FanPost

CBA 2.0



Good Morning,

On an earlier fan post Req. made an interesting comment in regards to some of the potential boiler plate issues in the new CBA..

Here is what He said....

"Unfortunately

That only applies to players released, traded, or waived before March 11th, 2011….

That’s Section 5.b.i of Article 11 which details the Transition Rules for 2011.

When I first read a hidden copy of the Transition Rules for 2011, I thought that might be what Lee was talking about, but unfortunately, it’s only talking about what I stated above.

So, IF all the players being released tomorrow (Davis, Williams, Barber, Colombo, etc.) were released before March 11th, we DEFINITELY would not have them hit the salary cap this year or any of the following years.

But unfortunately, since they will be released this Thursday, we have to wait until we can get a copy of the full CBA to see if the cap amnesty applies completely."

 

Here is my re-tort..

"Hi Req...

Req. you are correct in your interp. of 5.b.1-However, here is the problem, 5.b.1 is a standing Sub-Clause with the new “order of the CBA” its attachment point is “under League Years”
In General Provisions " League years 2011 and 2012" are “Transition Years” which are “EXTRA-Ordinary”. in other words the PREEMPTION subordinates 5.b.1 to the “EXTRA-Ordinary” League Years 2011 and 2012. If you follow the logic of 5.b.1 then a gap in League fiscal operations took place between 03/11 and 08/04 2011 , Now players were locked out but the Teams continued to spend money and collect revenue. In order to balance your books on 08/04 you have to produce a P&L and a Cash Statement. To balance Team books during the Gap certain provisions PREEMPTED to the "Extra-Ordinary " terms of League Years “2011 and 2012” see the Williams and Weddle deals..Today I have time to do another fan post and try and break this out with a bit more clarity…"

 

At first I considered Req. was experiencing tunnel vision, then I considered maybe he was actually just reviewing the Owner prop from 03/09 or some component of that. Then I realized all that he was drawing from was the PROPOSED transition rules which would not include the Preemption Provisions to the deal and its terms.

 

In my previous post I used the example of a widget machine to describe the new CBA ( A financial Frame-Work, Several Moving Parts attached to the Frame-Work and boiler plate rules of application to contain everything.) I hind sight I must admit this was not the best example (it doesn't gel) I think I should go an entirely different direction that might better break this out.

 

Any collective bargaining agreement is really just a manual for a calculator. The entire context of the manual relates to money (how much and when). If you have ever seen the manual for a TI Scientific Calculator you understand it's pretty thick because it not only tells you what each key function is it also tells the "how to's" to maximize the calculator. Most people struggle to operate the Scientific Calculators because they don't remember the correct order of key's to stroke to enable the calculator to do a certain equation.  Even more confusing is the presence of what is called a 2nd function key , this when enabled changes the operation of certain keys on the calculator (this is what creates moving parts and takes the deal from 2-dimensional to 3-dimensional, it creates the FRAMEWORK). Everyone accepts that 2+2 =4, now if your calculator is set to 2-dimensions only then 2+2=4, however If you engage the 2nd function you create a new 3-dimension , in this context 2+2=4 takes on a "NEW" form.  You have x--y-z that means you now change the equation to 2+2+2=6 using your 2nd Function you added a new dimension "Z" therefore the equation must change and the answer takes on a "NEW" form. What the owners wanted from a NEW CBA was more Freedom and Controls, to this moving parts had to be added (2nd Function Key) this allows the person operating the CBA/Calculator to do more things become creative and manipulate the out-come (there is no CORRECT answer only ACCEPTABLE answers in League TERMS.)

 

So, Req.'s interp of 5.b.1 is CORRECT as long as your in 2-dimensions 2+2=4, however the deal is 3-dimensions which means there is now a "Z" which takes precedent over and subordinates the 2-dimension equation (the order of the key's you must stroke to get to an ACCEPTABLE answer.) So the CBA actually has FOUR moving PARTS (2nd Function Keys) that allow the owners/operators the most freedom to engineer, and as stated above most people can't operate a TI Scientific Calculator that well.

