Examining the salary cap consequences of Dont'a Hightower possibly going on IR

With it looking increasingly evident that Dont'a Hightower may be placed on season-ending injured reserve, we have you covered here at BSJ. Chris Price has addressed the roster composition impact. Now, I'll look at its salary cap implications -- basically, the hope is to illustrate why his injury will not impact the Patriots 2017 salary cap, while it will benefit the Patriots 2018 cap to the tune of $1,914,062.50

Background information



In March, Hightower signed a 4-year, $35.5 million deal with the Patriots that contained significant incentives (46-man active roster bonuses, playing-time, Pro Bowl honors, All-Pro honors). In that contract, his 2017 and 2018 salaries were fully guaranteed, while his 2019 salary was guaranteed for injury only, and will become fully guaranteed on the fifth day of the 2019 NFL league year.

At the time of the deal, his cap numbers were:

2017: $5,335,938
2018: $9,125,000
2019: $10,375,000
2020: $11,375,000

The 2018/19/20 cap numbers are subject to change depending on how many games Hightower was active the previous year and whether or not his incentives were classified Likely to be Earned (LTBE).

Now, let's look at Hightower's incentives.

Since he was active for 13 games in 2016, his $54,687.50 46-man active roster bonus was considered LTBE for 13 games and NLTBE for three games. Hightower has been active for 5 games in 2017. If he misses the rest of the 2017 season, he'll miss out on earning another $492,187.50 in 46-man active roster bonuses. The Patriots will receive a credit of $437,500 (eight games worth of 46-man active roster bonuses) on their 2018 cap because Hightower was active for only 5 games when the Pats salary cap was charged for 13 games. His 2018 cap number will decrease from $9,125,000 to $8,523,438, because in 2018, his 46-man active roster bonus will be considered LTBE for 5 games.

The 2018 Patriots salary cap space number doubly benefits from Hightower's not being active, since his cap number decreases and the Pats salary cap gets a credit. In summary, the 2018 Patriots salary cap space number will increase by $875,000 just from Hightower being inactive for the rest of the 2017 season.

Hightower's 2017 cap number includes $375,000 in 65 percent LTBE playing-time incentives, since he played in 67 percent of the snaps in 2016. Missing the rest of the 2017 season would make it impossible for Hightower to reach this incentive, given that he has only played in 50.2 percent of the defensive snaps. The Pats will then receive a $375,000 credit on their 2018 cap.

Hightower's 2017 cap number includes his LTBE $500,000 Pro Bowl incentive since he was named to the 2016 Pro Bowl. Missing the rest of the 2017 season would make it impossible for Hightower to reach this incentive -- it's almost impossible that he'd be named to the Pro Bowl after playing so few games. The Pats will then receive a $500,000 credit on their 2018 cap.

Hightower had some other incentives in his deal that were classified NLTBE:

-- $250,000 70 percent playing-time incentive

-- $250,000 75 percent playing-time incentive

-- $125,000 80 percent playing time incentive

-- $500,000 AP All-Pro incentive

Since the above incentives were not counting against the 2017 Patriots cap, Hightower not earning them in 2017 will have no impact on the Patriots 2018 salary cap.

Answering some logical follow-up questions:

Q: How much cash would Hightower likely lose if placed on Injured Reserve?
A: A total of $2,492,187.50.

$1,000,000 in playing-time incentives
$500,000 Pro-Bowl incentive
$500,000 All-Pro incentive
$492,187.50 in 46-man active roster bonuses

Q: How much credit will the Patriots receive on their 2018 salary cap if Hightower is indeed placed on Injured Reserve?
A: A total of $1,312,500

$375,000 in playing-time incentives
$500,000 Pro-Bowl incentive
$437,500 in 46-man active roster bonuses

Q: What will be the decrease in his 2018 salary cap number if Hightower is indeed placed on Injured Reserve?
A: $601,562.50 (11 games worth of his 46-man active roster bonus). It was expected in his deal that in 2018 his 46-man active roster bonus would be LTBE for 16 games. Actual number is five.

Q: What will be the total benefit to the Patriots 2018 salary cap number if Hightower is placed on IR?
A: $1,914,062.50. The $601,562.50 decrease in Hightower's 2018 cap number, plus the $1,312,500 credit to the 2018 cap.

Q: What will Hightower's 2018 cap number be? What would it have been if he had earned all of his incentives?
A: Hightower's 2018 cap number will be $8,532,438. If Hightower had been active for all 16 games and earned all of his incentives, it would have been $11,125,000.

Q: When can the Patriots cut Hightower and create significant cap space?
A: After the 2018 season and before his 2019 salary becomes fully guaranteed -- the fifth day of the 2019 League Year.

Q: When can the Patriots trade Hightower and create significant cap space?
A: After June 1, 2018. Doing so would lower both his 2018 and 2019 cap numbers by millions.

One quick reader question before we wrap up...

Q: What do you project the Patriots will have in cap space next year? –
(LJ @Show1)
A: I project both the 2018 Patriots’ adjusted cap number and their 2018 cap space number every week in my weekly incentives tracking report. (You can find my Week 7 report here.) Here's my current estimate for the Patriots 2018 cap space number. Please note that since this estimate will change frequently between today and March 14, 2018 — the first day of the new league year.

League cap: $178,000,000
Prior year carryover: $3,500,000
Adjustment: ($2,300,000)
Patriots adjusted cap: $179,200,000
2018 cap commitment: $161,400,000 (After tendering Ted Karras as an ERFA and signing 10 practice squad players to future contracts, the Patriots should have 56 players signed or tendered for the 2018 season.)
2018 CAP SPACE: $17,800,000

Have a question for a future PatsCap mailbag? You can send those to him at any time via email (patscap@bostonsportsjournal.com), or you can Tweet them to him here.