Friday, May 1, 2009

Packer Rookie Pool Leaked

JSOnline reports that the Packer rookie pool will be $5,443,396 next season. 

For the record, the rookie salary pool is not (as it is often described) a "cap within a cap."  The rookie pool is completely different from the salary cap---and teams must comply with both. All rookie contracts (inlcuding rookie free agents) count against the rookie pool, but not all rookie contracts will count against the salary cap.  

This is because of the Rule of 51.

During the offseason, only the top 51 salaries on the team (and the pro rata portion of all signing bonuses) count against the salary cap.  In a typical season, most rookie contracts (i.e., lower round picks and rookie free agents)  will not be among the 51 highest on the team during the offseason.  As a consequence, all of the rookie contracts will count against the rookie pool and only a few (typically 3 or 4) will count against the salary cap.

Thus, although the Packers have a rookie pool of $5,443,396 , only a portion of that amount will reduce the salary cap.

The accounting rules are interesting and important when cap numbers are tight.  

Not so important in recent years under Thompson's management.

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