When the Detroit Lions released Cameron Sutton earlier this offseason, after the veteran cornerback was wanted on domestic assault charges, many were interested in the financial impact of the move. Sutton had a huge $10.5 million salary guaranteed, and at the time, we gave a good explanation of what would happen next based on what we knew at the time.
This week, we got a little more information about where things stand.
As initially reported, the Lions voided Sutton’s guarantees initially, meaning his $10.5 million would come off the books after June 1 (the release also received a June 1 designation). But according to Over The Cap’s Jason Fitzgerald, Sutton plans to file a grievance over that decision, which is within his rights, and also changes the Lions’ salary commitment to him.
I was told you filed or plan to file a complaint. The way it works is that 40% of the number is loaded to the limit waiting for a result.
-Jason_OTC (@Jason_OTC) June 20, 2024
The next step is arbitration to determine whether the Lions voided those guarantees, rightly or wrongly.
Meanwhile, the Lions will take an additional (perhaps temporary) cap hit. To ensure the Lions don’t try to circumvent the salary cap, a portion of that voided salary will be put back on the books: Under the collective bargaining agreement, 40 percent of the disputed salary (or $4.2 million in this case) must be They will remain on the books until a decision is made in arbitration or until the end of the season. Combined with the $2.18 million prorated signing bonus the Lions are on the hook for anyway, Sutton will count a total of $6.38 million against the cap once his grievance is filed. Over The Cap’s total salary cap number currently reflects those additional salary cap impacts.
Depending on the outcome of the arbitration, which can sometimes take more than a year to complete, the Lions’ cap will be adjusted in the future to reflect the decision. If they rule in favor of the Lions, Detroit will regain cap space next year. If the arbitrator rules in Sutton’s favor and awards the player more than the $4.2 million, the difference will be deducted from the Lions’ future salary cap.
The good news, either way, is that the Lions currently have more than $30 million in cap space and can adapt to whatever decisions are made.
Here is the section of the current Collective Agreement that explains the implications of the wage grievance cap (Article 13, Section 5, subparagraph e)
Complaints. When a player’s salary complaint is filed against a Club, 40% of the amount claimed (or, for a player whose contract qualifies under Article 27, 40% of the player’s salary cap count, prorated to reflect the number of weeks remaining in the regular contract). season) will be counted in the Team Salary until the complaint is resolved or until the end of the League Year, whichever occurs first; at the end of the League Year, if any complaints have been resolved or awards have been made, if the total net complaint amounts paid by the Club exceed the original allocations of 40% and place the Club above the salary cap, the excess to be deducted from the Club Team Salary in the following League Year; If the total net grievance amounts paid are less than the original 40% awards and the Club finishes the season at or below the salary cap by less than the amount of the awards not awarded, the difference will be added to the salary of the club team. by 108 the following league year. If compensation or settlement is awarded for a grievance in a League Year after the grievance was filed, and the grievance amount paid is greater than the original 40% award, the excess will be included in the Team Salary when it is paid; If the claim amount is less than the original 40% allocation, the difference will be deducted from the team’s salary when the award is made.
In short, the Lions will have to pay an additional $4.2 million of Sutton’s previously guaranteed salary until a decision is made on the Lions voiding that salary.
Keynote USA
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