Cooley Restructures

[Longtimefan]

Schneed...Tell us about how Sean Taylor's cap numbers affect the total.

[Schneed10]

Originally Posted by Longtimefan

Schneed...Tell us about how Sean Taylor's cap numbers affect the total.

His signing bonus accelerates and hits us in 2008. We take a cap hit because of it and carry him as dead money in 2008 (brings an all-too-real meaning to that term, doesn't it). It's nothing major, just a million or two.

[SkinsFanSince91]

Originally Posted by SmootSmack

FOX Sports on MSN - NFL - 'Skins rework Cooley deal to save cap space

FOXSports.com has learned Washington converted an $11 million roster bonus Cooley was scheduled to receive into guaranteed money. The move is believed to have lowered Cooley's 2008 cap number from a team-high $12.2 million to $4.4 million.

We have to have the best cap people in the NFL. I swear every offseason we are egregiously over the cap, and somehow we get enough for free agents and draft picks.

If the cap was anything like the US national deficit, Snyder's people would be heroes (at least on a national scale, we still look to save us from the wake of a DS spending spree..haha).

[Schneed10]

Originally Posted by SkinsFanSince91

We have to have the best cap people in the NFL. I swear every offseason we are egregiously over the cap, and somehow we get enough for free agents and draft picks.

If the cap was anything like the US national deficit, Snyder's people would be heroes (at least on a national scale, we still look to save us from the wake of a DS spending spree..haha).

It's really not rocket science. Hell, I've had the plan mapped out on here for weeks.

As for the debate over whether a player should be applauded for a restructure, I know I sound like a broken record but it needs to be said again. In a simple restructure, the player still gets the same amount of money his contract says he will, he just gets it all up front instead of spread over the course of the season. The player has no incentive to turn this down, and all the incentive in the world to accept it. Players don't do it out of the goodness of their heart. They do it because it's the same money up front.

Now if you see a player agree to a pay cut, then you should applaud them.

[skinsguy]

Originally Posted by Schneed10

It's really not rocket science. Hell, I've had the plan mapped out on here for weeks.

As for the debate over whether a player should be applauded for a restructure, I know I sound like a broken record but it needs to be said again. In a simple restructure, the player still gets the same amount of money his contract says he will, he just gets it all up front instead of spread over the course of the season. The player has no incentive to turn this down, and all the incentive in the world to accept it. Players don't do it out of the goodness of their heart. They do it because it's the same money up front.

Now if you see a player agree to a pay cut, then you should applaud them.

This sounds pretty rock solid. I wouldn't see any player refusing to restructure if a big chunk of change is converted to guaranteed money. Heck, it's like my company giving me my year's salary up front (of course not nearly as impressive as several million dollars!) This also appears to be an incentive in itself. What better way to keep your players than to say, "tell ya what, you're such a valuable player to us that we're just going to go ahead and give you a chunk of your contract now. I'm sure you'll earn it during the season!"

I don't ever see the Redskins getting into cap trouble as long as Danny has deep pockets. My question is, what would happen if this "share the wealth" program between owners in the league goes sour, and we have an uncapped year? I've heard we'd have to dump players left and right, but I guess I just don't understand the whole process.

[MPNRedskins]

That's awesome Cooley restructured his deal. Thanks Chris. Hopefully, the management won't let you down and get some quality players.

[FRPLG]

Originally Posted by SkinsFanSince91

We have to have the best cap people in the NFL. I swear every offseason we are egregiously over the cap, and somehow we get enough for free agents and draft picks.

If the cap was anything like the US national deficit, Snyder's people would be heroes (at least on a national scale, we still look to save us from the wake of a DS spending spree..haha).

As Schneed said it is not that they are all that great although I do think they do a good job. There are basically two ways to handle the cap.

Straight forward
Cash over cap

Straight forward is as it seems. Not a ton of things like roster bonuses but they do have gradually escalating salaries. Put a good signing bonus on and you have players from the Eagles for example.

