Sun Tzu 7

Grady Cap Hits Per Spotrac

32 posts in this topic

https://www.spotrac.com/nfl/atlanta-falcons/grady-jarrett-16863/

Red = cap hit.  Black = dead cap for cutting him

YEAR   AGE BASE SALARY SIGNING OPTION CAP HIT DEAD CAP YEARLY CASH  
2019 Contract details by year 26       $11,750,000 $38,000,000    
2020 Contract details by year 27       $15,750,000 $26,250,000    
2021 Contract details by year 28       $18,750,000 $10,500,000    

POTENTIAL OUT: 2022, 3 YR, $51,500,000; $5,250,000 DEAD CAP

2022 Contract details by year 29       $21,750,000 $5,250,000  

 

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What was very smart was to front load the deal...it only creates an additional $3.5M this year, but who cares.  Team is set...$3.5M allows for veteran addition flexibility like a Bruce Irvin if such an opportunity presents itself.

By front loading, the salary’s in Years 2-4 aren’t so onerous.

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Just now, TheDirtyWordII said:

What was very smart was to front load the deal...it only creates an additional $3.5M this year, but who cares.  Team is set...$3.5M allows for veteran addition flexibility like a Bruce Irvin if such an opportunity presents itself.

By front loading, the salary’s in Years 2-4 aren’t so onerous.

Year 4 is going to have the non-guaranteed money so it's always going to be ugly. The goal is to cut or re-sign him before then.

But yeah... I don't like how they structured because it's going to be a pain year 3 as Debo's and Neal's cap hits could also be huge... also got to make a decision about McKinnley and the edge rushers.

Maybe Julio is retired by then....

Tim Mazetti likes this

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25 minutes ago, Osiruz said:

Frees up a little over 3 mil in cap space.

But I was told we have 23 mill in cap lol

Osiruz likes this

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2 minutes ago, GeorgiaBoyz said:

When one says the same thing as the other .. in the south . One says “jinx owe me a soda.” We both said the same thing in this thread within a min . Lol .

lol good point

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16 hours ago, FalconsIn2020 said:

Looks like a 3 year deal to me

TD always structures it this way and looks to extend or cut one year before deal is up. 

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17 hours ago, GeorgiaBoyz said:

When one says the same thing as the other .. in the south . One says “jinx owe me a soda.” We both said the same thing in this thread within a min . Lol .

Always heard it as “Pinch Poke you owe me a Coke!”

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18 hours ago, Sun Tzu 7 said:

https://www.spotrac.com/nfl/atlanta-falcons/grady-jarrett-16863/

Red = cap hit.  Black = dead cap for cutting him

YEAR   AGE BASE SALARY SIGNING OPTION CAP HIT DEAD CAP YEARLY CASH  
2019 Contract details by year 26       $11,750,000 $38,000,000    
2020 Contract details by year 27       $15,750,000 $26,250,000    
2021 Contract details by year 28       $18,750,000 $10,500,000    

POTENTIAL OUT: 2022, 3 YR, $51,500,000; $5,250,000 DEAD CAP

2022 Contract details by year 29       $21,750,000 $5,250,000  

 

I don't think that Spotrac is correct in how they are determining the Cap-hit each year for Grady's new contract.  If you look at the details of the contract, there is an $18 million Signing Bonus, which Spotrac is correctly prorating over the 4-year contract period at $4,500,000 million per year. There is also an Option Bonus of $3 million, which will be paid at the beginning of the second year of the contract, ie in 2020. Option Bonuses are prorated over the remaining contract term, which should be for the remining  3 years of the contract or $1 million per year for 2020, 2021, and 2022.  However, Spotrac prorated the Option Bonus over the entire 4-year contract period at $750,000 per year beginning in 2019, which I believe is in error. I don't think there should be any prorated Option bonus in 2019, and that there should be $1 million prorated option bonus beginning in 2020, and not Spotrac's $750,000 prorated amount.

https://www.spotrac.com/nfl/atlanta-falcons/grady-jarrett-16863/

 

If I am correct in this matter, then Grady's Cap-hit should be $11 million in 2019 (not $11,750,000), $16 million in 2020 (not $15,750,000), $19 million in 2021 (not $18,750,000) and $22 million in 2022 (not $21,750,000).

An excerpt from a great article on the Salary-Cap as follows:

"So, what is the difference between a Signing Bonus, Option Bonus and a Roster Bonus?

In each case, the bonus is a payment to the player that is contingent on the player signing a new contract (Signing Bonus) or remaining with the team (Option Bonus or Roster Bonus).  For the player, it really isn’t that important from his perspective what type of bonus it is, because he’s getting paid the bonus, regardless of what it’s called.  From the perspective of the Salary Cap, the type of bonus is important because of the way that is counts against the Salary Cap.

Roster Bonuses count fully in the year in which they are paid.

Signing Bonuses and Option Bonuses are prorated over the length of the player’s contract (or the remaining years of the players contract, in the case of an Option Bonus), up to a CBA-mandated maximum of 5 years.

OK, so how then is a player’s contract evaluated for Salary Cap purposes?

By way of example, let’s say Player X signs a 5-year, $40M contract that contains a Signing bonus of $10M, an Option Bonus of $4M, payable in year 2 and a Roster Bonus of $1M also payable in year 2.  The contract includes base salaries (P5) of $1M, $3M, $6M, $7M and $8M over the course of the 5 years.

The Signing Bonus of $10M will be prorated over the 5 years of the contract and will count $2M against the Salary Cap in each year of the Contract.

The 2nd year Option Bonus will be prorated over the 4 remaining years of the contract and will count $1M in each of those years.

The 3rd year Roster Bonus will count 100% in the 2nd year, assuming the player is still on the team’s roster in year 2 (Roster Bonuses are most often payable if the player is on the team’s roster on the 5th day of the league year)."

https://russellstreetreport.com/salarycap/nfl-salary-cap-faqs/

 

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18 hours ago, TheDirtyWordII said:

What was very smart was to front load the deal...it only creates an additional $3.5M this year, but who cares.  Team is set...$3.5M allows for veteran addition flexibility like a Bruce Irvin if such an opportunity presents itself.

By front loading, the salary’s in Years 2-4 aren’t so onerous.

Plus it gives us an out in Year 4.  It saves 15 million on the CAP if we release him after 2021 season.  Just don’t see us keeping him at 22 million unless he is getting double digit sacks in 2020 & 2021

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2 hours ago, FalconsIn2020 said:

Plus it gives us an out in Year 4.  It saves 15 million on the CAP if we release him after 2021 season.  Just don’t see us keeping him at 22 million unless he is getting double digit sacks in 2020 & 2021

But at that point, you’re likely extending him as he’d only be entering his Year 29 season.  At least that’d be the hope...sacks aren’t his value.  Havoc is.

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1 minute ago, TheDirtyWordII said:

But at that point, you’re likely extending him as he’d only be entering his Year 29 season.  At least that’d be the hope...sacks aren’t his value.  Havoc is.

Yup.  If he produces, you extend and minimize the 2022 CAP implications.   It’s a clever contract by TD.  I’m a bit surprised Grady camp allowed for such an unknown in Year 4

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1 hour ago, FalconsIn2020 said:

Yup.  If he produces, you extend and minimize the 2022 CAP implications.   It’s a clever contract by TD.  I’m a bit surprised Grady camp allowed for such an unknown in Year 4

Is it unknown for him?  $42.5M in guarantees the next 3 years...and either 1) FA at 29 2). Extension which likely accelerates that $16.5M into a lot of upfront money.

 

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