Redskins: New Contract breakdowns/cap info

[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.

[That Guy]

i still haven't seen any mention except for arch on deferred bonuses.

I think the bears offered 8mill up front, and even though the contract was less money, i assume dan would beat the SB anyways.

[Pocono]

CC...Campbell doesn't qualify for the vet subsidy because he has a multi-year contract. Also I believe they don't have 5 option bonuses but one option bonus in 07 that triggers the final year of the contract and is prorated over the next 5 years. I don't know what kinds of options 5 option bonuses would trigger.

BTW...Future guaranteed money must be placed in escrow when a contract is signed to discourage teams from guaranteeing future salary. As for cash over cap because the Skins have about 15M in dead money and perhaps 30M in prorations for players still on the roster that reflect money paid in previous years Snyder would have to write over 48M of signing bonuses to go over the limit of cap+2%. That would only be the case this year if future guaranteed money is charged when it's placed in escrow instead of when it's actually paid to the player.

[JoeRedskin]

Originally Posted by Pocono

CC...Campbell doesn't qualify for the vet subsidy because he has a multi-year contract. Also I believe they don't have 5 option bonuses but one option bonus in 07 that triggers the final year of the contract and is prorated over the next 5 years. I don't know what kinds of options 5 option bonuses would trigger.

BTW...Future guaranteed money must be placed in escrow when a contract is signed to discourage teams from guaranteeing future salary. As for cash over cap because the Skins have about 15M in dead money and perhaps 30M in prorations for players still on the roster that reflect money paid in previous years Snyder would have to write over 48M of signing bonuses to go over the limit of cap+2%. That would only be the case this year if future guaranteed money is charged when it's placed in escrow instead of when it's actually paid to the player.

You're saying some things that are new to me. Can you please give me the links?

1. 15 Million in dead money?? Where'd you get that number? Last I saw it was closer to 3M.

2. Never seen anything about requiring an escrow for future guaranteed money. Also, even if such an escrow exists, it probably only applies to certain bonuses. In Arch's case, I think he only gets the bonus if he is actually on the team. If he is cut, he doesn't get the bonus.

[That Guy]

Originally Posted by Pocono

CC...Campbell doesn't qualify for the vet subsidy because he has a multi-year contract. Also I believe they don't have 5 option bonuses but one option bonus in 07 that triggers the final year of the contract and is prorated over the next 5 years. I don't know what kinds of options 5 option bonuses would trigger.

BTW...Future guaranteed money must be placed in escrow when a contract is signed to discourage teams from guaranteeing future salary. As for cash over cap because the Skins have about 15M in dead money and perhaps 30M in prorations for players still on the roster that reflect money paid in previous years Snyder would have to write over 48M of signing bonuses to go over the limit of cap+2%. That would only be the case this year if future guaranteed money is charged when it's placed in escrow instead of when it's actually paid to the player.

dead money is generally bonus money that's actually been paid in previous years, but is only hitting the cap this year, so it probably wouldn't be part of this year's total (real money) payroll.

[Pocono]

Originally Posted by That Guy

dead money is generally bonus money that's actually been paid in previous years, but is only hitting the cap this year, so it probably wouldn't be part of this year's total (real money) payroll.

That's what I'm saying. The dead money and prorations from previous signing bonuses are charged against the cap this year but were paid in the past so they aren't part of total payroll. So of the 102M cap amount 45M was paid in the past and accounted for now so to exceed 102M+ 2% the Skins would have to pay at least 45M+ 2% in bonuses.

As for the dead money it was 3.6M but you have to add Arrington's dead money and the dead money from the 5 other players they released to get under the cap.

[That Guy]

Originally Posted by Pocono

That's what I'm saying. The dead money and prorations from previous signing bonuses are charged against the cap this year but were paid in the past so they aren't part of total payroll. So of the 102M cap amount 45M was paid in the past and accounted for now so to exceed 102M+ 2% the Skins would have to pay at least 45M+ 2% in bonuses.

As for the dead money it was 3.6M but you have to add Arrington's dead money and the dead money from the 5 other players they released to get under the cap.

only arrington's 8+mill is significant. everyone else is probably close to 3mill.

but we have about 42mill in singing bonuses for new players already, and all those bonuses and restructures done this year count above and beyond that (as well as the new base salaries for new players). with the dead money and the extra players beyond those counting towards the cap (4-6mill). plus signings yet to be made andd rookies. last i looked we were headed towards a 120-125mill actual payroll.

[Schneed10]

Originally Posted by Pocono

BTW...Future guaranteed money must be placed in escrow when a contract is signed to discourage teams from guaranteeing future salary.

I didn't know that. I guess that means you have to tie up the cash in said escrow account, preventing you from using it in the meantime? Who gets the interest on said escrow account, the player or Snyder? I'd think it would be Snyder.