 

Now the  owner/operator has a new fancy toy, the problem is there at a crossroads, they will have to choose one of three path's , these paths are unmarked, the manual they got with there fancy new toy is a little hazy on which equation is the "map" to follow. One path I think is the Gold Standard..it's leads your team to the PROMISED land. One Path is a tough road but your team can survive this. The THIRD path takes you straight off a cliff (2013). This is a complex choice that the owner/operator has to take (follow the 2-dimension 2+2 equation in 5.b.1, or engage  2nd function and follow the contradiction inside 5.c.1 in the 3-dimension.)  Most owners are going to react like a new student with a TI-99 in hand they will never max. the potential of that Scientific calculator and stick to the 2-dimension and produce a maybe Acceptable Answer. In terms the NEW CBA is giving less astute owner/operators rope to hang themselves with. Just look at some of the Stupid money deals that were made just yesterday!

These initial mistakes made at the start of the  NEW CBA will lead several teams right down path number #3 and over the cliff.(2013)

 

In the same post I also posted a re-tort to a Post by Fitat: It follows here..

 


"Response to Fitat..

I wish I had time to today to expound on this, but I don’t so I will try and explain this fast ..
When the owners were sold the new CBA they were given all the plus’s up front (expected outcomes) Each owner was convinced this deal gave them exactly what they wanted (more controls to move their team in whatever direction they choose) Once the owners walked away from the table they brought home the framework and provisions for their internal legal team to evaluate. On a document this complex it will take 7-10 days to interp. and and devise a course of action. Over the weekend there was a dear lord moment at several team headquarters. Expected outcomes are effected by something called Synergy in every deal with moving parts. Synergy in essence is untoward effects (that is how the deal says one thing and works another way entirely in motion.) Most teams saw massive loop holes to move dead money and assumed they were not really under the gun to act on their bad deals immediately (2011 and 2012 are Transition Years.) And considering this is the first look many teams have had at framework they are still trying to piece the puzzle together. Over last weekend a few sharp arrow legal eagles put it together fast , before crying wolf , they sought secondary legal opinions from outside, probably a few friendly judges and more notably faculty members at several major law schools were asked to look it over from an unbiased precept. They are just now starting to get the results. It will still take the individual legal teams several days to dissect the information and break-it down for the owners.

From my understanding here is the way it breaks …

4- teams are dead in the water (35 or more heavy back loaded contracts that need re-do)
 PATS, EAGLES, GB AND JETS

5-teams are in real trouble (20 or more back loaded contracts that need re-do)
 GIANTS, MIN, AZ, ATL, INDY

4-teams are on an outright jail break (less than 10 back loaded contracts to deal with)
 WASH, DAL, MIA, CHI..

FITAT is correct about 2012…in one regard, if the old CBA rules were in effect..this entire list would be turned upside down.. with the new rules and how the entire framework is boiler plated up, teams that practiced the “player stock piling model” are toast, hence GB demanding 2 Transition Years in the deal instead of just one. Right now the league and teams are in flux, no one (except for a couple teams) have any real ideas about how this all lays out (i.e. 2013) The teams are taking stock and trying to determine how to proceed will adapt and survive some teams will gamble throw caution to the wind and try to Win Now. A couple teams have a real advantage and are trying to figure out the best path to capitalize on the New CBA.. For most 2011 will not be a dire year…2012 may be the end of several teams world.."

 

NYG-Slater found a problem in his mind with this assessment ...

"How do we have 20 or more back loaded contracts that need re-do?
Excluding rookie contracts we currently only have 14 players signed through 2012."

