Friday, February 27, 2009

The salary cap implications of releasing Kendall Simmons

Signing RG Kendall Simmons to a four-year contract extension in 2007 turned out to be a very costly mistake for the Steelers. By releasing Simmons, the team saves the $3.1 million salary he would have been paid this season (as well as $4.4 million in 2010 and $4.6 million in 2011), but by letting him go with three years remaining on his contract the prorated remainder of his signing bonus accelerates onto the Steelers’ 2009 cap. Translation? Simmons will take up approximately $4.75 million of this year’s cap, in spite of the fact that he is no longer on the team.

Historically, the Steelers have been fairly good about keeping the amount of “dead money” counting against their salary cap to a minimum. But this is a good example of why it’s painful to cut players who received large signing bonuses (in Simmons’ case, $7.85 million) with multiple years remaining on their contracts.

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Anonymous Anonymous said...

He is dead money, but they only pay an addtional 40k to cut him. He would have cost 4.67 on the Cap if they kept him, plus they lose the salary. The net is about a negative 1.3 million.

9:07 AM  

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