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

With Drew Brees finally retired, the Saints can get to work on their post-Brees quarterback plan.

Step one: Sign Taysom Hill to a new contract that isn’t really a new contract.

The carefully crafted initial tweet from Adam Schefter of ESPN says that the “[d]etails are great,” and that it’s a four-year $140 million extension. Although Schefter can perhaps find some plausible deniability in the precise meaning of “great,” it’s all fake and it’s all phony. The restructuring is a device for creating 2021 cap space, and nothing more.

The four-year extension, which pays out $35 million per year, is fully voidable. Schefter eventually mentions that, but there will be a percentage of media and fans who fail to fully understand what’s happening; based on his initial tweet, some will think the Saints are paying Hill $35 million per year when they most definitely aren’t.

Per a source with knowledge of the situation, Hill simply gets the $12.159 million he was supposed to earn this year. The addition of the four phony years, regardless of fake salaries, allows for the creation of $7.75 million in cap space.

As the source explained it when asked point blank what Hill gets, Hill gets what he was due to get in fully-guaranteed fashion. Indirectly, he gets the benefit of extra cap dollars for a team desperate both to comply with the cap and to have enough space to maneuver.

He will never get $140 million over four years under this deal. Presumably, the Saints could have picked any number they wanted. The number chosen, coupled with the carefully reckless way the numbers initially were presented, will result in some mistakenly thinking that Hill is getting paid obscenely more than he is.

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

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

So a little bit like Tom Brady's contract restructure then. Effectively a two-year deal masquerading as 4-5 year deal.

Restructures are king in today's NFL, that's for sure.

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

Actual picture of Mickey working the CAP.

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

In Loomis I Trust

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

Most of our players now and in the past should be thankful of the generosity of the New Orleans saints org. They will be getting checks in the mail way pass there time in the NFL from spread out cash like a added pension


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

Nope. That cash has already been paid to the player and is just being accounted for in later periods. Every time you see cap pushed out into future periods a check for the full amount is almost always given at the time the contract, extension, or restructure, is signed. The rare occasion it doesn't is when both sides agree to the total being paid at a later date within the first year. Extremely rare.

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

$19M+ in dead money would like to have a conversation with you. I’m just not a fan of paying ppl not to do work for me, but to each their own. >10% of our cap allocation is on players not on our roster.

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

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.

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

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.

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

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”.

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

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...

https://media.giphy.com/media/xT77XP...4fAI/giphy.gif

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

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

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

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

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.

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

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.

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

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.

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

”...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?

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

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.

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.

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

Especially small market teams that are willing to write blank checks and push the cap forward to grow(in past years). Gail Benson, much like Tom later in life doesn't mind writing checks for the team to do well.

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

[quote=gosaints1;916247]
I have have read pretty much everything Brandt has said. He knows his stuff. I am in no way defending the strategy of playing the cap out into the future. I was responding to your claim that we were paying players for not playing. In that you were wrong. We are simply suffering the effects of prorated payments spread into future periods. Yes, of course. That is the payback. Nobody is disputing that.

What I was disputing is your claiming that that cap was going towards a player not earning it. That is absolutely wrong.

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.

Where do you want to meet for me to show you documented proof? What me to post my diploma here? Any other proof I need to post here for your satisfaction? What is your problem. You constantly dog me. What is your problem?

:confused:

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.

To the best of my knowledge two individuals have blocked me. Is that many?

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

Those checks were written while Tom was alive. They are just now hitting the books.

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

[quote=AsylumGuido;916252]I have no way of factually knowing how many have blocked you..., if you say two, then two it was. It’s three now.

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

[quote=gosaints1;916256]Truth hurts, huh?

https://media0.giphy.com/media/3o7Ze...uuIg/giphy.gif

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

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

They aren’t on your roster because you removed them, that’s your problem and not theirs.

Dead money is not ‘paying people that aren’t working’, it’s deferring the recognition of their sunk cost.

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

It's hard to believe such a blatant move to subvert the cap is allowed. And on a side note, the QB position is now the most over valued position in sports.

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

Tampa Bay just did basically the same thing with Tom Brady's contract to free up over $19 million in 2021 cap. I doubt the league would have any objections to maneuvering around the dreaded "COVID Cap of 2021".

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

I never said it was a player’s problem, I’ve always said it was an organizational problem. Pretty sure the Eagles are paying Wentz $34M to play somewhere else. Our players are no different. We’ll soon, post 6/1, be above that amount wrt “dead money”.

