June 22, 2024


Costing Accounting Everyday

The Steelers’ salary cap implications due to Stephon Tuitt’s retirement

On Wednesday, the Pittsburgh Steelers launched a statement from Stephon Tuitt asserting his retirement from the NFL. While some Steelers enthusiasts have been pretty amazed, many others noticed the chance months in the past.

The point the announcement came on June 1 is by no coincidence. When searching at player’s wage and the income cap implications, June 1 is a very essential date. When a participant is released or retires from the NFL prior to June 1, all the remaining useless cash from their income comes owing for the future period. But soon after June 1, only the lifeless revenue that was due in that season is counted versus the salary cap and the lifeless money from further years is all counted in the adhering to year’s income cap.

Due to the fact June 1 made use of to bring an additional wave of players hitting no cost agency as groups waited in order to handle their income cap, the NFL came up with a process a lot more than a 10 years back the place teams could opt for up to two players they introduced prior to June 1 as possessing a put up-June 1 designation. What this meant was more revenue would appear because of towards the wage cap after June 1 arrived at the participant would be in a position to enter cost-free agency at the time of their launch. This follow is continue to used in the NFL today with a amount of players currently being produced this offseason and carrying a write-up-June 1 designation.

Not only does a put up-June 1 designation occur into engage in when releasing a participant, it also will come into enjoy if the player is traded. When the Steelers traded Antonio Brown to the Oakland Raiders adhering to the 2018 NFL year, they had the possibility to designate Brown with a submit-June 1 status. Instead, the Steelers made a decision to choose all the lifeless revenue in that solitary season in purchase to get Brown’s agreement fully off the publications.

So whilst NFL groups can designate up to two folks as a submit-June 1 designation through launch or trade, it does not do the job if a player retires. Throughout the 2021 offseason, quarterback Drew Brees held off his retirement formally until eventually June in purchase for the New Orleans Saints to spread his $23 million lifeless money cap hit into two various seasons.

Now that we have a extra extensive explanation as to the importance of June 1 in the NFL 12 months, how does this influence the salary cap when it arrives to Stephon Tuitt? Very first, let’s look at what the rest of Tuitt’s contract seemed like prior to his retirement according to overthecap.com:

$9,048,560 base salary
$4,925,750 prorated bonus
$13,975,750 cap strike

2023 to 2025:
$ foundation salary (void yrs)
$1,585,000 prorated bonus (every yr)
$4,755,000 cap strike (all in 2023)

The first issue that stands out from Tuitt’s contract now that he is retired is the far more than $9 million he was owing in foundation salary this season which he will no lengthier obtain. Had Stephon Tuitt retired two months back, all of the dollars from his prorated bonuses would have occur due this year and he would have experienced a lifeless cash strike of $9,680,750. With this amount of money, the Steelers would’ve had a wage cap personal savings of $4,295,000.

Even though lowering the income cap by much more than $4 million looks desirable, with Stephon Tuitt announcing his retirement immediately after June 1 it usually means that only the $4,925,750 in his 2022 prorated reward will rely this season. For that explanation, Tuitt will now help you save the Steelers $9,050,000 towards the wage cap before factoring in roster displacement. After displacement, the price savings will be a minor additional than $8 million.

Whilst it usually appears greater to have a lot more wage cap discounts, this now suggests that the $4,755,000 the place Tuitt was heading to depend in lifeless money in 2023 will continue to keep in location for that yr. If Tuitt had played in 2022 and did not sign a new contract, this is the total of useless funds the Steelers would have experienced owing to the void decades included to his deal very last period when it was restructured. So, if the Steelers were taking into account this dollars in 2023 now, it doesn’t definitely improve just about anything for them heading into up coming offseason.

A single point to remember is that all the income Stephon Tuitt is heading to rely towards the salary cap for the Pittsburgh Steelers is not anything he has still to be compensated. Tuitt has currently collected these paychecks. But as teams typically do with the income cap, this is merely accounting for the money at a later on time which he already acquired.

The biggest sting when it arrives to Stephon Tuitt’s deal is the reality he will have counted for a overall of a lot more than $18 million in the direction of the wage cap unfold in excess of a few seasons from 2021 to 2023 in which he under no circumstances appeared in a game for the Pittsburgh Steelers. While a lot less than fifty percent of that total of $9 million was paid to Tuitt previous year, the remaining $9.2815 million will come in the type of useless money.

For these wanting for how a lot salary cap room the Steelers have after the retirement a Stephon Tuitt, that selection will come in at in excess of $20.5 million assuming there are no other surprises in the process. After to his contract formally comes off the guides, seem for a income cap update listed here at At the rear of The Metal Curtain.

For more on the salary cap implications of Stephon Tuitt’s retirement, check out the most up-to-date episode of the Steelers Stat Geek podcast: