CFL 07 SMS Disclosure

[Rammer]

CFL to shine spotlight on salary-cap system
The Globe and Mail
Fri 25 Apr 2008
Page: S6
Section: Sports
Byline: David Naylor

The Canadian Football League will disclose its salary cap outcome from the 2007 season this Monday, including which teams exceeded the $4.05- million limit and by how much.

Fines and penalties assessed to teams will also be made public at that time.

Such an announcement is a bold step for the league, which put its new salary- management system into effect for the first time last season.

At the time the salary-management system was approved two years ago, there was doubt about the transparency of the process given that the league refused to commit to making its findings public. But it appears the league has decided disclosure to the public is necessary in order to build trust with fans who've often been skeptical of the league's past attempts at salary management.

Several recent reports, citing unidentified sources, have claimed both the Saskatchewan Roughriders and Montreal Alouettes are over the cap, with Montreal being subject to a draft-pick penalty for exceeding the $100,000 threshold.

The 'Riders reported exceeding the cap by $54,000 in their year-end financial statements, which were made public earlier this month, an amount that would make them subject to a dollar-for-dollar fine.

The Alouettes, meanwhile, have gone to arbitration over the case of defensive lineman Steve Charbonneau, who was kept out of action all of last season because of a gastrointestinal illness.

Montreal has argued that the 10-year veteran's salary should not count against the cap because the salary-management system provides no clear way to deal with players who have non-football-related injuries or illnesses.

The Als could have cut Charbonneau but claim that would have denied him medical benefits. The arbitrator's decision will determine whether Montreal will retain the fourth pick in the CFL draft next Wednesday.

[B.C.FAN]

Full disclosure of the audit results is a vast improvement over what was first proposed. It appears the league is listening to fans who demanded to know excatly where each team sits in relation to the SMS limit.

Then, of course, some fan will say they don't believe the audited numbers.

[Wally!]

Anything is an improvement over the old "salary cap minimum" system ...

Good on the league for disclosing. Love how the Riders are over, don't they always cry poor?

[SammyGreene]

The Canadian Football League will disclose its salary cap outcome from the 2007 season this Monday, including which teams exceeded the $4.05- million limit and by how much.

Fines and penalties assessed to teams will also be made public at that time.

So what's the delay?

Haven't seen a news item about it anywhere. The timing makes sense given the draft goes Wednesday but perhaps some teams are still disputing their 2007 spending?

[Rammer]

The Canadian Football League will disclose its salary cap outcome from the 2007 season this Monday, including which teams exceeded the $4.05- million limit and by how much.

Fines and penalties assessed to teams will also be made public at that time.

So what's the delay?

Haven't seen a news item about it anywhere. The timing makes sense given the draft goes Wednesday but perhaps some teams are still disputing their 2007 spending?

Toronto, ON - (April 28, 2008) - Following a comprehensive audit and review process, final results show six of eight teams were under the $4.05 million salary cap for 2007, the first full year of the Canadian Football League's (CFL) new Salary Management System (SMS), the league announced today.

"The cap is real, it's being enforced and it's working," said Commissioner Mark Cohon.

"It's working to ensure our league has a level playing field and a sustainable business model. And it's working in the long term interests of our league, our players and, most importantly, our fans."

The Montreal Alouettes exceeded the salary cap by $108,285, and have been fined $116,570.

Since they exceeded the cap by more than $100,000, they also lose their first round pick (4th overall) in this Wednesday's 2008 CFL Canadian Draft, which can be seen live on TSN.ca and CFL.ca at Noon ET.

That pick will revert to the Hamilton Tiger-Cats at the end of the first round, the team that is first in the order of waiver priority after recording the fewest number of wins last season.

The Saskatchewan Roughriders exceeded the cap by $76,552 and have been fined $76,552.

The British Columbia Lions, Calgary Stampeders, Edmonton Eskimos, Winnipeg Blue Bombers, Toronto Argonauts and Hamilton Tiger-Cats were all under the Salary Expenditure Cap (SEC).

Under the provisions of the SMS, set by the league's Board of Governors, teams are fined one dollar for every dollar they exceed the cap up to 100,000 dollars, and two dollars for every dollar they exceed the cap between 100,000 and 300,000 dollars, plus the loss of the team's first round draft pick. Teams are fined three dollars for every dollar they exceed the SEC beyond $300,000 and they lose their first two draft selections.

Cohon added, "In 2007, the CFL has proven it can operate under a salary management system that ensures competitive balance on the field and greater stability off the field."

"A lot of credit needs to go to our teams for their focus on making this work," said Michael Copeland, the league's Chief Operating Officer. "They realize how important it is to our league and our future."

