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Salary Caps, Guarantees and Inflexibility Entering Secondary Window

Remember, just because an MLS team signs a DP doesn't mean that he'll actually be playing for that team.

When your local side is struggling, and the league changes the rules to allow up to 3 Designated Players per MLS team, people start to dream. Sounders fans look to DC United's signing of a Montenegran and want a better player. They look to the Kansas City Wizards offering Eidur Gudjohnsen, and want someone even flashier. With Thierry Henry coming to New York Red Bulls, and rumors of Ronaldhino there is a serious case of the wants going on in these parts.

Keep wanting.

The team you have, plus Blaise Nkufo, is the team you have. You see, back when the salary data was released we could get an educated, but not 100% accurate look at the Salary Cap room that each team has. Seattle is in the group of teams that do not have cap space. Sure, there's a chance they have allocation dollars left, but that seems highly unlikely.

Star-divide

Here we find a chart with rough estimates, generally erring on the side of less flexibility by each team. I have adjusted for the KC announcement, but you'll note that several teams are not prepared to enter the Secondary Window with space to add players. Team's would need a prorated portion of $335,000 in order to have enough room to sign a DP (meaning whatever percentage of their season is left at the time of the signing).

Team

Cap Room

DP Slots

Chicago Fire

$200k

2 +1

Chivas USA

$700k

2 +1

Columbus Crew

$400k

2 +1

Colorado Rapids

$300k

2 +1

FC Dallas

$350k

2 +1

DC United

$0

1 +1

Houston Dynamo

$300k

1 +1

Kansas City Wizards

$50k

1 +1

Los Angeles Galaxy

$0

0 +1

New England Revolution

$0

2 +1

New York Red Bulls

$0

0 +1

Philadelphia Union

$700k

2 +1

Real Salt Lake

$350k

2 +1

Seattle Sounders

$0

0 +1

San Jose Earthquakes

$425k

2 +1

Toronto FC

$175k

1 +1

Why would a team enter the Secondary Window without flexibility? Probably because the rules changed after the season started. Just prior to the start of the season, Seattle signed Pat Noonan and made an offer to Jeff Parke. If neither of those players had signed then they would have cap space now, but at the time Adrian Hanauer couldn't know that the DP rule was going to change. Likely, at the time, the thought was that Noonan and Parke were the best use of that cap space. 

At the time, at least one of those signings was a good idea, and the other could be at least justified.

Now, though, Seattle has to deal with little to no Cap space and a likely absence of allocation dollars as well. With the CBA granting guaranteed contracts for players over the age of 23 and with 3 years of service, cutting players just for Cap space isn't really an option. No combination of players without guarantees make enough for Seattle to get DP level room under the Cap.

The only real option for the Sounders to add someone besides Nkufo would be for Fredy Montero to be transferred to another league. This would give Seattle Cap room, and up to $600,000 in allocation dollars that can be spent on player acquisitions. That's really the extent of their options, though.

Anyone else brought on will need to be at the league minimum, and is unlikely to be a difference maker.

Sounders fans will have to watch other teams signing name players and others that are going to be good, though unfamiliar, while Seattle just adds Nkufo and someday gets players back from injury. So when we continually ask whether the problem is the level of Talent on the team, the Tactics implemented by the coaches, failure in Execution or Chemistry we fans must be hoping that it isn't the level of Talent to blame because that isn't going to get a dramatic change.

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That being said

and an apparent lack of talent… how long are we committed to our larger contracts, Where does the cap room come from to upgrade the talent in the off season? I assume that Sounders get nothing if Montero walks at the end of the season?(other than cap room)

"Kia Kaha" -be strong

by Ravengreen on Jun 29, 2010 7:40 AM PDT reply actions  

Lengths of contracts aren't available in same database

Not sure it matters, though, unless a player leaves the league. There’s a pretty good chance that Montero is signed for at least another year and if that’s the case, the Sounders would still be compensated if he’s transferred during offseason.

Because if it's not Love | Then it's the bomb ... | That will bring us together

by Jeremiah Oshan on Jun 29, 2010 7:55 AM PDT up reply actions  

There goes

any plan of getting a CAM DP for the time being unless Montero leaves.

by gstommylee on Jun 29, 2010 8:23 AM PDT reply actions  

Guaranteed Length

Does anyone know if contracts are guaranteed for the length of the contract or just for the remainder of the season?

by DarthGreedo on Jun 29, 2010 9:46 AM PDT reply actions  

Most MLS contracts are for a year or two with an option year or two

We don’t know if the full non-option years are guaranteed, but I expect no.

I am not a Supporter | I am not a Fan | I am a Sounder
Sounder At Heart

by Dave Clark on Jun 29, 2010 9:58 AM PDT up reply actions  

Danger of Guarantees and Salary cap

We are kind of seeing the danger of Guaranteed contracts when combined with a small salary cap. If you get it wrong you have no flexability to makes changes.

by DarthGreedo on Jun 29, 2010 10:25 AM PDT up reply actions  

Guarantee Contracts

might force the teams teams to not give highly paid contracts to non DP players in the future or not decide to not get a DP at all. A DP hit against the cap = the value of 2 or more players depending on the value of their contracts.