To answer this, you have to UNDERSTAND the problems for teams really start in 2013.. If your teams only has 14 contacts out of 53 extended out past 2012 then your attention has to be focused on re-signing YOUR players to NEW long-term DEALS (COWBOY's) first. The problem for TEAMS  gets really murky when you start adding in the concepts of the previous CBA and BACK-LOADING of player contracts (this is not only SALARY but also ESCALATOR CLAUSES, PERFORMANCE BONUS's, and ROOSTER BONUS') if your TEAM used any one of these TOOLS to construct a large number of its PLAYER CONTRACTS you ARE DEAD in the WATER ! In stead of the LONG TERM health of your TEAM you now have to go re-do each one of these deals at HIGHER SALARY rates for the PLAYERS in 2011 and 2012 the "TRANSITION YEAR's" just do get under the cap for 2013 (the acceleration clause effectively creates NEW DEAD MONEY against the CAP for future season's). If you choose to do nothing (EAGLES-Howie PLZ read this !) you will by inaction be  forced down PATH #3 and have to blow up your team in 2013. Teams that are listed as in TROUBLE or DEAD in the WATER have to fix alot of CONTRACTS because there management OVER used certain TOOLS under the old CBA to sign BIG DOLLAR free agents with out taking hits to that current year's  Salary CAP. The following is a technical example of possible application of this NEW rule..

 

NYG_Slater...you answered you own question...

The Giants problem is they only have 14 GUYS signed out past 2012, the toughest year to sign any major contracts will be 2013.. Here is why, “A team’s salary cap is adjusted downward for UNEARNED bonuses that were earned in the previous year but not counted against that year’s cap.” to qualify this use this example. Eli has an escalator clause worth 2.5 mil for surpassing 4000 yds in League Year 2011 in his current deal. He hits this bonus and gets paid the money , however, the problem is under the new CBA the 2.5 mil is subtracted from the Giants 2012 SALARY CAP dollar for dollar no off-sets. UNEARNED bonuses extend to ALL escalator clauses/Performance bonus’s and Rooster Bonus’s. That means any contract player with one of the above mentioned clauses that will likely be achieved can hurt the team. What the Giants now have to do is re-do those deals to prevent NEW DEAD money that can account against the Team Salary Cap for 2012 and 2013 . Back loading a contract is not only Salary its the escalators and Rooster bonus’s that create New Dead money (Subtractions from the Salary Cap). The veterans are going to CASH in now because teams like the Giants are going to have to re-do deals and pay higher Salaries to eliminate the escalators and bonus’s. The Giants are desperate but others are in tougher spots. (Smile , you have at least 10 players + rookies that have contracts that won’t bite!)"

 

Its also interesting that most people even commentators can't get their minds around how the NFLPA and the Players would go along with this. I believe NFLPA Smith went into these negotiations with a very limited number of objectives (3 items), 1-eliminate the the owner's revenue carve out, 2-force the owners to take Back-loading of Player contracts off the table, 3-simplify the math in the deal for the sake of better transparency. In each case he succeeded, For my point Back loading is now penalized in future Salary Cap math( this is the addition/subtraction clause with in the Transition Year's of 2011 and 2012, People are calling this the SOFT CAP). For the Player perspective Back loading was money not ever likely to be collected, hence the teams were effectively ripping them off. (also note item #3 simplify the math) Smith judged correctly that the initial owner moves after the lock-out would drive player Salary (earned) into the stratosphere. At some point in front of the mediator I think  in early June the actual number of Back loaded deals came to light and was divided down to Team levels,(see list above) This changed the argument and I believe forced the Owners to adapt the GB provision for 2 Transition Years instead of ONE. The acceptance of the HARD back lash against Back loaded Deals was moot for owners like Kraft , because these were tools they over USED to stockpile players and minimize the CAP consequences.( Effectively Dead in the Water Teams created the PROBLEM and NOW would have to pay the price, THERE favorite tools were going to the DUMPSTER). Each Dead in the Water Team has to fix as many of these contracts DURING 2011 or feel the pain in 2012 and 2013 subtracted from their Salary Cap. To do so the NEW market reality is HIGHER Player Salaries NOW , more money to the Players and a major feather in Smith's cap.

 

Those are the expected outcomes that moved the Team Player Reps to support this clause and effect, however the PREEMPTION that enables this 2nd Key function for the PLAYERS, WAS CLEARLY by pretext created by an OWNER.

