Colston restructures his contract

03-01-2013, 10:37 PM

Originally Posted by westbankdaze

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.

lee909 · 03-02-2013, 01:49 AM

Originally Posted by westbankdaze

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 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.

dizzle88 · 03-02-2013, 04:20 AM

Originally Posted by Danno

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.

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?

UK_WhoDat · 03-02-2013, 07:20 AM

Originally Posted by dizzle88

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

This year

Danno · 03-02-2013, 10:16 AM

Originally Posted by dizzle88

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?

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.

FinSaint · 03-02-2013, 05:35 PM

Originally Posted by Danno

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...)

03-01-2013, 10:37 PM	#31
Threaded by Danno Truth Addict Join Date: Dec 2003 Location: Spanish Fort, AL (via NO and B/R) Posts: 24,720 Rating: (0 votes - average) Originally Posted by westbankdaze 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.
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03-02-2013, 01:49 AM	#32
lee909 Site Donor 2015 Join Date: Mar 2012 Location: Watford England Posts: 8,803 Blog Entries: 1	Originally Posted by westbankdaze 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 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.
	"Two receivers to the left, Garcon to the right. Manning in the shotgun, puts Collie in motion. Looks in his direction...it's picked off! It's picked off! It's Tracy Porter again! He's runnin' free! He's gonna go all the way!

03-02-2013, 04:20 AM	#33
dizzle88 10000 POST CLUB Join Date: Oct 2009 Posts: 11,208	Re: Colston restructures his contract Originally Posted by Danno 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. 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?

03-02-2013, 07:20 AM	#34
UK_WhoDat 1000 Posts + Join Date: Aug 2003 Location: Wherever I lay my hat Posts: 3,947	Re: Colston restructures his contract Originally Posted by dizzle88 ...So colston has saved us 6.4 mil on the cap by restructuring and taking it now? This year

03-02-2013, 10:16 AM	#35
Danno Truth Addict Join Date: Dec 2003 Location: Spanish Fort, AL (via NO and B/R) Posts: 24,720	Re: Colston restructures his contract Originally Posted by dizzle88 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? 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.

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03-02-2013, 05:35 PM	#36
FinSaint Site Donor 2015 Join Date: Aug 2011 Location: Finland... formerly Southern Virginia Posts: 4,961	Re: Colston restructures his contract Originally Posted by Danno 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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