| FinSaint |
02-17-2013 09:44 AM |
Re: Saints restructure Lofton's deal
Quote:
Originally Posted by joker-saint
(Post 480302)
In that situation I am certain they would just let him go to another team. There has already been alot of talk about if he is even going to be on this years squad. I guess only time will tell, but as it was stated earlier Loomis plans years ahead and I am sure he is prepared for that to happen.
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There in lies the problem with these restructures, because whenever you are converting base salaries into signing bonuses you are, of course, making the base salary cap hit smaller for a particular year(s) and the yearly prorated signing bonus cap hit is usually very acceptable addition to that reduced base salary - especially when we are talking about contracts that have 4+ years still left on them. But the problem arises when those latter year base salaries, which are usually much higher than the initial years' base salaries, start to kick in. If you release the player with such a contract by cutting him, the team will usually lose a lot of cap room because of the prorated signing bonuses will still have to be counted towards the team's salary cap (not all for all the remaining years on the contract, but still a considerable amount when talking about the bigger contracts). And if you find a willing trading partner for such a player, while the other team takes over the responsibility of that player's contract - the original team is still on the hook when it comes to those prorated signing bonuses.
So, like Danno already said, every player wants to restructure their contracts because it means immediate payment to their bank accounts in the form of those signing bonuses and it's good for the team on the short run because through such a moves they can reduce their salary cap for the coming season while pushing a lot of the money to the latter years of a contract - but on the long run it can be very costly because of the scenarios I listed above. |
