Taysom Hill creates $7.75 million in cap space with special accounting restructuring

gosaints1 · 03-15-2021, 11:41 AM

Originally Posted by AsylumGuido

Exactly! Dead money is the accounting for cash paid out previously in the form of signing bonuses. It isn't payment for people not doing work for you. It is the accounting for what you have already paid people for work already done.

If you were to hire a contractor to do an addition on your house for $50,000 and had to pay him cash at the time of completion you could take out a loan. Let's say it's a five year loan and you pay back $10,000 each year. All the work was completed in year one. It's much the same as dead money. Nobody is doing the work in years two through five but you are still having to account for the money that the contractor has already received.

Dead cap is not wasted cap unless it is guarantees (other than original signing bonus or converted roster bonus) attached to a player released from an initial contract. There are not many of those as it would be basically guaranteed salary which is extremely rare in NFL contracts. In that case all the work wasn't done. But in the case of restructured or extended contracts it usually does apply to work done with accounting pushed out into the future.

From Andrew Brandt:

“Dead money is cap accounting for players no longer on a team’s roster, “dead weight” that hamstrings teams from signing “live” players. We have now seen—within the last month—the two largest dead-money charges in NFL history in Jared Goff and Carson Wentz. These contracts were structured as if there was no way on God’s green earth the teams would exit them early—with tens of millions of future proratable monies (large signing bonuses, guaranteed option and roster bonuses, etc.) pushed out into future years as unamortized proration. Therein lies the rub. When a player separates—through release or trade—all unamortized proration accelerates on the team’s cap.”

https://www.si.com/nfl/2021/03/02/bu...cap-dead-money

It’s “dead-weight”, and prevents you from signing active players. Right now, as we speak, we ARE paying >10% of our salary cap..., on players who aren’t playing for us.

Describe it how you would like but it’s unambiguously a waste of money..., and “dead weight”.

jeanpierre · 03-15-2021, 11:48 AM

Originally Posted by gosaints1

From Andrew Brandt:

“Dead money is cap accounting for players no longer on a team’s roster, “dead weight” that hamstrings teams from signing “live” players. We have now seen—within the last month—the two largest dead-money charges in NFL history in Jared Goff and Carson Wentz. These contracts were structured as if there was no way on God’s green earth the teams would exit them early—with tens of millions of future proratable monies (large signing bonuses, guaranteed option and roster bonuses, etc.) pushed out into future years as unamortized proration. Therein lies the rub. When a player separates—through release or trade—all unamortized proration accelerates on the team’s cap.”

https://www.si.com/nfl/2021/03/02/bu...cap-dead-money

It’s “dead-weight”, and prevents you from signing active players. Right now, as we speak, we ARE paying >10% of our salary cap..., on players who aren’t playing for us.

Describe it how you would like but it’s unambiguously a waste of money..., and “dead weight”.

And it wasn't an issue of rolling debt forward till this year; and it's not like the GM or HC would be fired for mismanagement; and if they were, it's the next guys' problem...

But Now local media with premium access to the team were encouraged to report to the ignorant masses that no one could foresee such a Black Swanevent...

Yeah, business owners across South Louisiana haven't experienced such events (e.g. #HurricaneKatrina, #MacondoProspect, #WuhanPandemic...

jeanpierre · 03-15-2021, 11:53 AM

Originally Posted by SmashMouth

Cap management is a silly game based on how it's structured. It is what it is. I'm still glad we have it. It benefits smaller market teams bigly.

Well, until the available cap money runs out...

SmashMouth · 03-15-2021, 11:56 AM

Originally Posted by jeanpierre

Well, until the available cap money runs out...

Declines in revenue have already begun. Reductions in cap are sure to follow.

gosaints1 · 03-15-2021, 12:23 PM

Originally Posted by jeanpierre

And it wasn't an issue of rolling debt forward till this year; and it's not like the GM or HC would be fired for mismanagement; and if they were, it's the next guys' problem...

But Now local media with premium access to the team were encouraged to report to the ignorant masses that no one could foresee such a Black Swanevent...

Yeah, business owners across South Louisiana haven't experienced such events (e.g. #HurricaneKatrina, #MacondoProspect, #WuhanPandemic...

