Why is June 1st an important day in Football?
June 1st is a very important day in Football, because of multiple reasons. According to Danny Kelly of FieldGulls an SB Nation writer, their are two important rules to remember for today. This is what happens:
First, of course, is the salary cap accounting rule known as the “Post June 1st designation.” Per that rule, introduced in 2006, teams are allowed to release two players early in the offseason (thus giving those players the chance to re-sign with a new team before the free agency bonanza is done) while designating him as a post-June 1st cut. This allows the releasing team to pro-rate bonus/dead money over two league year seasons, giving them a little short-term cap relief (instead of having to include all remaining bonus money in the current year). Some teams use this to manage cap room going forward, while others choose to simply eat the full charge of dead money.
The second reason that June 1st is an important date on the NFL calendar is that it marks the first day of the offseason in which signing free agents does not affect the compensatory pick formula.
For example, today the Dallas Cowboys gained 5 million dollars from Miles Austin’s release. This is a major bonus for the Cowboys. Jerry Jones could utilize this money by giving out an extension to someone like Dez Bryant or he could pay to bring in a veteran linebacker to replace Sean Lee.
The bright aide is some teams could make out on salary issues, while others like Ozzie Newsome and the Ravens could go bargain hunting.