Cash over cap means you pay a somewhat smaller signing bonus but have two or three roster bonuses down the line and pretty low salaries to start with pretty high salaries in the end.

Example:

straight forward:
5 year deal
sb of 5 mil
salaries
500k 1mil 1mil 1.5mil 1.5mil = 5.5mil

cap numbers
1.5mil 2mil 2mil 2.5mil 2.5mil = 10.5mil

cash over cap:
5 year deal
sb of 3mil
salaries
500k 500k 500k 1mil 3mil = 5.5mil
rb
yr2-1mil yr3-1mil = 2mil

cap numbers
1.1mil 2.1mil 2.1mil 1.6mil 3.6mil = 10.5mil

so the cap numbers are slightly different but overall the salaries are the same and guaranteed money is the same.

then what happens in cash over cap is the roster bonuses get converted to signing bonuses which allows them to prorate so the cap numbers change to.
1.1mil 1.350mil 1.683mil 2.183mil 4.183mil

so most of the money gets pushed forward. as the expensive years come up salaries are turned into bonuses and get prorated also and restuctures change some other stuff but in the end the only actual expensive year for a guy is his last. if you keep your expensive guys per year to just a couple it is very manageable in the end. Some would say you have more flexibility with the cash over cap method if you execute it well. It kills you thiugh if you have bad talent evaluation because you become more "stuck" with a guy.

[Schneed10]

I've just learned that the Randle-El restructure I listed below did indeed take place as well. The $1.2 million in savings from his accounts for all of the difference between my numbers and the ones provided by PCinOZ. Because we're tying out, it's pretty much official, we're $4.0 million over the cap.

Start: $20.4 million OVER cap

Potential Roster Cuts:
Phillip Daniels - $3.0 million saved
Mark Brunell - $3.4 million saved
Shawn Springs - $2.5 million saved
Pete Kendall - $1.8 million saved
Todd Wade - $700K saved
Total Savings for Cuts: $11.4 million

Keeping These Players, Restructuring 2008 Base Salary, Prorating over Remaining life of Contract:
Randy Thomas - $3.7 million saved - EXECUTED
Clinton Portis - $3.2 million saved
Jon Jansen - $3.2 million saved
Chris Samuels - $2.8 million saved
Cornelius Griffin - $2.6 million saved
Santana Moss - $1.9 million saved
Casey Rabach - $1.4 million saved
Total Salary Restructure Savings: $18.8 million

Keeping These Players, Restructuring 2008 Roster Bonuses, Prorating over Remaining life of Contract:
Ladell Betts - $1.7 million saved
Clinton Portis - $0.4 million saved
Chris Cooley - $9.2 million saved - EXECUTED
Andre Carter - $1.9 million saved - EXECUTED
Antwaan Randle-El - $1.2 million saved - EXECUTED
Total Bonus Restructure Savings: $14.4 million

AFTER EXECUTED TRANSACTIONS: $4.0 MILLION OVER

[Slingin Sammy 33]

Originally Posted by Schneed10

AFTER EXECUTED TRANSACTIONS: $4.0 MILLION OVER

So if we make the below moves we should be $ 14M under the cap, correct?

Start: $20.4 million OVER cap

Potential Roster Cuts:
Phillip Daniels - $3.0 million saved - keep
Mark Brunell - $3.4 million saved - CUT
Shawn Springs - $2.5 million saved - keep
Pete Kendall - $1.8 million saved - keep
Todd Wade - $700K saved - CUT
Total Savings for Cuts: $11.4 million

Keeping These Players, Restructuring 2008 Base Salary, Prorating over Remaining life of Contract:
Randy Thomas - $3.7 million saved - EXECUTED
Clinton Portis - $3.2 million saved - yes
Jon Jansen - $3.2 million saved - no
Chris Samuels - $2.8 million saved - yes
Cornelius Griffin - $2.6 million saved - yes
Santana Moss - $1.9 million saved - yes
Casey Rabach - $1.4 million save - yes
Total Salary Restructure Savings: $18.8 million

Keeping These Players, Restructuring 2008 Roster Bonuses, Prorating over Remaining life of Contract:
Ladell Betts - $1.7 million saved - yes
Clinton Portis - $0.4 million saved - yes
Chris Cooley - $9.2 million saved - EXECUTED
Andre Carter - $1.9 million saved - EXECUTED
Antwaan Randle-El - $1.2 million saved - EXECUTED
Total Bonus Restructure Savings: $14.4 million

[Schneed10]

Originally Posted by Slingin Sammy 33

So if we make the below moves we should be $ 14M under the cap, correct?