Completely absent ownership - the exact opposite of Jerruh in Big D.

And trust me, that next guy - oof, when it does happen, and at some point it will - It’s going to be ugly for at least two solid years in a row. Paralysis ugly.

AsylumGuido · 03-15-2021, 01:19 PM

Originally Posted by SmashMouth

Declines in revenue have already begun. Reductions in cap are sure to follow.

Cap is directly related to revenue. This year is the first time since the cap was instigated that revenues were down from the previous year and it was directly related to the loss in game day revenues due to COVID-19 restrictions. Those gameday revenues will return this year. However, the vast majority of revenues come from broadcast contracts and those are expected to DOUBLE over the last round of contracts from back in 2013.

The cap will be rising faster than ever and is expected to top $300 million by the middle of this decade. That is a fact.

AsylumGuido · 03-15-2021, 01:33 PM

Originally Posted by gosaints1

From Andrew Brandt:

“Dead money is cap accounting for players no longer on a team’s roster, “dead weight” that hamstrings teams from signing “live” players. We have now seen—within the last month—the two largest dead-money charges in NFL history in Jared Goff and Carson Wentz. These contracts were structured as if there was no way on God’s green earth the teams would exit them early—with tens of millions of future proratable monies (large signing bonuses, guaranteed option and roster bonuses, etc.) pushed out into future years as unamortized proration. Therein lies the rub. When a player separates—through release or trade—all unamortized proration accelerates on the team’s cap.”

https://www.si.com/nfl/2021/03/02/bu...cap-dead-money

It’s “dead-weight”, and prevents you from signing active players. Right now, as we speak, we ARE paying >10% of our salary cap..., on players who aren’t playing for us.

Describe it how you would like but it’s unambiguously a waste of money..., and “dead weight”.

You can look at it as "dead weight", if you wish, but it is definitely accounting for services already rendered in the form of signing bonuses and converted roster bonuses. These bonuses are not pay to play. They are pay to be on the roster at the time of payment. Pay to play is salary and salary is not "dead weight/dead money" because it not guaranteed.

Dead money is simply cap used in a prior period. It is not wasted cap. And given the fact that the cap will continue to rise annually (COVID-19 2021 is the lone exception), anything pushed to a future period signifies a lower and lower percentage of the total cap the further out it is pushed. It is perfectly sound cost accounting management. You get more bang for your buck than with same period accounting.

It is the same reason why businesses borrow money for operations, as opposed to using cash on hand, in a revenue growth environment where the revenue grows at a faster pace than the interest on the borrowed funds.

gosaints1 · 03-15-2021, 02:58 PM

Originally Posted by AsylumGuido

You can look at it as "dead weight", if you wish, but it is definitely accounting for services already rendered in the form of signing bonuses and converted roster bonuses. These bonuses are not pay to play. They are pay to be on the roster at the time of payment. Pay to play is salary and salary is not "dead weight/dead money" because it not guaranteed.

Dead money is simply cap used in a prior period. It is not wasted cap. And given the fact that the cap will continue to rise annually (COVID-19 2021 is the lone exception), anything pushed to a future period signifies a lower and lower percentage of the total cap the further out it is pushed. It is perfectly sound cost accounting management. You get more bang for your buck than with same period accounting.

It is the same reason why businesses borrow money for operations, as opposed to using cash on hand, in a revenue growth environment where the revenue grows at a faster pace than the interest on the borrowed funds.

”...salary is not "dead weight/dead money" because it not guaranteed”

Incorrect, salaries can be anything all the way up to “fully guaranteed”. - From the NFL’s web page defining “Dead Money”:

Dead money: Refers to salary a team has already paid or has committed to paying (i.e., a signing bonus, fully guaranteed base salaries, earned bonuses, etc.) but has not been charged against the salary cap.

https://www.nfl.com/news/2020-nfl-fr...p3000001106817

Andrew Brandt was the Packer’s Vice President of Finance, he was a key member in managing a cap for over a decade. Actually, he managed the transfer of contracts from Brett Favre to Aaron Rodgers. I trust him when he says the following:

“Dead money is cap accounting for players no longer on a team’s roster, “dead weight” that hamstrings teams from signing “live” players.”