It’s simple:

1) Dead Money Players are no longer with the organization.

2) The organization is still paying them.

Say it’s for past work, say it’s for future work, say it’s for helping little old ladies across the street, say it’s for going to church, say it’s for defending daylight savings time, say it’s for enjoying wine instead of beer..., I don’t care what each of us say it’s for, bc the dogmatic truth is:

1 & 2 above are facts, unassailable.

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

While #1 is absolutely true, #2 is absolutely false. The organization paid those players already. Not one penny is now going to them. None. The "dead money" is nothing more than accounting for the earned and previously paid expenditures from prior periods.

THAT is the unassailable fact that you seem to be unable to comprehend.

Every dollar of the Saints 2021 Dead Cap is the result of bonuses paid in prior periods.

Player	POS	Base Salary	Signing Bonus	Roster Bonus	Option Bonus	Workout	Restructure	Misc.	Dead Cap	Cap Hit	Cap %
Janoris Jenkins	CB	-	$6,000,000	$1,200,000	-	-	-	-	-	$7,200,000	3.88
Sheldon Rankins	DT	-	$4,000,000	-	-	-	-	-	-	$4,000,000	2.16
Emmanuel Sanders	WR	-	$4,000,000	-	-	-	-	-	-	$4,000,000	2.16
Jared Cook	TE	-	$2,000,000	-	-	-	-	-	-	$2,000,000	1.08
Thomas Morstead	P	-	$2,000,000	-	-	-	-	-	-	$2,000,000	1.08
Malcom Brown	DT	-	$1,500,000	-	-	-	-	-	-	$1,500,000	0.81
Nick Easton	G	-	$1,000,000	-	-	-	-	-	-	$1,000,000	0.54
Josh Hill	TE	-	$750,000	-	-	-	-	-	-	$750,000	0.40
Saquan Hampton	S	-	$97,604	-	-	-	-	-	-	$97,604	0.05
Tommy Stevens	TE	-	$60,447	-	-	-	-	-	-	$60,447	0.03
Will Clapp	C	-	$18,285	-	-	-	-	-	-	$18,285	0.01
Joe Bachie	LB	-	$10,000	-	-	-	-	-	-	$10,000	0.01
Jordan Steckler	G	-	$10,000	-	-	-	-	-	-	$10,000	0.01
Calvin Throckmorton	T	-	$8,334	-	-	-	-	-	-	$8,334	0.00
Juwan Johnson	WR	-	$6,667	-	-	-	-	-	-	$6,667	0.00
Tony Jones	RB	-	$6,667	-	-	-	-	-	-	$6,667	0.00
Keith Washington	CB	-	$6,667	-	-	-	-	-	-	$6,667	0.00
Tino Ellis	CB	-	$5,000	-	-	-	-	-	-	$5,000	0.00
Darrin Paulo	T	-	$3,334	-	-	-	-	-	-	$3,334	0.00
Chase Hansen	LB	-	$1,668	-	-	-	-	-	-	$1,668	0.00
Gus Cumberlander	DE	-	$1,000	-	-	-	-	-	-	$1,000	0.00
Dead Money:		-	$21,485,673	$1,200,000	-	-	-	-	-	$22,685,673	12.23

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

Every franchise in the NFL has dead cap in 2021. The league average is $10,773,063. Those numbers will grow by 4:00 PM Wednesday. It is simply part of the game.

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

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

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

Ahhh beautiful when you say “it’s simple”, use the word “facts” then get it wrong thanks for the millennial trifecta.

#2 is wrong, I explained why it is wrong but instead of trying to understand prorated recognition you double down on wrong... have it your way.

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

Saying “efficiency of dead cap” to me is like saying a brand of cigarettes is healthier than others, there is no positive on dead cap and it’s an inefficiency of cap space. I’d phrase it as a direct calculation, dead cap/total available cap is inefficiency of cap space.

100% efficiency of cap space is no dead money
$10M dead cap on $100M cap is 10% inefficiency.

Dead cap is a problem for Loomis with the league because it hinders talent acquisition and contract negotiation. Dead cap is a problem for Loomis with Gayle Benson because it’s sunk cost/burnt capital which should be a matrix in his contract.

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

Taysom is not the future QB. However, he's the best at what he does and add undeniable value to the entire team.