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Re: Colston restructures his contract

Quote:

Originally Posted by westbankdaze (Post 483010)

Thanks but I'm even more confused. So he does make less money this year but he is promised more the next - as long as he doesn't get hurt? I don't see why if I was a player I would want to restructure. I thought it was all about getting paid now before the possibility of injury?

The guaranteed money he gets right away. Think of it as a salary advance. He gets more money now, but the team can spread the cap hit out.

In the example I showed, he already got a 10 million dollar check for signing the contract.

He now gets another 6.4 million dollar check without playing a down.

Its the same total amount, he just gets more of it right away.

Quote:

Originally Posted by westbankdaze (Post 483010)

The simplest way I could put it is.
The player reduces his yearly salary for a large chunk upfront,the team is allowed to spread the cost off that chunk over the players contract.

So you agree say a $100ml 5 year contract and get 40ml as a signing bonus.Your salary is no longer $100ml over 5 years but 60ml as you have allready been paid the rest.

Its a way off spreading the cost over a longer period of time.Players would rather have the money now than run the risk of getting cut at a later date and not getting as much.

Re: Colston restructures his contract

Quote:

Originally Posted by Danno (Post 483024)

And therefore because he gets more of it right away, that 6.4 mil we have just handed him gets subtracted from the salary cap figure, is that correct?
So colston has saved us 6.4 mil on the cap by restructuring and taking it now?

Re: Colston restructures his contract

Quote:

Originally Posted by dizzle88 (Post 483047)

...So colston has saved us 6.4 mil on the cap by restructuring and taking it now?

This year

Re: Colston restructures his contract

Quote:

Originally Posted by dizzle88 (Post 483047)

My example wasn't Colstons numbers, just an example of how it works.

Its simply converting yearly salary (which he only gets if he makes the team) to Bonus money, which he gets regardless of whether he makes the team or not. And he gets it right now.

The team can now take the bonus portion and spread it out evenly over the life of the contract.

We're lowering the cap hit now by raising it later. A lot can happen later, like big salaries coming off the books, expensive players being replaced by cheaper ones, or the yearly cap going up.

Thats why I feel we need to start drafting better. Draft picks are cheap.

We also need to keep signing mid-tier free-agents. They won't break the bank and sometimes they work out very well (Goodwin, DLP, Greer, D. Thomas, Hargrove, Sharper etc...)

What will kill us are high-priced free-agents that don't pan out. The Drew Brees signings are definitely the exception, not the rule.

Re: Colston restructures his contract

Quote:

Originally Posted by Danno (Post 483091)

We're lowering the cap hit now by raising it later. A lot can happen later, like big salaries coming off the books, expensive players being replaced by cheaper ones, or the yearly cap going up.

Thats why I feel we need to start drafting better. Draft picks are cheap.

We also need to keep signing mid-tier free-agents. They won't break the bank and sometimes they work out very well (Goodwin, DLP, Greer, D. Thomas, Hargrove, Sharper etc...)

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