The salary cap for the upcoming 2008 season has been set at $4.2 million per team.



Updated First Round Selection Order

Hamilton Tiger-Cats
Edmonton Eskimos
Calgary Stampeders
Saskatchewan Roughriders (via Toronto )
B.C. Lions
Winnipeg Blue Bombers
Montreal Alouettes (via Saskatchewan)
Hamilton Tiger-Cats (via Montreal Forfeit)

Not sure why Hamilton should be the benefactor of the Als indiscretions with an additional first round selection.....that has to change.

[Hambone]

One thing of interest I noticed was that the Riders excess per the SMS was different from what they claimed as per their financial statement. Not a big deal IMHO but it shows that one cannot necessarily take financial statement figures as being definitive when it comes to SMS. That's not a knock on the Riders but rather an observation that there can be things that any of the teams through normal accounting procedures would not expense as salaries but could nonetheless count as SMS costs.

[Bosco]

Allotting an additional first round pick to Hamilton really doesn't make sense. Trying to figure out the logic of that ruling.

Taking it a step further, can we also assume that Hamilton will also have the first pick (9th overall) in the second round?

[Solar Max]

Allotting an additional first round pick to Hamilton really doesn't make sense. Trying to figure out the logic of that ruling.

Taking it a step further, can we also assume that Hamilton will also have the first pick (9th overall) in the second round?

They have picks 1,8,9.

The forfeited pick should have gone onto the end of the 6th round, IMO. Same amount of kids get drafted, just less blatant help to the TiCats.

[Rammer]

Allotting an additional first round pick to Hamilton really doesn't make sense. Trying to figure out the logic of that ruling.

Taking it a step further, can we also assume that Hamilton will also have the first pick (9th overall) in the second round?

They have picks 1,8,9.

The forfeited pick should have gone onto the end of the 6th round, IMO. Same amount of kids get drafted, just less blatant help to the TiCats.

Well it was instituted prior to Hamilton finishing last, but I agree that it makes only one team benefit from the Als loss of a 1st round pick. In fact in reality I have pointed out that the Esks and Stamps won't see the light of day on any benefit like the Lions, as their draft positions are not affected in the two/three spot and past the pick will have been used by Hamilton in the eighth positon. Crazy and very CFL'ish if you ask me.

[Hambone]

Not sure why Hamilton should be the benefactor of the Als indiscretions with an additional first round selection.....that has to change.

Apparently that's the way they decided it should be done. I would imagine if there was another team who had to forfeit a pick then Edmonton or whomever was next in line and under the cap would've picked up the additional selection. If 4 teams were over then the other 4 would all gain an extra pick.

I don't have a problem with that concept. If they didn't do this then while the Als lost their original 1st rounder each of their remaining picks would've moved up a spot. Given they have the Riders' 1st they benefitted in that regard as their 8th overall became 7th overall, but at least the rest stay the same. It might not seem like much but given a scenario where 4 teams had to forfeit their 1st then all subsequent picks would move up 4 spots which would greatly erode the penalty to all offenders. If there were 3 other culprits then Montreal's 2nd rounder could've turned into the equivalent of a 1st. By ensuring someone else utilizes the missing spot albeit at the tail end of the round all picks 2nd round and beyond stay where they are.

[joesports]

Full disclosure of the audit results is a vast improvement over what was first proposed. It appears the league is listening to fans who demanded to know excatly where each team sits in relation to the SMS limit.

Then, of course, some fan will say they don't believe the audited numbers.

I agree this is a vast improvement over the past.

I think that the only "fans" that will complain will be the Rider Fans. It seems that no matter what, BC somehow managed to "hide" salaries. If the teams did not have to file contracts with the League and if they did not disclose the audit results it would make it more plausible for someone to be creative in their accounting. I believe Wally did the right thing by signing all those guys right before the Cup and before the SMS took effect so that their bonus or whatever could be accounted for before the new cap. It was a smart move on our part.

I move that there should be an * put beside the Saskatchewan Grey Cup win to signify that they chose to break the SMS.

[ziggy]

Good to see the move towards spending transparency and a penalty for those who break the rule. As previously stated though there will always be some fans who disbelieve the results, but you have to start somewhere. I'm sure the teams that were fined will be keeping the other teams honest!

[lion24]

Here comes all the talk of Lions players getting paid "under the table" by Braley...........

[Solar Max]

Here comes all the talk of Lions players getting paid "under the table" by Braley...........

Piped in noise first.

Priorities. 8)

[lion24]

Here comes all the talk of Lions players getting paid "under the table" by Braley...........

Piped in noise first.

Priorities. 8)

ooh, that's tough Solar Max...........they may run neck and neck??