NFL: Indianapolis Colts Playing With House Money

Trent Richardson arrives at Colts facility after being traded
by the Cleveland Browns. Photo credit NFL

by Chad Jones

Per the 2011 Collective Bargaining Agreement (CBA), a 'Minimum Team Cash Spending' provision mandates every team spends 89% of Cap Space over two  4 year windows, (2013-2016) & (2017-2020). 

Drew Brees stated on this CBA Provision in an E-Mail per Pro Football Talk:

"It doesn’t matter how high the cap is if they are only going to spend that much.  So with a minimum in place, it requires all teams to be at or above that minimum.  More money in players pockets.”

The cash aspect inhibits creative accounting, 89% of available space must be spent in actual cash. 

With the Cap remaining relatively flat since the 2011, it's set to increase significantly when the $ 27 Billion television deal kicks in next season. Whereas the 2013 Cap increased to 123.0 M from 120.6 M, a rise of slightly under 2%, the cap should increase by roughly 3-5% annually over the CBA's duration.

Projected Salary Cap: 

2013: 123.0 M (Actual) 

2014: 127.0 M

2015: 130.0 M

2016: 132.0 M

Total: 512.0 Million

The 89% provision doesn't mandate which year teams spend, but requires 89% of the $ 512 Million to be spent over the 2013-2016 window, or $ 455.6 Million.

 

Teams must manage this provision, taking into account present & future considerations. The Colts spent significant actual Cash in 2013 at 97.6% of the cap. The Colts are chasing a Title early in Andrew Luck's career on the surface, and did not want to wait until the latter portion of the 2013-2016 window to allocate significant cash. Herein lies why the team can hand Erik Walden ridiculous money (Relativity Sports), Hasselbeck (Athletes First) can be given a lucrative deal, Jean-Francois (JL Sports) can garner an above market rate pact & Darrius Heyward-Bey (CAA) can earn $ 2.5 Million. 

If the Colts had not entered the Free Agent foray, they would've been forced to guarantee overwhelming money to a talent depleted roster via extensions to appease the 89% mandate. More specifically, players selected in 2012 & 2013 would've landed eye-popping contracts when their extension windows open, hamstringing the teams salary cap during the 2017-2020 window. The Colts have no misconceptions, it's unlikely they win a Super Bowl while Luck's learning the league. It must happen during his prime when he reaches the Peyton Manning level- the period spanning 2017-2022, when Andrew is 28-33. 

Andrew will command a 2nd Contract paying him $ 15 to $ 20 Million of average annual value. That will dramatically change the team's salary cap structure, and force emphasis on drafting & developing talent to supplement the roster. To have a clean cap in the 2nd CBA Window (2017-2020), the Colts had to spend in the early stages of the first period to avoid cap ramifications in the stage of the Life Cycle when they anticipate winning a Lombardi Trophy. 

Grigson talks about making 'Colts' decisions constantly. Currently, their ambivalence to the value of draft picks is apparent. Trading away last years 2nd Rounder for Vontae Davis was a questionable move, as is sacrificing a 1st on Richardson. If the cap structure featured a $ 20 Million Quarterback atop, it would be considered reckless. But the reality is, the Colts have a cheap & relatively talent lacking roster. This affords them the opportunity to be heavy spenders in Free Agency (Retail Market), and not be opposed to sacrificing talent finding opportunities in the draft (Wholesale Market). 

The Colts will begin valuing draft picks when it's prudent, and that will be in a time when the league landscape has drastically changed. Gone from the AFC will be Brady & Manning. Roethlisberger, Rivers & Schaub will have left their primes. That's the period at which Andrew Luck & the Colts organization envisions winning a Championship. And currently, they're just playing with House Money. 

2013 UFA Signings: 

QB Matt Hasselbeck -37- (2 Years 7.25 M w/ 3.0 M Guaranteed) 

RB Ahmad Bradshaw -27-  (1 Year 2.0 M w/ 250 K Guaranteed) 

WR Darrius Heyward-Bey -26- (1 Year 2.5 M w/ 1.5 M Guaranteed) 

OT Gosder Cherlius -29-  (5 Years 35.0 M w/ 15.5 M Guaranteed) 

OG Donald Thomas -27-  (3 Years 14.0 M w/ 3.5 M Guaranteed) 

DL Ricky Jean-Francois -26-  (4 Years 22.0 M w/ 6.5 M Guaranteed) 

NT Aubrayo Franklin -33- (1 Year 1.105 M w/ 165 K Guaranteed) 

LB Lawrence Sidbury -27-   (1 Year 780 K w/ 65 K Guaranteed) 

LB Erik Walden -28-  (4 Years 16.0 M w/ 8.0 M Guaranteed) 

CB Greg Toler -28-  (3 Years 14.25 M w/ 5.0 M Guaranteed) 

S LaRon Landry -28-  (4 Years 24.0 M w/ 11.0 M Guaranteed) 

2013 Resignings: 

DE Fili Moala -28-  (1 Year 850 K w/ 0 Guaranteed) 

CB Darius Butler -27-  (2 Years 4.0 M w/ 2.0 M Guaranteed) 

CB Cassius Vaughn -27-  (1 Year 1.323 M w/ 0 Guaranteed) 

P Pat McAfee -26-  Franchise Tag (1 Year 2.977 M Fully Guaranteed) 

Acquired via Trade: 

RB Trent Richardson -22-

WR David Reed -26- 

2013 Cash Numbers: 

QB Matt Hasselbeck (5.0 M) 

RB Ahmad Bradshaw (2.0 M) 

RB Trent Richardson (1.321 M) 

WR Darrius Heyward-Bey (2.5 M) 

WR David Reed (1.13 M) 

OT Gosder Cherlius (15.5 M) 

OG Donald Thomas (3.5 M) 

DL Ricky Jean-Francois (4.0 M) 

LB Erik Walden (4.0 M) 

CB Greg Toler (5.0 M) 

S LaRon Landry (11.0 M) 

CB Darius Butler (2.0 M)

CB Casius Vaughn (1.323 M)

P Pat McAfee (2.977 M)