Redskins: New Contract breakdowns/cap info

[CrazyCanuck]

Originally Posted by That Guy

canuck, only arch has 5 $1mill bonuses.

carter and El's are all up front money. arch is just an injury risk.

also, the bonuses only prorate 5 years. thats 2.2per for El and 2per for carter (6 year, 2-3 at min most likely).

Are you sure about Carter and El's upfront money? Just because the money is announced as "guaranteed" doesn't mean it's all up front. It's unlikely they would get everything up front with no additional bonuses later in the contract.

I find that Snyder has really moved away from big roster bonuses and is using more and more option bonuses. Option bonuses get prorated, roster bonuses do not. One reason might be that he's sick of restructuring 10 contracts every offseason.

2006 bonuses prorate over 5 years. In 2007 (and for a few years after) they prorate over 6 years (if the contract runs that long).

[That Guy]

Originally Posted by CrazyCanuck

Are you sure about Carter and El's upfront money? Just because the money is announced as "guaranteed" doesn't mean it's all up front. It's unlikely they would get everything up front with no additional bonuses later in the contract.

I find that Snyder has really moved away from big roster bonuses and is using more and more option bonuses. Option bonuses get prorated, roster bonuses do not. One reason might be that he's sick of restructuring 10 contracts every offseason.

2006 bonuses prorate over 5 years. In 2007 (and for a few years after) they prorate over 6 years (if the contract runs that long).

In 2007 they prorate 6 years, in 2008 and beyond, it goes back to 5. They made a very special point about archuleta's bonuses, and said absolutely nothing of the sort about any of the others. I think arch's are roster bonuses cause of his back problems, but maybe they're option bonuses...

[CrazyCanuck]

Originally Posted by That Guy

In 2007 they prorate 6 years, in 2008 and beyond, it goes back to 5.

As per the cba, the new proration limits are as follows:

2006 5 yrs
2007 6 yrs
2008 6 yrs
2009 6 yrs
2010 6 yrs
2011 5 yrs

[That Guy]

Originally Posted by CrazyCanuck

As per the cba, the new proration limits are as follows:

2006 5 yrs
2007 6 yrs
2008 6 yrs
2009 6 yrs
2010 6 yrs
2011 5 yrs

weird i read an article (gil brandt?) that said is was only 6 years in 2007 and 5 in 2008... it was also the article that listed new vet min numbers and yearly increases in vet min salaries.

[Schneed10]

Originally Posted by CrazyCanuck

I find that Snyder has really moved away from big roster bonuses and is using more and more option bonuses. Option bonuses get prorated, roster bonuses do not. One reason might be that he's sick of restructuring 10 contracts every offseason.

I think you're probably right about the shift towards using option bonuses. Thinking about it from a team salary cap perspective, an option bonus still allows the Redskins to prorate the payment over 5 years of the contract, just like an up-front signing bonus would. And then from a business perspective, using the option bonus helps Snyder's cash flow as he's not forced to pay out the entire signing bonus in lump sum. He can pay some of it up front in lump sum, but put off the remaining payment until later. This allows him to keep some extra cash on hand, which he can plow back into the business to earn a return on new capital investments, or just sock that cash into investment accounts that earn interest. Then when the option bonus comes due, he can pay it up at that point, and be better off financially than he would have been if he paid the entire bonus up front in a lump-sum.

Smart business man, that Dan Snyder.