&

Cap gurus magically create cap room by moving it into future years.

“No. You could do that and, sorry, no, you wouldn’t be a cap guru. You could take a big salary or a big bonus (not currently prorated), turn it into signing bonus (prorated) and, in the stroke of the player’s pen, cap room would magically appear and the problem would be deferred, although not solved.”

And I trust the NFL’s def’n of “dead money” above. We can debate the philosophical differences in managing an NFL team’s cap, but the def’n of dead money is defined, unambiguously, by the NFL. Seriously..., do you just wake up in the morning and decide to make crap up?

AsylumGuido · 03-15-2021, 05:05 PM

Originally Posted by gosaints1

”...salary is not "dead weight/dead money" because it not guaranteed”

Incorrect, salaries can be anything all the way up to “fully guaranteed”. - From the NFL’s web page defining “Dead Money”:

Dead money: Refers to salary a team has already paid or has committed to paying (i.e., a signing bonus, fully guaranteed base salaries, earned bonuses, etc.) but has not been charged against the salary cap.

https://www.nfl.com/news/2020-nfl-fr...p3000001106817

Andrew Brandt was the Packer’s Vice President of Finance, he was a key member in managing a cap for over a decade. Actually, he managed the transfer of contracts from Brett Favre to Aaron Rodgers. I trust him when he says the following:

“Dead money is cap accounting for players no longer on a team’s roster, “dead weight” that hamstrings teams from signing “live” players.”

&

Cap gurus magically create cap room by moving it into future years.

“No. You could do that and, sorry, no, you wouldn’t be a cap guru. You could take a big salary or a big bonus (not currently prorated), turn it into signing bonus (prorated) and, in the stroke of the player’s pen, cap room would magically appear and the problem would be deferred, although not solved.”

And I trust the NFL’s def’n of “dead money” above. We can debate the philosophical differences in managing an NFL team’s cap, but the def’n of dead money is defined, unambiguously, by the NFL. Seriously..., do you just wake up in the morning and decide to make crap up?

If you read back earlier you will see that I said that on rare occasions salaries can be guaranteed and in those cases can be part of dead money.

What I have stated is perfectly in line with the definition that you posted for "dead money". Note that my references to salary is the same as base salary (as opposed to bonuses). Except for the caveat of guaranteed future base salary (as I myself stressed earlier) all amounts making up "dead money" are for services already rendered. That includes the service of signing the original contract and the service of being on the roster as of a certain date in the case of that roster bonus being converted to a signing bonus for proration purposes.

I know exactly what I am talking about and I don't make crap up. I understand the displeasure associated with accounting for those expenditures later, but it is the same as the case with your contractor. You wish you didn't have to make those payments in years two through five, but the work was done.

The only legitimate gripe you can have in the case of dead money is indeed unearned future guaranteed salary. One more point is that not all guaranteed salaries are included in dead money. One common use of salary guarantees is date driven. Instead of game day distribution the contract can guarantee each year's salary for the entire season on say the second day of the league year. In that case that one year of the base salary could be part of the accounted for dead money if the player was released/traded/retired/died after that date. One could argue, however, that it was contractually "earned" by being on the roster at that date, much like the roster bonus.

But, as I stated the vast majority of all dead money HAS been earned already.

While some people thrill in the draft I have been a fan of the cap and contract side for years. My degree is in Accounting and my most favorite field of accounting has always been cost accounting. That is the basis for cap management. I take it as a personal insult being accused of waking up in the morning and deciding to make crap up. I understand that some of these concepts are difficult for some to comprehend. That's why people like Andrew Brandt choose to give as simplistic an explanation as possible for the term "dead money" when asked "why are we paying someone who isn't on the team anymore?" I totally respect Brandt. He's one of my favorite experts on the business side of the NFL. I've learned quite a bit from him on the subject. He's on NFL Radio multiple times a week especially this time of the year.

gosaints1 · 03-15-2021, 06:32 PM

[QUOTE=AsylumGuido;916219]...

