The Seahawks worry about “true” cap space so how are they looking for 2020?
Anyone can look up where Seattle is in terms of cap space online. This article dives into where the Seahawks are in terms of “True” cap space.
The Seahawks currently have $14 million in cap space, per Over The Cap. While this number is very healthy, it is important to remember it is not all-inclusive. The figure doesn’t include the rookie contracts, practice squad players, the injury reserve safety net, nor the injury reserve payouts from released players.
Before diving into the numbers, I wanted to give a quick explanation to a cap rule. The NFL uses a rule known as the “top 51” cutoff. This means that only the top 51 contracts on the books are accounted toward the cap. The Seahawks currently have 90 players signed, meaning that 39 players fall below that threshold. The threshold for Seattle at this point is $750,000. This will be important to remember going forward.
Practice squad and injury reserve safety net
Under the new CBA, teams are allowed to sign up to 12 players on the practice squad. It is expected that the practice squad cap hit will be $2.2 million this year.
The injury reserve safety net is a figure that teams build into their cap space. Every year players get injured, it is a part of the game. This money is set aside to absorb some if not all the cost associated with the injury and help replace the player. The amount set aside varies by team, the most common range is between $2-4 million. For this exercise, $3 million is what I am assigning for the injury reserve safety net.
Cap Space (Start): $14 million
Practice Squad: $2.2 million
Injury Reserve: $3 million
Cap Space: $8.8 million
After the deduction of the practice squad cap hit and the injury reserve safety net, the Seahawks are sitting at $8.8 million. This is still a lot of money sitting on the table. However, we are missing two very important pieces to the equation.
The Seahawks have not officially signed any of their draft picks. Therefore, their cap hits are missing from online websites.
Due to COVID-19, many teams are slow to sign players to their rookie deals this year. This is mainly due to the uncertainty around the upcoming season. The last figure I saw said only 20% of drafted players have been signed thus far.
Seattle has yet to sign any of its draft picks. Because of this, the online websites do not have their cap hits accurately registered (all are included online; however, they inaccurately sit below the $750k threshold) against the current amount of available cap space.
Below is a list of our draft selections and their expected cap hits. I have a line separating where the top 51 cut off will exclude certain rookies. Again, this is due to their cap hits falling below the threshold of $750k.
2020 Projected Draft Pool Cap
Round 1, Pick #27: Jordyn Brooks $2,224,656
Round 2, Pick #48: Darrell Taylor $1,229,910
Round 3, Pick #69: Damien Lewis $891,299
Round 4, Pick #133: Colby Parkinson $777,610
——————Top 51 Cut-Off——————–
Round 4, Pick #144: DeeJay Dallas $733,600
Round 5, Pick #148: Alton Robinson $697,837
Round 6, Pick #214: Freddie Swain $642,353
Round 7, Pick #251: Stephen Sullivan $628,872
Projected Draft Pool: $7,826,137
Top 51 Cap hit: $2,123,475
The total cost of the rookie class will be $7.83 million. The amount that will be applied to the books in 2020 will be just $2.12 million. This figure adds Jordyn Brooks, Darrell Taylor, Damien Lewis, and Colby Parkinson’s cap hits ($5.12 million). Then it deducts the $750k of each player that those four drafted players will be replacing in the top 51 (4 players x $750k = $3 million deducted). The final cost for the rookie draft pool against the cap will be $2,123,475.
Failed physical designation for released players
The final piece to our “True” cap equation is the failed physical designation for released players. The Seahawks have released 4 players so far this off-season with this designation.
For each player released under this designation, the team will have to pay out a league-mandated injury settlement. An example: when Cliff Avril was released, he cost the Seahawks an additional $1.15 million against the cap because of his failed physical designation (this will be referenced as FPD going forward).
Per the CBA (Collective Bargaining Agreement): Any player released with an FPD designation will receive an additional payout of up to 50% of the player’s base salary. This amount is capped at $1.2 million.
Released Player Base Salary FPD Cap Hit
Ed Dickson $3 million $1.2 million
Justin Britt $2.8 million $1.2 million
Nazair Jones $758k $379k
Tedric Thompson $2.13 million $1.065 million
TOTAL $3.84 million
One keynote: if any of the players above signs with another team before the regular season starts, the team will be off the hook for the payout to that player. It seems likely that Nazair Jones, Tedric Thompson and Justin Britt will end up somewhere. So long as they sign before the regular season, their FPD cap hit will disappear for the Seahawks, freeing up to $2.64 million.
On the other end of the spectrum, Ed Dickson is likely done in the NFL. This means the floor for the Seahawks FPD cap hit will likely be $1.2 million. The ceiling is $3.84 million if none of the 4 signs before the regular season.
Final Cap Breakdown:
Cap Space (Start): $14 million
Practice Squad: $2.2 million
Injury Reserve: $3 million
Draft Pool: $2.123 million
FPD-Released: $3.84 million
“True” Cap Space: $2.837 million
Having $14 million in cap space seems like a lot. However, when you really dive into the numbers, you realize that the majority of the money has already been spent. It just hasn’t been realized yet.
Before you dip into depression with the idea that there is zero chance Jadeveon Clowney is coming back, keep an eye out for my next article “Several moves the Seahawks should make before the season.” I will outline several simple ways the team can create more than enough cap space to make a deal work.