Punishment for Exceeding CAP ********

reported on theScore:

stamps president, ted hellard;

for the first $100 000 over the cap of $3.8 million the fine is $1 for each dollar over

if they get to the second stage, which is any dollars which is over $100 000 - $300 000, that would mean dollars over $3.9 million - $4.2 million, the fine becomes $2 for every dollar over the $3.8 million and loss of first round draft pick.

once a team goes over $300 000 over the $3.8 million cap, is now $3 for every dollar over $4.1million and loss of 2nd round draft pick aswell.

question: what happens to all this money that gets fined from teams?...does it get divided among the teams that stayed under the cap?

[url=http://www.tsn.ca/cfl/news_story.asp?ID=151301&hubName=cfl]http://www.tsn.ca/cfl/news_story.asp?ID ... ubName=cfl[/url]

CFL franchises will operate under a new $3.8-million salary cap this season.

CFL commissioner Tom Wright and Calgary Stampeders owner Ted Hellard unveiled details of the new cap Wednesday, a day after league governors ratified the 14-part agreement by a vote of 7-2 during meetings in Scottsdale, Ariz.

"This new system is designed for the longterm," Wright said. "We expect it to survive all of us . . . and ensure economic stability for our clubs."

The highlight of the agreement is the $3.8-million cap, which is a huge increase from the $2.6 million teams had to operate under last year.

However, Hellard said during a conference call that governors reached the $3.8-million mark after learning that clubs spent an average of $3.75 million on player salaries last year.

"It wouldn't be unfair to disclose that the spread between the top and bottom was $700,000," Hellard said.

CFL governors will re-examine the cap issue in January 2007, at which time they could decide whether to increase or decrease the amount or keep it at $3.8 million.

Teams who finish the season $100,000 over the cap will be fined $1 for each dollar they're over. For those between $100,000 and $300,000 over, the fines increase to $2 for each dollar over along with a first-round draft pick. Teams more than $300,000 over will be fined $3 for each dollar over also lose a first and second-round pick.

While teams will have to adhere to the new cap this year, the league won't begin enforcing payment of fines until next season.

At the end of each season, teams must file papers fully disclosing the salaries they paid to each player, including any side deals. The CFL will also hire compliance officers with auditing backgrounds to help enforce the cap.

The league will also offer financial rewards to players who successfully prove that teams have not reported all salaries.

Teams that don't disclose all side deals will be penalized five per cent of league distribution. A second offence will result in a 10 per cent penalty, with that increasing to 20 per cent on the third occasion.

The CFL also boosted active rosters from 40 players to 46. Teams can have 42 players dressed for each game - again up from 40 - with the extras being one Canadian and a designated import.

The four other players will be those who have minor injuries or are healthy scratches. In past years, teams merely put those players on the one-game injured list as a way of hiding them from the cap.

But the CFL has eliminated the one-game injury list. Now, if a player is hurt, he is placed on a four-game injured list, meaning he's out at least four games and his salary counts against the cap. Upon his return, a team must either place the player on its active roster for at least two games.

Players who are seriously injured can continue to go on the nine-game list and don't count towards the cap.

Practice rosters have also been increased from six to seven players. At least two of those spots must go to Canadian-born players.

The practice roster will be increased to 12 players when NFL teams begin their cuts to allow CFL teams to bring those players in for a look.

I would like to know if they still pay the same salaries or do they have to be adjusted.
When you think of it, If you are going to overspend 100 grand to get the players you want, whats another 100 grand in fines?
Maybe they should start at 10 dollars for every dollar over and work up from there

but an extra 100K probably wont give much improvment on the field...

you'd have to spend over 100K to see improvment in the standings, which would put u in the higher penalty catagory....so spend an extra 200K, and get fined 400K...
now you've spent 600K on 200K worth of improvment....and if the team didnt improve, or an injury occurs, then it was all a waste of alot of money.

Ouch..talk about a hard cap, ro....try enforcing this one first.
It's going to be like pulling teeth..trying to get money from the Cap breakers..

.....if you're gonna pay Jason French 'x' amount of dollars, or could overspend and have Jason Tucker at x+100,000 dollars, you'd see improvement on the field.....

yah but tucker is staying in eskie land

sounds like a far system, and to answer your question Dgod, I think it would go to the other teams, especially the ones that need this cap to survive. Sorry I can't prove my answer on some solid info, but hop fully we can get a good discussion going here.

You are right DG but look at it this way!
Calvillo wants another 100,000 which puts you over the top.
Would you pay $200,000 to keep White off the field?

If some of the owners have that kind of money and don't care about being fined, then Tom Wright should take all money collected and put it right back into the promotion of the league. Maybe even look at new or different T.V. contracts to attain more exposure.

.....you missed the point, RnR/wicky/raw.....whatever your code name is this week.....I see some things never change.....

Yeah, Geo, maybe that's where the fines go, but I wouldn't want to encourage teams to break this cap.

my understanding is white wont be in the cfl next year…and if calvillo wants more, the als need to make adjustments elsewhere or pay the fine…if they pay the fine, they didnt really improve, cuz they are just staying the same ( same roster )…so i dont think other teams would care, since thats why the fines are there…

and what would calvillos options be?..stay with the als at current rate of pay or small raise, or threaten to go to another team, knowing those teams have a cap too???

The point is that you may have to spend more to remain the same.
Anyways I think it is a good system, its just that the penalitys should be higher.
Really make them think twice before breaking the cap

well...they are gonna revise it every year...so its possible it will be more strict in the future....06 season is a saple while at the same time, alowing teams to make the adjustments to try to get under the cap for the 07 season.

after 07 season, they will make adjustments where need be.

lets just be happy FOR NOW.

toronto argos president is gonna be on bob mcowans show in just s little bit to discuss the cap....heres the link, click: listen live.


....side deals can still be hidden.....this is where the whole structure of salary cap gets a little weak....how does a compliance officer come up with information and disclosure. of salaries..other than what is provided by the team and or player.. and if that info. is skewed ....how does he determine that there is a violation of the Cap.....this could be where a 'whistle blower' comes into play...sounds a little clandestine to me....I sure hope this works and ALL TEAMS make every effort to comply... seems like alot of this is dependent only on goodwill and trust....hope it works.... :arrow:

argos prez was just on fan590....he says there are 2 compliance officers who will investigate for a full week in each cfl city on 2 occasions during the year...they will then report to some compliance officer in the league office who will make the penalties stick.

argo prez sounded really really enthused that this has passed and that it passed 7-2....he said the presentation was so much smoother than any had imagined and only a few minor details were changed...accidently confirmed it was BC owner and Montreal owner who voted against the cap.

he was optimistic that the league can go work on growing rather than just surviving.

...will these compliance officers appear unannounced....could be a definite upside if they did....just in case things were 'cooked' in advance to make everything appear legit.........why am I so damn suspicious....must have been my former training in the forces,,,oops too much information.... :wink:

Know kidding paps...were all well trained in CFL protocol...
As long as all captains are on board, and willing to let the CFL brain trust steer the ship.