That's right, you've got the math.

[itvnetop]

Thanks 33 and Schneed... now it makes sense to me.

[CrazyCanuck]

Fantastic posts by Schneed and 33.

The Skins used another trick with the resturcutures of ARE, Thomas, and Carter - the extra year.

All 3 of them got an extra year (2013) added to their contracts. So not only did the Skins push money into the future, they extended the future.

It's unlikely that Randy Thomas will be playing here in 2013 in what would be his 14th NFL season, but by adding the extra year the Skins can push some of the new signing bonus money to 2013. This allows the $4.65M restructured amount to be divided by 6 remaining years of the contract instead of 5, which helps the cap in 2008 (though only slightly).

When Thomas likely restructures next year they can push some of that money to 2013, or even add another year and repeat the process.

[freddyg12]

Originally Posted by CrazyCanuck

Fantastic posts by Schneed and 33.

The Skins used another trick with the resturcutures of ARE, Thomas, and Carter - the extra year.

All 3 of them got an extra year (2013) added to their contracts. So not only did the Skins push money into the future, they extended the future.

It's unlikely that Randy Thomas will be playing here in 2013 in what would be his 14th NFL season, but by adding the extra year the Skins can push some of the new signing bonus money to 2013. This allows the $4.65M restructured amount to be divided by 6 remaining years of the contract instead of 5, which helps the cap in 2008 (though only slightly).

When Thomas likely restructures next year they can push some of that money to 2013, or even add another year and repeat the process.

At the end of the collective bargaining agreement, all bonuses have to be accounted for in one year, correct? That was the situation in the 06 offseason when for a period, we were in cap hell, or maybe cap purgatory better explains it.

W/the cba set to expire & no new deal in place, all of those deals come due essentially. Am I right on this generally? From what I read in 06 that's the way I understand it.

My point is simply that while there isn't a 'ceiling' for these extensions, the whole strategy is dependent upon a cba being agreed to. If the cba expires w/out a new one in place, the Skins would face cap hell for real.

[JoeRedskin]

Originally Posted by freddyg12

At the end of the collective bargaining agreement, all bonuses have to be accounted for in one year, correct? That was the situation in the 06 offseason when for a period, we were in cap hell, or maybe cap purgatory better explains it.

W/the cba set to expire & no new deal in place, all of those deals come due essentially. Am I right on this generally? From what I read in 06 that's the way I understand it.

My point is simply that while there isn't a 'ceiling' for these extensions, the whole strategy is dependent upon a cba being agreed to. If the cba expires w/out a new one in place, the Skins would face cap hell for real.

In the last CBA, there was a "nuclear option" written into the agreement - that being to accelerate the bonuses. That was done to encourage a new agreement b/c, it was assumed, no one wanted to deal those consequences. I do not know if such a clause has been written into the new agreement. If not, then when the CBA expires, the salary cap disappears. The only reason it exists is b/c the players agreed to it. Once gone, it will be hard (if not impossible) to replace b/c salaries in the short term will skyrocket.

[Schneed10]

Nice, CC. By the way, from a glance it looks like Brunell is the difference between you and PCinOZ at the moment. He has Brunell off his books, you have him on yours. If we add Brunell to his books and incorporate the Cooley restructures in his, the two of you pretty much tie out.

And yours is more correct, Brunell's not off our payroll yet (though he will be March 1). JLC should be coming to you instead of always referencing PC!