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Report: NFL probing 49ers for possible salary cap evasion Posted: Thur July 22, 1999 at 6:58 p.m. EDT ATLANTA (Ticker) -- The San Francisco 49ers are being investigated by the NFL for possible salary cap evasion that could cost the team millions of dollars in fines and draft picks, CNN/SI reported today."We are fully aware the NFL has initiated a salary-cap investigation ... and we are cooperating fully with the NFL," 49ers general manager Bill Walsh told CNN/SI. According to the report, the investigation is expected to find enough evidence that the 49ers funneled money to players outside the parameters of the salary cap. That would lead to a second investigation of the charges -- possibly as early as next month -- by special master Jack Friendethal of George Washington University Law School. If the 49ers illegally circumvented the salary cap in order to compensate players, they could face a $2 million fine and the loss of draft picks. Any players, executives or agents are found to have knowingly evaded cap rules, they could be fined up to $250,000 by NFL commissioner Paul Tagliabue. For as long as the salary cap has been in place, the 49ers have pushed it to its limits. They constantly renegotiate and extend long-term contracts to limit the amount of salary and pro-rated bonus which counts against the cap, a fixed number teams may not exceed. As recently as Wednesday, the Niners signed defensive end Charles Haley to a four-year, $5.6 million deal. The contract included a $1.2 million signing bonus and a base salary of just $400,000, with the final three years voidable if Haley collects a mere half-sack during the 1999 season. According to the report, among the contracts the league is investigating is one signed in 1997 by former 49ers tight end Brent Jones, who was represented by agents Leigh Steinberg and Jeff Moorad. The report said that deal contained a $500,000 completion bonus from a previous contract eveidently forgiven by Jones and the agents. If Jones did receive that money outside the parameters of the salary cap, it would be a violation. Jones and Steinberg were reached by CNN/SI and questioned about the validity of the 1997 deal but had no comment. Sources told CNN/SI that the investigation is centered on deals done during the tenure of former 49ers owner Eddie DeBartolo, who wants to regain control of the team. Those same sources told the network that John York, the husband of current 49ers owner Denise DeBartolo York, recently submitted evidence of payments circumventing the cap to the NFL office. John York would not comment but speculation is that he reported potential wrongdoings of his own team under a previous regime in order to give himself and his wife control of the team. Eddie DeBartolo and sister Denise have been locked in a family feud for ownership and control of the 49ers.
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