Per LaCanfora: Jaguars and Cardinals Prepaid Money Before Trades

According to Jason LaCanfora the Jacksonville Jaguars and Arizona Cardinals both pre-paid significant portions of Eugene Monroe’s and Levi Brown’s salaries to facilitate a trade to the Baltimore Ravens and Pittsburgh Steelers respectively.


This makes the trades much more reasonable for the capped out Steelers and Ravens, whose trades at full prices for these players made little sense. Based on LaCanfora’s tweets my assumption is that the teams have reduced the base salaries to the mandated CBA minimums which should actually result in larger bonuses being paid by the original teams.

In the case of Brown he will have earned 4 weeks of salary at a rate of $4.75 million and the remaining weeks at a base of $715,000. His effective salary will be $1.76 million, meaning the Cardinals should have paid a bonus of $3.086 million to make the contract whole. Teams can not use any bonus mechanisms during the season to avoid proration treatment of these prepayments, unless they were to void the remaining years of the contract. What that means is that the Cardinals should now carry a dead money charge in 2014 of $6,514,191 for Brown. His final cap charge in 2013 for the Cardinals should be $3,539,044. The Steelers should only be responsible for $546,765 in salary cap charges for 2013, making the cap effect of trading for him almost negligible. The signing of Brown looks to have been a disaster for the Cardinals based on the financials now.

In Monroe’s case he will earn $715,000 for the remaining 13 weeks of the season and will have earned $894,118 prior to the trade. It is likely that the Jaguars paid him $2,359,117 in a bonus, half of which should count in 2013 and half in 2014, unless the 2014 season was void allowing it to all accelerate into 2013. Considering Monroe’s contract was set to void it is possible that the Jaguars could have done this rather than carrying dead money in 2014. At worst they will now carry $2.577 million in dead charges for Monroe in 2014. The Ravens should only be responsible for $546,765 in cap charges.

When the trades are made official and the true cap numbers come in we’ll get the correct figures in for both players rather than the guesswork contained in the post.

Follow @Jason_OTC

[subscribe2]