I can totally see a change in how much the sounders players are making during the next season or a few of the players being cut for cap reasons.

by gstommylee on Jun 29, 2010 10:38 AM PDT up reply actions  

bleh i mean or decide not to get a DP at all.

by gstommylee on Jun 29, 2010 10:38 AM PDT up reply actions  

Cap hit

I thought that the cap hit for picking up a DP in midseason was only something like 100k, and it wouldn’t suprise me if we could make room for that somehow.

by Michael Belle on Jun 29, 2010 1:58 PM PDT reply actions  

Seattle still has tight cap space anyways. Seattle would have to sell montero in order to have cap space to bring another DP.

by gstommylee on Jun 29, 2010 2:40 PM PDT up reply actions  

It's a prorated total of $335K

So half the season would be a about a $170k hit. Don’t think there are enough nonguaranteed contracts on team to make that kind of room without transferring a player.

Because if it's not Love | Then it's the bomb ... | That will bring us together

by Jeremiah Oshan on Jun 29, 2010 2:48 PM PDT up reply actions   1 recs

Here’s the question does Seattle try to sell Montero and get a CAM DP this summer transfer window or wait until the off season.

by gstommylee on Jun 29, 2010 3:11 PM PDT up reply actions  

This is what I'm hoping for

If we wait until the offseason, very few notable players will be available as free agents, meaining we’ll probably get another retiree.

by Michael Belle on Jun 29, 2010 3:30 PM PDT up reply actions  

I don't think it's that easy

Someone needs to want to sign him. Also, I’m not convinced we’re better off without him. He was out best player on Sunday, IMO.

Because if it's not Love | Then it's the bomb ... | That will bring us together

by Jeremiah Oshan on Jun 29, 2010 3:56 PM PDT up reply actions  

It depends on if we can get a quality CAM DP then it might as well be worth selling Montero especially that 600k in allocation money.

The one issue Seattle will be dealing with this off season is how to fit kufo cap hit into the salary cap budget. That 600k in allocation money will make it quite easy to fit him in and bring down Freddie’s 335k if Seattle renews his contract him or find someone else with that DP slot as well as get a 3rd DP.

by gstommylee on Jun 29, 2010 4:27 PM PDT up reply actions  

Yep

I think you’re right, Montero has been playing a lot better the past two or three games.

by Michael Belle on Jun 29, 2010 7:19 PM PDT up reply actions  

Conclusions to be drawn?

So we can’t really sign anyone this season, DP or not. There’s a lot of cap room that can be opened up for next season looking at our salary list and the number of well paid yet underperforming players, but if we can’t pick up anyone in the Summer transfer window, who’s gonna even be on the market when it comes time to sign new players? I’m trying not to be negative about it, but I think Hanauer has dug himself into a hole.

Thanks Dave for the article.

by Michael Belle on Jun 29, 2010 3:30 PM PDT reply actions  

It seems that the...

FO probably get a mulligan this year because of the CBA and its uncertainty. But the reality is that this squad doesn’t appear to have the talent to compete in the top 4 of the league. They compromised any salary cap flexibilty by adding depth (parke and noonan), who are just duplicates of existing talent.
The FO should not get a mulligan for that. The way to add depth is to add talent and let the depth chart sort its self out. Niether of those 2 signings were an upgrade in talent.

"Kia Kaha" -be strong

by Ravengreen on Jun 29, 2010 3:31 PM PDT reply actions  

Can’t really say they comprised any salary cap flex with parke since hurtado turn his ACL after Seattle signed parke.

by gstommylee on Jun 29, 2010 3:48 PM PDT up reply actions  

I really don't think it's a talent issue

It’s just impossible to discount the role injuries have played.

Because if it's not Love | Then it's the bomb ... | That will bring us together

by Jeremiah Oshan on Jun 29, 2010 3:57 PM PDT up reply actions   1 recs

Sure you can

They had Ianni Graham Scott and wahl on the squad already. When Hurtado goes down, you tweak the line up to see if that will carry you and you still have Parkes cap space. If they can’t, then you have the cap to then sign parke

"Kia Kaha" -be strong

by Ravengreen on Jun 29, 2010 3:56 PM PDT reply actions  

Really don't think Parke's signing is the problem

That prorated $100k still probably wouldn’t clear up enough space to get a DP quality player.

Because if it's not Love | Then it's the bomb ... | That will bring us together

by Jeremiah Oshan on Jun 29, 2010 3:58 PM PDT up reply actions  

Parke and Noonan ate any cap that they had

Even without injuries I doubt that they would be in the top 4 of the league this year. Lacked a legit goal scorer last year and it remains to be seen if Nkufo will fit in quickly. I sure think he can but yoy don’t know.