1) Neither our education level nor our career field is important to the discussion. Neither can be verified here, and frankly I doubt you would be authentic regardless.

2) Anyone with an ethnic slur as their forum tag shouldn’t have such thin skin, or whine when someone “offends” them. You’ve attacked others so often here that many have completely blocked you. Attacking others is what you do.

“One of the things I am most proud of from my time in Green Bay is resisting temptation to play the “prorate/push out” cap game with Brett Favre. I learned from what I had seen at that time around the league, noting huge dead-money charges when franchise quarterbacks separated, including John Elway, Troy Aikman, Steve Young, Dan Marino, Steve McNair and more. I knew at some point we would not have Brett; I did not want to burden the future front office and the future quarterback (who turned out to be Aaron Rodgers) with a $20-plus million cap charge for someone not there. Brett was ultimately traded with a final dead-money charge to the team of $600,000. Sorry for the not-at-all-humble brag, but you get my point.”

Apparently you haven’t learned enough from Mr. Brandt.

03-15-2021, 11:41 AM	#11
gosaints1 500th Post Join Date: Mar 2012 Posts: 576	Re: Taysom Hill creates $7.75 million in cap space with special accounting restructuring Originally Posted by AsylumGuido Exactly! Dead money is the accounting for cash paid out previously in the form of signing bonuses. It isn't payment for people not doing work for you. It is the accounting for what you have already paid people for work already done. If you were to hire a contractor to do an addition on your house for $50,000 and had to pay him cash at the time of completion you could take out a loan. Let's say it's a five year loan and you pay back $10,000 each year. All the work was completed in year one. It's much the same as dead money. Nobody is doing the work in years two through five but you are still having to account for the money that the contractor has already received. Dead cap is not wasted cap unless it is guarantees (other than original signing bonus or converted roster bonus) attached to a player released from an initial contract. There are not many of those as it would be basically guaranteed salary which is extremely rare in NFL contracts. In that case all the work wasn't done. But in the case of restructured or extended contracts it usually does apply to work done with accounting pushed out into the future. From Andrew Brandt: “Dead money is cap accounting for players no longer on a team’s roster, “dead weight” that hamstrings teams from signing “live” players. We have now seen—within the last month—the two largest dead-money charges in NFL history in Jared Goff and Carson Wentz. These contracts were structured as if there was no way on God’s green earth the teams would exit them early—with tens of millions of future proratable monies (large signing bonuses, guaranteed option and roster bonuses, etc.) pushed out into future years as unamortized proration. Therein lies the rub. When a player separates—through release or trade—all unamortized proration accelerates on the team’s cap.” https://www.si.com/nfl/2021/03/02/bu...cap-dead-money It’s “dead-weight”, and prevents you from signing active players. Right now, as we speak, we ARE paying >10% of our salary cap..., on players who aren’t playing for us. Describe it how you would like but it’s unambiguously a waste of money..., and “dead weight”. SmashMouth, jeanpierre and K Major like this.
gosaints1 500th Post Join Date: Mar 2012 Posts: 576

03-15-2021, 11:48 AM	#12
jeanpierre Site Donor 2018 Join Date: Mar 2008 Location: Thibodaux Posts: 43,543 Blog Entries: 39	Re: Taysom Hill creates $7.75 million in cap space with special accounting restructuring Originally Posted by gosaints1 From Andrew Brandt: “Dead money is cap accounting for players no longer on a team’s roster, “dead weight” that hamstrings teams from signing “live” players. We have now seen—within the last month—the two largest dead-money charges in NFL history in Jared Goff and Carson Wentz. These contracts were structured as if there was no way on God’s green earth the teams would exit them early—with tens of millions of future proratable monies (large signing bonuses, guaranteed option and roster bonuses, etc.) pushed out into future years as unamortized proration. Therein lies the rub. When a player separates—through release or trade—all unamortized proration accelerates on the team’s cap.” https://www.si.com/nfl/2021/03/02/bu...cap-dead-money It’s “dead-weight”, and prevents you from signing active players. Right now, as we speak, we ARE paying >10% of our salary cap..., on players who aren’t playing for us. Describe it how you would like but it’s unambiguously a waste of money..., and “dead weight”. And it wasn't an issue of rolling debt forward till this year; and it's not like the GM or HC would be fired for mismanagement; and if they were, it's the next guys' problem... But Now local media with premium access to the team were encouraged to report to the ignorant masses that no one could foresee such a Black Swanevent... Yeah, business owners across South Louisiana haven't experienced such events (e.g. #HurricaneKatrina, #MacondoProspect, #WuhanPandemic...

