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Graham designated TE by arbitrator

this is a discussion within the Saints Community Forum; Originally Posted by B_Dub_Saint That was great. You should do my taxes bro. I might be a rich man Im still puzzled how the cap really works and the loop holes to get through them. I posted a detailed example ...

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Old 07-03-2014, 09:56 AM   #10
The Professor
 
Join Date: Oct 2003
Location: Lithonia, GA
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Re: Graham designated TE by arbitrator

Originally Posted by B_Dub_Saint View Post
That was great. You should do my taxes bro. I might be a rich man

Im still puzzled how the cap really works and the loop holes to get through them.
I posted a detailed example of a potential JG contract about 3 weeks ago. You can read it here:

http://blackandgold.com/saints/66411...tml#post597157

The cap really isn't that difficult to understand. Bonuses are divided evenly over the life of the contract. Salary is paid yearly. The cap number is the sum of the bonus part and the salary part. Bonus is guaranteed. Salary is not. The remaining bonus becomes "immediately" due if the player is cut.

So to Guido's example. A $24 million signing bonus over 6 years counts $4 million a year against the cap. With a $24 million check in hand, JG would be happy to take a $1 million salary for the first year. So the cap number is $1+$4 million = $5 million. But JG gets a $24 million check when he signs.

Now the cap number the last 3 years of the contract may be $12/$15/$18 million/year because the salary increases to $8/$11/$14 million/year by the end. But then you can renegotiate, cut another bonus check, and spread out the cap number by extending the contract. Or if the player isn't productive simply cut them and eat the remaining bonus money which at that point is a lot less than the cap number with the inflated salary.

Trust me that both sides are motivated to get a long term deal done by next week. JG wants his big contract and big bonus check now, while the Saints want the cap relief of the long term contract.

That's the reason that it'll get done.

SFIAH
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