papz

The New Orleans Saints are restructuring quarterback Derek Carr's contract in a move that is expected to give the team around $23 million in salary cap relief, sources told ESPN's Jeremy Fowler on Friday.

Carr was due $30 million in base salary for the 2024 season, so converting a large portion of that into a signing bonus can help the Saints, who likely need to free up roughly $80 million via restructures.

https://www.espn.com/nfl/story/_/id/...ap-sources-say

AsylumGuido

Only $51.7 million left to go. We still have almost $38 million in roster bonuses that can easily be converted to clear up another $30 million or more.

AsylumGuido

Figured Ruiz would be up soon with his $8 million roster bonus. Probably Granderson soon after this with his $9 million. Then Cam Jordan with his $13 million in salary and roster bonus.

AsylumGuido

This is the key that some people just do not understand. For any accounting methodology to be successful it has to be used consistently. Changing things in midstream negates the positive affects. You cannot flop back and forth between FIFO and LIFO and hope to keep afloat.

Danno

Every year same concerns,
Every year restructures get us under the cap.
Rinse-repeat

Sinner

“Winning a championship is not the ultimate goal.”

~ Quido

AsylumGuido

Yup. And in the world of an ever-expanding cap this methodology maximizes the value by accounting for current period cash paid in later periods where it makes up a smaller percentage of the total cap than in the period in which it actually occurred. However, it can only work to its greatest advantage if it is used consistently.

BakoSaint

What do you mean by 'consistently' and why can it only work if used 'consistently'? Its essentially debt guaranteed against an asset (the player) that can be financed interest free but triggers a balloon payment if the asset (player) is disposed of (cut or trade). So its a lot like mortgages on real estate. Could mortgages for a real estate holding company only work to their greatest advantage if they are used consistently? Or could that real estate company weather downturns and rid itself of liabilities faster if it held some assets without mortgages or didn't mortgage every asset to the maximum extent?

Likewise, might it not be to the Saints advantage if given the uncertainty around Ryan Ramczyk's future, his contract was left as-is to provide flexibility should he suddenly be forced into retirement or be unable to perform? And likewise, might it not be to the Saints greatest advantage if they had the financial flexibility to exit Derek Carr's contract in the 2025 offseason, just like it was to the advantage of recent Super Bowl teams to be able to exit the contracts of Alex Smith, Jimmy Garappalo, Caron Wentz, Jared Goff, Andy Dalton, and Jameis Winston when needed?

AsylumGuido

AsylumGuido

The 2024 salary cap final number comes in at $13 million more than the projected number of $242.5 million! This immediately reduces the Saints' cap deficit by that same $13 million!