. There is no way he plays better to start next season. We need to start over at QB.
I agree i'm still a chad fan, but if he can't be the even close to the old Chad he needs to take a pay cut w/incentives. No other team will give him more than vet min.
Sadly, though I really like him, it's time to part ways with him. The FA market is about to explode with talent, there are nice options in the draft, at least one of which will be available to us, and the whole CBA situation is so up in the air, we need to assure we are protected under the cap just in case. If he were to agree to a significant decrease in total salary, with incentives, then keeping him would be an option, but since he appears to be unwilling to do that, we need to suck it up and improve this team long-term.
The Jets were leaning toward signing a new deal with Chad Pennington, rather than cutting him, said a person familiar with the negotiations. -- New York Times
Your facts are so fucked up-- don't anyone listed to this shit. There IS a cap hit if he is cut, there is a big one-- do you even know how this works? if we keep him, his Cap number is between 12-15 million, depending on what source you believe. If we cut him, his cap number is still like 10-12, again depending on who you believe. regarding the 7.5 million number, yes, the jets could make that happen, BUT this is how it works. Chad gets the full amount of money up front as another bonus. So 6 mil is now a GUARENTEED BONUS, which is divided over the next few years, making this years number more cap friendly if we were to keep him. If they were to make this happen, and they they cut him, as you suggested, his cap number would actually be 6 million higher, because that money is not gaurenteed. This is something that will NEVER happen considering the questions about his health. no more posts from you please.
LOL...so much anger huh? The first line of his post...I almost fell of my chair laughing. First off, does he realize the guy was just copying an article? It wasnt his post was it?
HotColes' rant aside, I clicked on the above referenced link and I'll be damned if I can find the actual article on that page. Maybe I'm doing something wrong. At any rate, I'm more confused now than ever. I can't believe that cutting Pennington does not result in a cap hit.
lol...Oh..I couldnt find it either but there was an interesting article on the whether the Jets franchising Abe is legal or not. That alone makes me a bit skeptical about the whole web page.
It says there is a cap hit - but the NET cap hit is ZERO - cutting him means you SAVE $12M on the cap and then get HIT with a $12M penalty... -$12M + $12M = $0. You need to calm the hell down and understand what you are talking about before you go off on someone.
First of all, this is an article I posted, not my own personal words or research (see link in article). So please stop w/the "no more posts from you please". If you don't agree w/the article, fine, but don't blame me. I just posted it to get eveyone's opinion, did not state it was FACT. Cheers, JC
Not saying the article wasn't there at one time, as you say, but why would it have then disappeared? Someone realized it was inaccurate and deleted it?
