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Can Somebody Explain How A Nfl Contract Works With The Guaranteed Money And Signing/roster Bonus's?


THE ICEMAN
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Like lets say we sign Mario Williams to a 7 year deal worth around 100 million dollars with 50 million guaranteed.

But lets say we give him a signing bouns of 30 million to and his first year cap his is only like 5 million doesn't the signing bonus not count aginst the cap?

And the point I'm getting to is lets say a team with no cap space this year but an owner with more money than he knows what to do with like the Cowboys for example who don't have much cap space this year but next year they do and going forward (don't know just using them for example) couldn't they just giving Mario Williams a huge signing bouns like something crazy like upwards of 40 million then as they years go on have the huge salary.

And thats why if the cap works that way Aurthur Blank may have to really open up his pockets to get Mario Williams.

Hopefully one of you'all can shed some light on how an NFL contract works with the cap space and the bonus's and guaranteed money because this could hurt or help us.

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If there was a 30 million contract, the team has the option of counting it all the first year or spreading it evenly among the 7 years. You can structure contracts so the cap hit is really small the first year, but it comes back to haunt you in the later years.

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If there was a 30 million contract, the team has the option of counting it all the first year or spreading it evenly among the 7 years. You can structure contracts so the cap hit is really small the first year, but it comes back to haunt you in the later years.

yea but couldn't you just cut the player lets going into his 4th contract year to save 10 million aginst the cap or what ever the base salary would be or like Matt Ryan you could always restructure the contract and take that year and turn it in to a bonus like Andrea Johnson just did and if the cap works this way.

I think it's really a crap shoot who will get Mario Williams and more about which teams are willing to give him maybe 100 million dollar deal with a huge signing bonus

Just take Julieus Pepers for example the bears have already restructured his deal twice to help them with the cap and I belive he only been there 3 seasons.

Hopefully Mario Williams views ATL as a top notch franchise or Aurthur Blanks just is willing to out bid who ever steps in his way

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The player gets the signing bonus when he signs the contract. So lets say the player gets a 20 mil signing bonus, he gets $20 mil day one. But that $20 mil is spread out over the life of the contract for cap purposes even though the player already has the $$. But, if you cut or trade that player at any point, whatever amount of the signing bonus that hasn't already hit the cap, hits the cap for that year. There are ways of spreading it out w/ the June 1st cuts and such, but that's the basics.

Roster bonuses are not guarunteed $$. A roster bonus simply says, if you're still on the roster on this date, you'll get a bonus of X. I'm not sure exactly how they hit the cap.

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yea but couldn't you just cut the player lets going into his 4th contract year to save 10 million aginst the cap or what ever the base salary would be or like Matt Ryan you could always restructure the contract and take that year and turn it in to a bonus like Andrea Johnson just did and if the cap works this way.

Ok, that's a great question. If you had a person signed to a contrract with a 30 million dollar signing bonus prorated over 7 years and he had a 4th year salary of 10 million, here is what it would look like.

Salary: 10 mil

Prorated Bonus: 4.29 Mil

Total cap charge 14.29 Mil

Now, if you cut the same guy before June 1st, then you would still have the bonus count against the cap.........plus the remaining three years of prorated bonus. At 4.285719 mil per year, the total charge would be: 17.14286 million.

In this scenario, the team would actually lose about 2.9 million in cap room.

Now, if the team cut the player after June 1st, it would save the team 5.71 in caps space in the current season, but in the following season that team is going to have a 12.875 million dollar cap hit for a player no longer on the team.

Turning salary into bonus can help in the short term, but it makes the players way more expensive against the cap in the future.

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