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Thread: Please explain the "credit card" approach

  1. #1
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    Considering we have huge contract issues coming up (McKenzie, Abe, Ellis, Chad, LaMont) and we're in a tight cap situation (seems like we've always been since signing O'Donnell) I've read many articles saying how we're gonna have major issues since the Jets don't like to use the "credit card" approach. What is it exactly?

    The Redskins sign high-priced players all the time. The Steelers are able to keep their foundation for the most part. The Vikes have their 2 key players (Dante and Moss) locked in for years to come. do they use that approach?

    My issue is, from the little I understand of that method, it comprimises the future of your organization, but I say it's worth the risk/dead money if it's for signing your own young talent. I'd rather have that money spent on our own home-grown players (adding to the decent lineage of Jets players) then being stingy and going after crap agents.

    How can the Jets say they don't like to use the "credit card" method and allow a good portion of our young talent leave? (examples of Coles, Thomas)

    From what I understand of it, the JEts should use it to keep their own players, but not to sign big-name FA.

    any insight?

  2. #2
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    Originally posted by Gas2No99@Oct 17 2003, 02:11 PM
    Considering we have huge contract issues coming up (McKenzie, Abe, Ellis, Chad, LaMont) and we're in a tight cap situation (seems like we've always been since signing O'Donnell) I've read many articles saying how we're gonna have major issues since the Jets don't like to use the "credit card" approach. What is it exactly?

    The Redskins sign high-priced players all the time. The Steelers are able to keep their foundation for the most part. The Vikes have their 2 key players (Dante and Moss) locked in for years to come. do they use that approach?

    My issue is, from the little I understand of that method, it comprimises the future of your organization, but I say it's worth the risk/dead money if it's for signing your own young talent. I'd rather have that money spent on our own home-grown players (adding to the decent lineage of Jets players) then being stingy and going after crap agents.

    How can the Jets say they don't like to use the "credit card" method and allow a good portion of our young talent leave? (examples of Coles, Thomas)

    From what I understand of it, the JEts should use it to keep their own players, but not to sign big-name FA.

    any insight?
    I believe that is the approach that they will take.

    Coles was an entirely different issue in that they decided not to give "franchise" like numbers to a receiver -A strategy that I would agree with.

    I think Thomas represented a player that they thought that they could improve the position at. Don't get me wrong, Thomas is a very good player. But what he brings a team is not something they necessarily need mor of with the line as it is constituted-an athletic blocker that pass protects well and can get on an edge.

    I think that they are looking to get more of a straight line bull rush from that position, and probably thought they may have had it in Goodwin. Time will tell on that one.

    Getting back to your original point-I will be very interested this off-season to see how they approach these contracts (remember-only McKenzie is a RFA, the rest are locked up for 2004). I suspect you will se a much greater emphisis of keeping our own and going after mid level FA's.

  3. #3
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    To understand the credit card approach, you need to understand how the salary cap works.

    Basically, players' compensation are divided in three different sources:

    1) Salary
    2) Signing bonuses
    3) Performance or workout bonuses

    Only signing bonuses are guaranteed money. Signing bonuses are spread out during the length of the contract. For example, let's say a WR signs a 6year deal where he receives 12M SB and the following salaries.

    2003 - 500K
    2004 - 500K
    2005 - 1M
    2006 - 7M
    2007 - 7M
    2008 - 8M

    The 12M signing bonus will count against the cap for 2M during each year of the deal. Thus, you need to add the SB proration to the salaries to figure out the cap cost of the player.

    2003 - 2.5M
    2004 - 2.5M
    2005 - 3M
    2006 - 9M
    2007 - 9M
    2008 - 10M

    As you can see, this is really a 3 year deal worth 15M. After the 3rd year, the player's salary will be so high that the team will have to release him or renegotiate. If they release him, they will take a 6M cap hit because the player will only have played half of the years of the contract.

    In this case, the team will pay the player 15M in the first 3 years but only 9M will count against the cap. Later, the will either have to take the cap hit or overpay for the player services. In both cases, they have decided to borrow against the future cap years by using a big signing bonus and low salaries.

  4. #4
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    Originally posted by Gas2No99@Oct 17 2003, 02:11 PM
    Considering we have huge contract issues coming up (McKenzie, Abe, Ellis, Chad, LaMont) and we're in a tight cap situation (seems like we've always been since signing O'Donnell) I've read many articles saying how we're gonna have major issues since the Jets don't like to use the "credit card" approach. What is it exactly?

    The Redskins sign high-priced players all the time. The Steelers are able to keep their foundation for the most part. The Vikes have their 2 key players (Dante and Moss) locked in for years to come. do they use that approach?

    My issue is, from the little I understand of that method, it comprimises the future of your organization, but I say it's worth the risk/dead money if it's for signing your own young talent. I'd rather have that money spent on our own home-grown players (adding to the decent lineage of Jets players) then being stingy and going after crap agents.

    How can the Jets say they don't like to use the "credit card" method and allow a good portion of our young talent leave? (examples of Coles, Thomas)

    From what I understand of it, the JEts should use it to keep their own players, but not to sign big-name FA.

    any insight?
    Steelers have lost so many players over the years its ridiculous. They have been successful b/c they have drafted well. As for the Skins, their spending has gotten them nowhere!!

  5. #5
    Gamingfrog- you should be a capologist instrucor. Great explanation.

  6. #6
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    Thanks gaming frog. MUCH appreciated.

  7. #7
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    Bradway's a skinflint! :[img]http://www.jetsinsider.com/forums/html/emoticons/mad.gif' border='0' style='vertical-align:middle' alt='mad.gif'>

  8. #8
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    God - JOHN LENNON - Plastic Ono Band (1970)


    GOD
    © 1971 Lennon Music


    Chords used:
    EADGBE
    C: 335553
    G: 355433
    G/F#: 235553
    Em: 779987
    Em7: 779787
    D: 557775

    Intro: G Em C D

    G G/F# Em
    God is a concept
    Em7 C D G
    by which we measure our pain
    G/F# Em Em7 C D
    I'll say it again
    G
    God is a concept by which we measure our pain yeah
    G/F# C G G/F#
    pain yeah

    Em G C D
    I don't believe in magic
    I don't believe in I Ching
    I don't believe in Bible
    I don't believe in Tarot
    I don't believe in Hitler
    I don't believe in Jesus
    I don't believe in Kennedy
    I don't believe in Buddha
    I don't believe in Mantra
    I don't believe in Gita
    I don't believe in Yoga
    I don't believe in Kings
    I don't believe in Elvis
    I don't believe in Zimmerman
    Em G C [tacet]
    I don't believe in Beatles

    G G/F#
    I just believe in me
    Em C D
    Dude Love and me
    And that's reality

    G G/F# Em
    The dream is over
    Em7 C D
    What can I say
    G G/F# Em
    The dream is over
    Em7 C D
    Yesterday
    C D
    I was the dreamweaver
    G G/F# Em Em7
    But now I'm reborn
    C D
    I was the walrus
    G G/F# Em Em7
    But now I'm John
    C D
    And so dear friends
    G G/F# Em Em7
    You'll just have to carry on
    C G
    The dream is over

  9. #9
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    1 COMMENT - Remaining $$$ on Vinnie, Mo and Curtis - big $ tied up in older players with time to go - have to wait till out of this "cap hell" we created to become active - still have to resign JAbe, Ellis, Chad and McK after 2004 - contracts are through 2005 I think.

    Need to manufacture the space!!

  10. #10
    Waterboy
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    Instant karma's gonna get you :o

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