03-15-2021, 11:53 AM	#13
jeanpierre Site Donor 2018 Join Date: Mar 2008 Location: Thibodaux Posts: 43,543 Blog Entries: 39	Re: Taysom Hill creates $7.75 million in cap space with special accounting restructuring Originally Posted by SmashMouth Cap management is a silly game based on how it's structured. It is what it is. I'm still glad we have it. It benefits smaller market teams bigly. Well, until the available cap money runs out... SmashMouth, gosaints1 and K Major like this.

03-15-2021, 11:56 AM	#14
SmashMouth I donated, did you? Join Date: Sep 2007 Location: Mandeville, LA Posts: 38,123 Blog Entries: 29	Re: Taysom Hill creates $7.75 million in cap space with special accounting restructuring Originally Posted by jeanpierre Well, until the available cap money runs out... Declines in revenue have already begun. Reductions in cap are sure to follow.

03-15-2021, 12:23 PM	#15
gosaints1 500th Post Join Date: Mar 2012 Posts: 576	Re: Taysom Hill creates $7.75 million in cap space with special accounting restructuring Originally Posted by jeanpierre And it wasn't an issue of rolling debt forward till this year; and it's not like the GM or HC would be fired for mismanagement; and if they were, it's the next guys' problem... But Now local media with premium access to the team were encouraged to report to the ignorant masses that no one could foresee such a Black Swanevent... Yeah, business owners across South Louisiana haven't experienced such events (e.g. #HurricaneKatrina, #MacondoProspect, #WuhanPandemic... Completely absent ownership - the exact opposite of Jerruh in Big D. And trust me, that next guy - oof, when it does happen, and at some point it will - It’s going to be ugly for at least two solid years in a row. Paralysis ugly.
gosaints1 500th Post Join Date: Mar 2012 Posts: 576

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03-15-2021, 01:19 PM	#16
AsylumGuido 10000 POST CLUB Join Date: Sep 2007 Location: Bossier City, LA Posts: 26,173	Re: Taysom Hill creates $7.75 million in cap space with special accounting restructuring Originally Posted by SmashMouth Declines in revenue have already begun. Reductions in cap are sure to follow. Cap is directly related to revenue. This year is the first time since the cap was instigated that revenues were down from the previous year and it was directly related to the loss in game day revenues due to COVID-19 restrictions. Those gameday revenues will return this year. However, the vast majority of revenues come from broadcast contracts and those are expected to DOUBLE over the last round of contracts from back in 2013. The cap will be rising faster than ever and is expected to top $300 million by the middle of this decade. That is a fact.
	“The pessimist sees difficulty in every opportunity. The optimist sees the opportunity in every difficulty.” — Winston Churchill

03-15-2021, 01:33 PM	#17
AsylumGuido 10000 POST CLUB Join Date: Sep 2007 Location: Bossier City, LA Posts: 26,173	Re: Taysom Hill creates $7.75 million in cap space with special accounting restructuring Originally Posted by gosaints1 From Andrew Brandt: “Dead money is cap accounting for players no longer on a team’s roster, “dead weight” that hamstrings teams from signing “live” players. We have now seen—within the last month—the two largest dead-money charges in NFL history in Jared Goff and Carson Wentz. These contracts were structured as if there was no way on God’s green earth the teams would exit them early—with tens of millions of future proratable monies (large signing bonuses, guaranteed option and roster bonuses, etc.) pushed out into future years as unamortized proration. Therein lies the rub. When a player separates—through release or trade—all unamortized proration accelerates on the team’s cap.” https://www.si.com/nfl/2021/03/02/bu...cap-dead-money It’s “dead-weight”, and prevents you from signing active players. Right now, as we speak, we ARE paying >10% of our salary cap..., on players who aren’t playing for us. Describe it how you would like but it’s unambiguously a waste of money..., and “dead weight”. You can look at it as "dead weight", if you wish, but it is definitely accounting for services already rendered in the form of signing bonuses and converted roster bonuses. These bonuses are not pay to play. They are pay to be on the roster at the time of payment. Pay to play is salary and salary is not "dead weight/dead money" because it not guaranteed. Dead money is simply cap used in a prior period. It is not wasted cap. And given the fact that the cap will continue to rise annually (COVID-19 2021 is the lone exception), anything pushed to a future period signifies a lower and lower percentage of the total cap the further out it is pushed. It is perfectly sound cost accounting management. You get more bang for your buck than with same period accounting. It is the same reason why businesses borrow money for operations, as opposed to using cash on hand, in a revenue growth environment where the revenue grows at a faster pace than the interest on the borrowed funds.
	“The pessimist sees difficulty in every opportunity. The optimist sees the opportunity in every difficulty.” — Winston Churchill