 

For the owners the Synergy of the deal is not very clear for most.  For a unanimous approval (except for Al.) means that each owner really believed they were getting what they individually wanted from this NEW CBA. (for most it was either control or freedom). I believe as of 07/26 only two teams in the League have a clear idea of how when assembled and placed into motion this new Calculator is gonna function (all the 2nd Key's). This creates a proverbial Chinese Fire Drill to get 2011 off and running in order.(see the owner time line from Thursday, Goodell had to sense this was going to go badly if the Teams didn't have some orderly progression to follow, THE Team Player reps effectively blew the time line up and created a SNOW BALL effect that would harm those owner/operators that were still trying to study the Manual for their Fancy new TI Scientific Calculators.)

 

Even worse for the owners is this, YOU just signed off on your operating rules in effect for the NEXT TEN Years , WITH NO OPT OUT!!!!!!!!!!!  By definition a CBA of this size MUST have an OPT out because you have no IDEA when assembled exactly how it is going to work! (expected/untoward outcomes.) If Goodell is right and some owners have a slow learning curve here, then this NEW CBA is Suicide Pact.  In my experience an owner who fails to take full course understanding of their own vote and its consequences  in this matter is INSANE! (see Raiders- Al is not the ONLY ONE!)

 

 

Several sources are starting to question why the NFL is not answering requests for explanations concerning context of the NEW CBA. Many of the talking Heads mistakenly believe it is because the deal in not completely ratified (player vote 50% +1). The reality is much more sinister.  When the Brady Bunch filed their suit under S.A.T. the thinking was all wrong in regards to terminating the action the problem is the non-statutory labor exemption is NOT completely settled LAW. An activist Judge (Susan) can ask to review the NEW CBA  on the grounds that her interpretation of non-statutory labor is not as broad as the precedence of the Case Law, this action forces a more formal approach which is subject to approval of the court. (CAN OF WORMS FOR EVERY ONE! Except Susan). The NFL must be scared blind by this possibility,( Judge telling the owner/operators how they can use their fancy new calculator.)  Therein, the NFL is not going to be saying much of anything regarding the NEW CBA until the BRADY Bunch goes away. And don't forget the DOTY case as well..Anything you say CAN AND WILL be used AGAINST YOU IN A COURT OF LAW...(League-wide GAG ORDER)

 

Leaving alot of questions and confusion about how Teams (GM's) should be operating right now. To do my little part I devised a quick reference score-to-live-by  to help follow the decision matrix and see where your teams really are.

 

(Eagles-Howie, this is the part you NEED to PRINT for Reference.)

 

1-YOU HAVE TO DO SOMETHING-ROLL UP YOUR SLEEVES THERE IS A LOT OF WORK TO BE DONE.

 

2.-STOP TALKING TO REPORTERS-NO COMMENTS NOW..EVEN OFF THE RECORD ONES.

 

3.-ITS ALWAYS THE ECONOMY STUPID-YOU CAN'T COUNT ON FUTURE REVENUE INCREASES TO SAVE YOUR BACON...

 

4-ANY CONTRACT YOU SIGN SHOULD NOT EXCEED FOUR YEARS- SEE #3

 

5-CONCENTRATE YOUR EFFORTS TO RE-DO SKILL POSITION PLAYERS CONTRACTS FIRST

 

6-LOAD EVERY POSSIBLE DOLLAR YOU CAN ONTO THE 2011 SALARY CAP, BORROWING AGAINST THE SECOND YEAR OF TRANSITION ONLY IN EMERGENCY.

 

7-DO NOT RE-STRUCTURE ANY EXISTING DEALS PRIOR TO AUG. 4TH 2011 TO MAKE CAP SPACE, BAD DEALS SHOULD BE CUT FIRST, THEN APPROACH YOUR TEAMS  FREE AGENTS.

 

8-ARTIFICIALLY INFLATE THE AUG 4TH SALARY CAP ESTIMATE TO TAKE ADVANTAGE OF EVERY SOFT DOLLAR AND TRANSITION ALLOWANCE AVAILABLE.

 

9-ON AUG. 5TH. START RESTRUCTURING MAJOR LONG TERM DEALS CONVERTING MOST SALARY FOR 2013 AND 2014 INTO SIGNING BONUS PAID OUT IN 2011.

