When trading a player, the original team takes the same cap hit as if they were cutting him. The new team is responsible only for the remaining unpaid salaries and bonuses. Ferguson has enormous unpaid salaries remaining, and would be a giant cap hit on the Jets. That makes him a poor choice to be cut or traded this year.
If he were traded pre June 1 the cap hit would be 6.2mil...You agree?
Dewayne Robertson's contract: Signing bonus:
$3,000,000.
Base salaries:
$1,746,000 (2003);
$2,182,000 (2004, plus $10,000,000 option bonus);
$2,618,000 (2005);
$3,054,000 (2006);
$3,491,000 (2007);
$3,927,000 (2008);
$1,600,000 (2009).
Notes: If the Jets exercise the $10,000,000 option payment in 2004, the base salaries are reduced to
$516,250 (2004);
$952,000 (2005);
$1,388,000 (2006);
$1,450,000 (2007).
There are escalators each season 2006-2009. Total: 7 years, $24,579,250, with potential for 7 years, $54,000,000.
The Jets did exercise the option bonus, which means as follows:
$3 million/7 ~ $430k
Three years have gone by, which means the remaining bonus is 4*$430k, which is about $1.71 million.
Next, we have an option bonus of $10 million. Only two years have gone by for that bonus, meaning 4 years remains. That works out to about $6.7 million.
$1.71 million + $6.7 million = about $8.4 million that will hit the cap if he's cut before 6/1.
If he's cut after 6/1, only one year worth of amoritzation from both bonuses will count this year, which is $430k + $1.67, or about $2 million, and the net cap impact for this year will be less than that b/c his $1.38 million salary will come off the books. However, the following year, you wind up with $6.4 million of dead money that will hit all at once.
If the Jets trade him during the draft, it's a $8.4 million - $1.38 or about $7 million cap hit this year. If the Jets cut him or trade him after 6/1, it's about $600k net this year, and $6.4 million next year. To me, that's horrific. As for his remaining salaries, they are palatable for this year and next year.