"Kia Kaha" -be strong

by Ravengreen on Jun 29, 2010 4:15 PM PDT reply actions  

You rather have Graham start at CB when he hasn’t proven he can stay healthy and fit for a MLS match or Parke?

by gstommylee on Jun 29, 2010 4:17 PM PDT up reply actions  

Yep

Montero with 12 goals Jaqua with 8(i believe)

by gstommylee on Jun 29, 2010 9:34 PM PDT up reply actions  

he

"Kia Kaha" -be strong

by Ravengreen on Jun 29, 2010 4:29 PM PDT reply actions  

His contract is guaranteed.He’s finally healthy to where he can start a match so if he is going to prove himself why he should remain on the team, the open cup matches, CCL and friendlies are the time to prove he can stay healthy and fit.

I’m glad we have Graham especially with Hurtado out when it comes to these non MLS matches.

by gstommylee on Jun 29, 2010 4:42 PM PDT up reply actions  

Some teams are starting to release players

without guaranteed contracts.

They only free up half the contract for cap space.

I’ll be updating the table once a week through the Secondary Window.

I am not a Supporter | I am not a Fan | I am a Sounder
Sounder At Heart

by Dave Clark on Jun 29, 2010 5:54 PM PDT reply actions  

CBA and DP rule changes a surprise?

I have a hard time buying into the notion that the FO was caught off guard by the CBA and DP rule changes. Even if it were true, I wouldn’t accept it as an excuse; it’s the FO’s responsibility to deal with the unexpected. If Hanauer’s hands are tied, he certainly helped to cinch the knot. We may just have to be very, very patient.
Thanks to Dave for the informative post and to everyone else for their additions. My CBA/Cap/DP headache is even worse now.

by Eastside Ajacied on Jun 29, 2010 8:49 PM PDT reply actions  

MLS owners didn’t want to give the players guarantee contracts at first.

by gstommylee on Jun 29, 2010 9:33 PM PDT up reply actions  

What about the trade option?

Dave, What if we trade a player like Brad Evans or Peter Vagenes to another MLS team in nead of midfielders for Allocation money? Wouldn’t that open up some space to bring in another DP in the attacking midfield? I think many teams would be in need of a few of our players and if all we need is 175,000 or so in cap room, then I would think that it could be done, along with letting a young guy go. Am I missing something? Can we not trade away a contract or two to someone in need, with cap room?

by Camnehem on Jun 29, 2010 11:38 PM PDT reply actions  

Yes, that's possible

Of course, you need someone willing to take said contracts and Evans isn’t currently healthy and Vagenas only recently returned from injury. Add the fact that both are reasonably well paid by MLS standards (both make $100k+), and it seems unlikely that the Sounders could trade those players.

That said, you are right that trading a player is a conceivable way of opening up cap room. Hanauer has said that this is one of the options the team is exploring (although he has not even hinted at who might be on the trading block).

Because if it's not Love | Then it's the bomb ... | That will bring us together

by Jeremiah Oshan on Jun 29, 2010 11:51 PM PDT up reply actions  

Even a slightly injured Evans would be good

Thanks for the response. I would think that alot of teams would be interested in Evans. We would not want to lose him, except that would allow us to add someone of much better quality. Teams that do not have the pocket books for DP’s, could find this a great way to steal one of the better midfielders in the MLS.

by Camnehem on Jun 30, 2010 12:05 AM PDT up reply actions  

According to a post over on the SoundersFC forum...

…guaranteed contracts are only counted against the salary cap if the player is waived after 7/1. (Yes, they reprinted the actual rule.) So, it would seem that we could, theoretically, waive some players later today (Wednesday) and get their cap room back. I’m not saying the FO would be planning a “Wednesday afternoon massacre,” but it is at least theoretically possible for them to do so.

by regnaD kciN on Jun 30, 2010 12:18 AM PDT reply actions  

Mr. Danger can you link that?

I browsed the forums quickly this morning and can’t find said post. I’m rather surprised that someone found the current CBA rules, as the MLS PA has not released it. They are likely quoting the last CBA.

I suspect this because Ali Gerba was cut months ago and TFC is still on the hook for his salary, and July 1st was the cut date last season.

I am not a Supporter | I am not a Fan | I am a Sounder
Sounder At Heart

by Dave Clark on Jun 30, 2010 6:08 AM PDT up reply actions  

From mls-daily, our total salary this season is $4,215,236.46.

From http://www.mls-daily.com/2010/06/2010-mls-salaries-seattle-sounders-fc.html.

So I’m assuming we were able to go above the $3.55 million mark because we had some leftover allocation money from last season. Some comments that Adrian made in The News Tribune about possibly making Blaise our second DP but wasn’t sure makes me pretty sure we are at $4.2 million, safely above the salary cap because of allocation from last year.

Now, if we do make Blaise a DP, that means he would go from counting as $480,000 against the salary cap to ~$175K since he would be coming in mid-season. That free’s up another $300K, right? Meaning we could grab a third DP (at ~$175K) and still have $125K left over.

Or am I smoking something… ???

by soundersfcfanboy on Jun 30, 2010 5:13 PM PDT reply actions  

However they are doing the math

We’re pretty certain we don’t have cap space right now.

Because if it's not Love | Then it's the bomb ... | That will bring us together

by Jeremiah Oshan on Jul 1, 2010 11:36 AM PDT up reply actions  

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