2024 Saints Salary Cap Watch

BakoSaint · 02-23-2024, 08:10 PM

Originally Posted by 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.

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?

02-23-2024, 08:10 PM	#11
BakoSaint 1000 Posts + Join Date: Dec 2018 Posts: 2,400	Re: 2024 Saints Salary Cap Watch Originally Posted by 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. 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?
BakoSaint 1000 Posts + Join Date: Dec 2018 Posts: 2,400