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this is a discussion within the Saints Community Forum; Originally Posted by ScottF I agree' I think the arbitration is just a stunt by the PA, and that JG gets $10 mill and we move forward. The problem now is that we are only 1.5 mill under the cap. ...
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The Professor
Join Date: Oct 2003
Location: Lithonia, GA
Posts: 2,786
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Re: Saints' Jimmy Graham a franchise tight end, clearly not a wide receiver
Originally Posted by ScottF
A short Caponomics lesson:![]()
1. The $7 million franchise tag value is currently a part of the cap. Once the long term deal is signed, that money is released. 2. Long term deals are structured with the signing bonus spread over the life of the contract. So a $15 million signing bonus over 6 years for example would count $2.5 million against the cap each year. 3. The $10 million is the average salary over the life of the contract. Typically because of the signing bonus, the salaries for the first year or two are low. So a $1.5 million salary and a $3 million salary in 2014 and 2015 respectively would not be unreasonable. With the signing bonus that would be a shade less than $20 million in the first 2 years, matching the average. Couple it all together and JG may count less than $5 million against the cap for 2014. So in fact signing a long term deal will likely open up some cap space. Edit: I missed the "high back end" when I first read it. My apologies. My lesson just explains what a "high back end" means. All non guaranteed (or more precisely "not likely to be earned") dollars in a contract is monopoly money. The breakpoint is almost always when the first option bonus comes up and/or when the salary jumps. Usually this is close to mid contract. All salary after that is the "high back end". SFIAH |
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