03-15-2021, 02:58 PM	#18
gosaints1 500th Post Join Date: Mar 2012 Posts: 576	Re: Taysom Hill creates $7.75 million in cap space with special accounting restructuring Originally Posted by AsylumGuido You can look at it as "dead weight", if you wish, but it is definitely accounting for services already rendered in the form of signing bonuses and converted roster bonuses. These bonuses are not pay to play. They are pay to be on the roster at the time of payment. Pay to play is salary and salary is not "dead weight/dead money" because it not guaranteed. Dead money is simply cap used in a prior period. It is not wasted cap. And given the fact that the cap will continue to rise annually (COVID-19 2021 is the lone exception), anything pushed to a future period signifies a lower and lower percentage of the total cap the further out it is pushed. It is perfectly sound cost accounting management. You get more bang for your buck than with same period accounting. It is the same reason why businesses borrow money for operations, as opposed to using cash on hand, in a revenue growth environment where the revenue grows at a faster pace than the interest on the borrowed funds. ”...salary is not "dead weight/dead money" because it not guaranteed” Incorrect, salaries can be anything all the way up to “fully guaranteed”. - From the NFL’s web page defining “Dead Money”: Dead money: Refers to salary a team has already paid or has committed to paying (i.e., a signing bonus, fully guaranteed base salaries, earned bonuses, etc.) but has not been charged against the salary cap. https://www.nfl.com/news/2020-nfl-fr...p3000001106817 Andrew Brandt was the Packer’s Vice President of Finance, he was a key member in managing a cap for over a decade. Actually, he managed the transfer of contracts from Brett Favre to Aaron Rodgers. I trust him when he says the following: “Dead money is cap accounting for players no longer on a team’s roster, “dead weight” that hamstrings teams from signing “live” players.” & Cap gurus magically create cap room by moving it into future years. “No. You could do that and, sorry, no, you wouldn’t be a cap guru. You could take a big salary or a big bonus (not currently prorated), turn it into signing bonus (prorated) and, in the stroke of the player’s pen, cap room would magically appear and the problem would be deferred, although not solved.” And I trust the NFL’s def’n of “dead money” above. We can debate the philosophical differences in managing an NFL team’s cap, but the def’n of dead money is defined, unambiguously, by the NFL. Seriously..., do you just wake up in the morning and decide to make crap up?
gosaints1 500th Post Join Date: Mar 2012 Posts: 576

