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First national bank of _________ (restructure mechanics)

this is a discussion within the Saints Community Forum; I was listening to Kerwin discuss cap situations for other teams when it all clicked for me. Who is an actual candidate for a restructure to reduce cap load. How that restructure works. Example: Jahri Evans (prime candidate) Remaining present ...

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Old 02-18-2014, 08:13 AM   #1
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First national bank of _________ (restructure mechanics)

I was listening to Kerwin discuss cap situations for other teams when it all clicked for me.

Who is an actual candidate for a restructure to reduce cap load.
How that restructure works.

Example: Jahri Evans (prime candidate)
Remaining present Contract
2014 - 6.8m Salary / 2.2m in Bonus / 2.2m Misc bonus / 11m Cap hit
2015 - 6.8m Salary / 2.2m in Bonus / 2.2m Misc bonus / 11m Cap hit
2016 - 8m salary / 2.2m Misc bonus / 10.2m Cap hit
Total remaining pay out 26.2m

Restructured Deal
2014 - 1m Salary / 3.16m in bonus / 2.2m misc bonus / 6.36m in Cap hit / 4.6m cap relief
2015 - 1m Salary / 3.16m in bonus / 2.2m misc bonus / 6.36m in Cap hit / 4.6m cap relief
2016 - 3m Salary / 1.16m in bonus / 2.2m misc bonus / 8.36m in Cap hit / 3.8m in cap relief
2017 - 5m Salary / 1.16m in bonus / 2.2m misc bonus / 8.36m in Cap hit /
2018 - 7m Salary / 1.16m in bonus / 2.2m misc bonus / 10.36m in Cap hit /

Signing Bonus 5.8m
Misc LTE bonus 11m
Salary 17m
New Contract Value 33.8m
13m in Cap Relief - 7.6m increase in contract value

I can do basically the same deal for Grubbs but at a lower total value and save another 10m total in cap space.

Restructuring those two players nets around 8m in cap relief for 2014. Colston is another candidate.

What you are looking for is a large delta between Salary and Signing bonus yearly prorate. The Salary has to be the larger number. What i did for Evans and Grubbs was cut their 2014 Salary down to 1m each then gave it back to them in Signing bonus for the restructure. I borrowed from this year and am paying it back in the next 4 years plus a Vig for the loan.


Once you understand then you see Tom Brady did not take a hit for the team. Kerwin actually said the patriots of have gone to the Bank of Brady too many times to do it again this year. Brady allows his contract to be restructured and extended because he would collect his Vigorish.
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Old 02-18-2014, 08:17 AM   #2
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Re: First national bank of _________ (restructure mechanics)

Alex Mack, come on down!!!

I just posted this soemwhere else.

Restructure Grubbs and Evans adding a year or two and dropping that cap hit, and sign C Alex Mack. That buys Drew 2 extra seconds and an extra yard to step up into the pocket.
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Old 02-18-2014, 08:27 AM   #3
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Re: First national bank of _________ (restructure mechanics)

I forgot to add, Drew Brees is not a candidate for restructure this year.

He only has around a 3m delta between his Salary and Bonus and restructuring this year may save 2m in space vs restructuring in 2015 where there is a 11m delta and a lot of room to be created.
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Old 02-18-2014, 08:35 AM   #4
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Re: First national bank of _________ (restructure mechanics)

Bunkley, Grubbs and Evans are my top 3 candidates. I'm sure there are a few more who could help.
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Old 02-18-2014, 09:16 AM   #5
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Re: First national bank of _________ (restructure mechanics)

From a quick look that looks great.
Im guessing both would have there guaranteed money prior to the last year larger cap hit when they can be cut?
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Old 02-18-2014, 09:49 AM   #6
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Re: First national bank of _________ (restructure mechanics)

Correct. I believe Drew will sign an extension next year when Cam Jordan is up for re-signing to give Loomis some more ammo.
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Old 02-18-2014, 10:59 AM   #7
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Re: First national bank of _________ (restructure mechanics)

Originally Posted by lee909 View Post
From a quick look that looks great.
Im guessing both would have there guaranteed money prior to the last year larger cap hit when they can be cut?
When you look at 2018 For Evans His Salary + LTBE bonus is 9.2m, his dead money is 1.16m.

If you cut him, you gain the below cap space.

4.8m in 2017
8.04m in 2018

Their signing bonus is paid to them upfront. Since both are looking at 9 years of playing around the end they will welcome the upfront bonus.

There are many ways to tinker with it to make it more appealing to them, some give a little more and some give a little less cap relief.
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Old 02-18-2014, 11:16 AM   #8
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Re: First national bank of _________ (restructure mechanics)

oops

Last edited by TheOak; 02-18-2014 at 12:20 PM..
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Old 02-18-2014, 12:02 PM   #9
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Re: First national bank of _________ (restructure mechanics)

The key is making the last year or two with as little dead money as possible. You need to be able to cut these players at the end of the contracts without to much dead money. Imagine Smith making 13m this year and us having 10m in dead money if we tried to cut him. We could really dig our selves into a hole by extending contracts for players who only have a few good years left.
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Old 02-18-2014, 12:22 PM   #10
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Re: First national bank of _________ (restructure mechanics)

Originally Posted by blackangold View Post
The key is making the last year or two with as little dead money as possible. You need to be able to cut these players at the end of the contracts without to much dead money. Imagine Smith making 13m this year and us having 10m in dead money if we tried to cut him. We could really dig our selves into a hole by extending contracts for players who only have a few good years left.
If you make it too front heavy there is a 50% down rule preventing them from front loading into the first year.
What is the 50% down rule?
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