 

10-USE THE FRONT ROLL TECHNIQUE TO MOVE SALARY CAP SAVINGS FROM 2010 INTO 2011 AND 2011 INTO 2012 AND APPLY THIS MONEY TO THE 2011 RE-DO'S OF YOUR IMPACT PLAYERS DEALS .

 

11- AS A RULE CUT THE SALARY (FOR 2013 AND 2014)  IN EACH RE-DO BY 25% BY LOADING THE SIGNING BONUS'S.

 

12-DON'T SPEND A DIME ON FA'S UNLESS ABSOLUTELY NECESSARY TO PLUG GAPS BEFORE YOU HAVE AT LEAST 40 NON-TOXIC FRONT LOAD DEALS ON YOUR ROOSTER.

 

13-ASSESS WHERE YOU ARE IN THE CAP BEFORE MOVING FORWARD. DON'T ASSUME IT SEE IT!

 

14-AVOID PROTRACTED HOLD-OUTS AND BAD BLOOD WITH ANY IMPACT PLAYER, PAY THEM NOW IT WILL BE CHEAPER.

 

15-DO NOT USE THE FRANCHISE TAG (EXCEPT QB'S) THE SALARY CAP IMPACT TO THE TEAM IN 2012 AND 2013 IS UNBEARABLE.

 

16-ASSESS YOU ROOSTER DECIDE WHO CAN CONTRIBUTE TO YOUR TEAM IN 2015, THEN MAKE THOSE PLAYERS YOUR SECOND PRIORITY.

 

17-DO NOT BE AFRAID TO CUT PLAYERS (WITH THE EXCEPTION OF QB, LT, AND ROLB THOSE POSITIONS ARE GONNA COST YOU BIG IN THE NEW MARKET.) EVERYONE ELSE IS EXPENDABLE.

 

18-MAKE A PLAN AND STICK TO IT (BASED ON THE LOW END OF THE SALARY CAP EST. FOR 2012-2014) TRY AND GET 15 MIL UNDER THE CAP AT CLOSE OF LEAGUE YEAR 2012.

 

19-DON'T TAKE A DUMP WITH OUT A PLAN (NOW YOU CAN THINK ABOUT THE CURRENT FA MARKET AND SPEND WISELY  VETERAN PLAYERS WILL BE HAD MUCH CHEAPER LATER.)

 

20-FORGET ABOUT TRYING TO KEEP UP WITH THE JONES'S THEY WROTE THE DEAL.

 

These are merely suggestions..(EAGLES-NOT FOR YOU HOWIE!)

 


If anyone cares to reference my material here I can give you a very good start point research the Arkoma (Jerry Jones)  Arkla Gas Deal. This should really be taught by more Law Schools it would make my life much easier.  Jones who is responsible for (wayyyyy)  to much technical input in the new CBA, has a track record of creating complex MA's and Deals that are light years ahead of anything else.  The man is not just a Pathfinder he is Avatar of the deal he see's not only the form in the deals but the  function (2nd Key's)  of the machine before it starts operating. More relevant to the NEW CBA, it gives you a glimpse into how Jones's mind functions,. Jones uses deals as SPRINGBOARDS to make GREAT LEAPS forward. This new CBA is a loaded document that will move the NFL forward in the context of one small step for  the NFL one GIANT LEAP for JONES.

 

I am going to coin a new phrase for you here -

 

THE NEW CBA IS JERRY- RIGGED!!

 

Well break over have to get back to figuring out that other problem, not sure if were gonna be broke Tuesday or on the 19th..what a mess its making my eyes cross...

 

P.S. to all journalist HACKS-note this is copyrighted material-you print any of it with out my express written authorization I WILL SUE YOU..And believe it when I say I am the last person that you, your editor, and your publisher really want to go to court with!

 

copyrighted 2011, lqfIII

 

also I am trade-marking Jerry-Rigged.,

 

 

 

 

 

 

 

Another user-created commentary provided by a BTB reader.

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