03-15-2021, 05:05 PM	#19
AsylumGuido 10000 POST CLUB Join Date: Sep 2007 Location: Bossier City, LA Posts: 26,173	Re: Taysom Hill creates $7.75 million in cap space with special accounting restructuring Originally Posted by gosaints1 ”...salary is not "dead weight/dead money" because it not guaranteed” Incorrect, salaries can be anything all the way up to “fully guaranteed”. - From the NFL’s web page defining “Dead Money”: Dead money: Refers to salary a team has already paid or has committed to paying (i.e., a signing bonus, fully guaranteed base salaries, earned bonuses, etc.) but has not been charged against the salary cap. https://www.nfl.com/news/2020-nfl-fr...p3000001106817 Andrew Brandt was the Packer’s Vice President of Finance, he was a key member in managing a cap for over a decade. Actually, he managed the transfer of contracts from Brett Favre to Aaron Rodgers. I trust him when he says the following: “Dead money is cap accounting for players no longer on a team’s roster, “dead weight” that hamstrings teams from signing “live” players.” & Cap gurus magically create cap room by moving it into future years. “No. You could do that and, sorry, no, you wouldn’t be a cap guru. You could take a big salary or a big bonus (not currently prorated), turn it into signing bonus (prorated) and, in the stroke of the player’s pen, cap room would magically appear and the problem would be deferred, although not solved.” And I trust the NFL’s def’n of “dead money” above. We can debate the philosophical differences in managing an NFL team’s cap, but the def’n of dead money is defined, unambiguously, by the NFL. Seriously..., do you just wake up in the morning and decide to make crap up? If you read back earlier you will see that I said that on rare occasions salaries can be guaranteed and in those cases can be part of dead money. What I have stated is perfectly in line with the definition that you posted for "dead money". Note that my references to salary is the same as base salary (as opposed to bonuses). Except for the caveat of guaranteed future base salary (as I myself stressed earlier) all amounts making up "dead money" are for services already rendered. That includes the service of signing the original contract and the service of being on the roster as of a certain date in the case of that roster bonus being converted to a signing bonus for proration purposes. I know exactly what I am talking about and I don't make crap up. I understand the displeasure associated with accounting for those expenditures later, but it is the same as the case with your contractor. You wish you didn't have to make those payments in years two through five, but the work was done. The only legitimate gripe you can have in the case of dead money is indeed unearned future guaranteed salary. One more point is that not all guaranteed salaries are included in dead money. One common use of salary guarantees is date driven. Instead of game day distribution the contract can guarantee each year's salary for the entire season on say the second day of the league year. In that case that one year of the base salary could be part of the accounted for dead money if the player was released/traded/retired/died after that date. One could argue, however, that it was contractually "earned" by being on the roster at that date, much like the roster bonus. But, as I stated the vast majority of all dead money HAS been earned already. While some people thrill in the draft I have been a fan of the cap and contract side for years. My degree is in Accounting and my most favorite field of accounting has always been cost accounting. That is the basis for cap management. I take it as a personal insult being accused of waking up in the morning and deciding to make crap up. I understand that some of these concepts are difficult for some to comprehend. That's why people like Andrew Brandt choose to give as simplistic an explanation as possible for the term "dead money" when asked "why are we paying someone who isn't on the team anymore?" I totally respect Brandt. He's one of my favorite experts on the business side of the NFL. I've learned quite a bit from him on the subject. He's on NFL Radio multiple times a week especially this time of the year.
	“The pessimist sees difficulty in every opportunity. The optimist sees the opportunity in every difficulty.” — Winston Churchill

03-15-2021, 06:32 PM	#20
gosaints1 500th Post Join Date: Mar 2012 Posts: 576	Re: Taysom Hill creates $7.75 million in cap space with special accounting restructuring [QUOTE=AsylumGuido;916219]... 1) Neither our education level nor our career field is important to the discussion. Neither can be verified here, and frankly I doubt you would be authentic regardless. 2) Anyone with an ethnic slur as their forum tag shouldn’t have such thin skin, or whine when someone “offends” them. You’ve attacked others so often here that many have completely blocked you. Attacking others is what you do. “One of the things I am most proud of from my time in Green Bay is resisting temptation to play the “prorate/push out” cap game with Brett Favre. I learned from what I had seen at that time around the league, noting huge dead-money charges when franchise quarterbacks separated, including John Elway, Troy Aikman, Steve Young, Dan Marino, Steve McNair and more. I knew at some point we would not have Brett; I did not want to burden the future front office and the future quarterback (who turned out to be Aaron Rodgers) with a $20-plus million cap charge for someone not there. Brett was ultimately traded with a final dead-money charge to the team of $600,000. Sorry for the not-at-all-humble brag, but you get my point.” Apparently you haven’t learned enough from Mr. Brandt.
gosaints1 500th Post Join Date: Mar 2012 Posts: 576