There is no dispute. Call it cap confusion.
It's been reported in the media the last two days the Jaguars and Houston Texans were disputing their respective salary cap figures for Tony Boselli, who was selected by the Texans this past Monday in the expansion draft. But there never was a dispute.
Confusion was caused by a $2 million bonus owed Boselli by the Texans on March 1. That bonus was part of a 1999 contract re-structuring between Boselli and the Jaguars. Here's the rest of the story:
The Jaguars guaranteed the $2 million bonus to Boselli. Immediately, that qualified the money as signing bonus, even though payment of it would be deferred until March 1, 2002.
Signing bonus must be amortized evenly over the life of the contract, and the Jaguars amortized the $2 million evenly over their 1999, 2000 and '01 salary caps. In other words, the $2-million bonus the Texans are about to pay Boselli has already made its way through the Jaguars' books.
The simple fact of the matter is the Jaguars will be credited for the $2 million they've already declared. That means the Jaguars will realize a full $8.9 million cap savings on Boselli this year, bringing the Jaguars' total cap savings to $16.9 million for the three players (Boselli, Gary Walker and Seth Payne) they lost to the Texans in Monday's expansion draft.
Houston never disputed the figures. It understood it must assume all of the amortization of the players it selected. Houston's only concern was the manner in which it would have to cap that money, since Boselli is owed another $2-million installment on the first day of the 2003 league calendar year.
In another related matter, the Jaguars did lose $450,000 of '02 cap room when the NFL ruled the Jaguars must retain on their cap the amount of the performance bonus Payne earned last season, since it was a "not-likely-to-be-earned" incentive that was, in fact, earned.