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Chiefs Chairman and CEO Clark Hunt explains the team’s salary cap standing heading into 2012

With several key in-house contributors slated to hit unrestricted free agency in 2012, and an expectation to be active participants in free agency, the Chiefs have chosen to execute the salary cap “carry over” clause tied to the new CBA.

The Chiefs ranked among the NFL’s top-10 in committed cash last season after signing a number of key free agents, according to Chairman and CEO Clark Hunt. However, the club managed to maintain a $20 million salary cap surplus which will be carried over for potential signings in 2012 and beyond.

Any player re-signed before the start of free agency in March will eat into that surplus.

“We ended last year about 20 million dollars under the salary cap which was a little bit less than has been reported,” Hunt recently told Steven St. John of Sports Radio 810 WHB. “We chose to carry that salary cap space over, which is something that you can do in the new CBA, you can carry it over.

“The reason that we chose to carry it over is we anticipate needing it in 2012 and 2013, both to continue signing our free agents as well as being able to go out and sign some free agents from outside.”

Hunt is referring to Page 96 of the new CBA, which reads…

“(v) Carrying Over Room. A Club may “carry over” Room from one League Year to the following League Year by submitting notice in writing signed by the owner to the NFL no later than fourteen (14) days prior to the start of the new League Year indicating the maximum amount of Room that the Club wishes to carry over. The NFL shall promptly provide a copy of any such notice to the NFLPA. The amount of Room carried over will be adjusted downward based on the final Room available after the year-end reconciliation.”

Essentially, the clause means that the team will receive an extra $20 million toward the 2012 cap number, which has yet to be set.

The surplus could be used to help the team re-sign players like Dwayne Bowe and Brandon Carr.

Pro Bowlers Jamaal Charles, Derrick Johnson and Tamba Hali, as well Brandon Flowers, all signed contract extensions prior to testing free agency. The Chiefs also recently inked Ryan Succop and Brandon Siler to new deals.

“It’s been a very big priority for us,” Hunt said. “When the team headed in a young direction starting back in 2008, one of the things we had in the back of our mind is that when those guys got to the end of their first contract, we wanted to be in a position to retain them if they were they type of players that we wanted for the future.

“We’ve obviously done that with a number of guys over the last several years, we’ve got a couple of key guys this year, we’ll have a couple of key guys next year and that’s just going to be a part of the philosophy. We want guys that start their careers with the Chiefs to play for as long as possible.”

Hunt believes the Chiefs current cap standing has put the team in position to make decisions based on winning and nothing else.

“Money is never a consideration when it comes to rebuilding the football team other than we do have to pay attention to the salary cap,” said Hunt.

Each of the NFL’s 32 teams will have a surplus to spend should they choose to execute the “carry-over” clause. No team used all of their cap room in 2011, though some teams have very little surplus to carry over.

Several teams have already begun releasing players and restructuring contracts to stay within cap limitations.

The Chiefs will also need to dedicate approximately $5 million in 2012 toward signing its rookie class.

“Last year when I was speaking with some of the media about our salary cap situation I told them that this situation is going to change dramatically as we go forward and as we go onto 2012 and 2013,” Hunt said.

“We are going to utilize that cap space and thank goodness we’ve been able to carry over the space that we had into 2011, 2012 and 2013 because it’s really going to help us, it’s going to give us an advantage against other teams that will have to let guys go.”

Yeah I've seen the Chiefs look good on paper before. Oline need a couple of starters and some depth. Charles helps yet we need another GOOD back to compliment him... no Jones and no Battle. I like the Law Firm. Tough between the tackles and has NEVER fumbled the ball as a pro. WR... decent shape there if we get Bowe back.He'll probably get tagged. TE I think we could use at least 2 more... one for blocking and one for when, not if Moeaki gets injured(he has always been plagued by injuries). FB.. gotta resign McClain. QB... the only way we contend is if we get a QB that is BETTER than Cassell. I think Manning is not a realistic option... but I think Orton could be the guy short term. D line... definately a NT and for me the jury is still out on Jackson and Dorsey. I like Dorsey I just don't think he is a 3-4 end... more suited for 4-3 DT( although he has done a decent job for a guy playing out of his natural position). I also like Gilberry but think he's more a 4-3 end and may go elsewhere. LB we are set here. I keep hearing about an upgrade over Belcher but I think he's ok... can't have a superstar at every position as Rust would say. CB... Flowers is locked up.. Carr probably gone IMO... Arenas is a decent nickel... could use a # 2 maybe Routt if Carr leaves... could also use some depth at this pos. Safety... Starters are set.. needs depth. Kicker and punter well they are kickers and punters LOL Coaching.. Romeo should be alright... Daboll... well lets hope that the third time is a charm. G.M and Owner... No comment. Decent team... hell yeah... contenders... not quite.

How are we not close to contending? And the guys you mentioned are going to go to other teams. Some of them even better teams than the Chiefs. And you know what they will do? The same thing they did here, be backups.

I have seen teams that looked good on paper bomb... just look at the 2011 Eagles... and they had a real QB. That Kool aid must taste phenominal!!!!

There's a huge difference between what the eagles did and what the Chiefs are doing.

Especially considering they did that the lockout year.

I'm from the show me state which means you gotta show me that you can consistantly hang w/ the big boys before I call you a contender.

Yeah there are teams that go the spend big route and try to by a championship... typically fails. Then there's the "cheap"(or as others would say "smart")who go the young route. Clean house and take a few years to build up through the draft. Once they have a nice young core and pretty good depth and they are just missing a few key cogs then they hit up free agency for a few bigger names at those positions of need... typically those are the teams that are contenders then.

I do agree with you though, since the majority of fans aren't smart the trying to buy a Championship is the most appealing to them. Well at first, then they are even mad when it didn't work.

The NFL has yet to set a team salary cap for 2012, but teams are expecting it to be about the same as last year: $120,375,000. The Chiefs also have $24,014,337 they didn't use against their 2011 cap that they can use in 2012. So the Chiefs' adjusted salary cap for 2012 is $144,389,337.

Subtracting total salary cap obligations of $107,009,195 (explained below), that leaves the Chiefs with $37,380,142 of available cap room.

Chiefs 2012 Salary Cap Breakdown from KC Star

Lets see him spend it...