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Christian Watson signs a 4 year 110m extension
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<blockquote data-quote="Pokerbrat2000" data-source="post: 1098708" data-attributes="member: 7261"><p>I found this online and liked some of the explanations of cap tricks.</p><p></p><p>1. The Cap Manipulation Trick</p><ul> <li data-xf-list-type="ul"><strong>The Rule:</strong> In the NFL, a signing bonus does not count entirely against the cap in the year it is paid. Instead, it can be spread evenly (prorated) over the life of the contract, up to a maximum of <strong>5 years</strong>.</li> <li data-xf-list-type="ul"><strong>The Application:</strong> If a team gives a player a $10 million signing bonus on a standard 2-year deal, the cap hit is $5 million per year. By adding 3 "void years" (making it a 5-year contract on paper), the team can stretch that $10 million hit to just <strong>$2 million per year</strong>, freeing up $3 million in immediate cap space.</li> </ul><p></p><p>2. What Happens When the Years Void?</p><ul> <li data-xf-list-type="ul"><strong>Accelerated Cap Hit:</strong> Once the player reaches the end of the actual contract and the void years hit, the team no longer spreads out the bonus money.</li> <li data-xf-list-type="ul"><strong>Dead Money:</strong> All of the remaining prorated bonus money that was pushed into those void years accelerates and hits the salary cap as <strong>dead money</strong> in one lump sum.</li> <li data-xf-list-type="ul"><strong>Free Agency:</strong> At that point, the player automatically becomes a free agent and can sign with any other team, while the original team absorbs the remaining cap hit.</li> </ul><p>Teams use this strategy to maximize their competitive window right now, relying on the assumption that the overall salary cap will increase every year, making those future dead cap hits easier to absorb.</p></blockquote><p></p>
[QUOTE="Pokerbrat2000, post: 1098708, member: 7261"] I found this online and liked some of the explanations of cap tricks. 1. The Cap Manipulation Trick [LIST] [*][B]The Rule:[/B] In the NFL, a signing bonus does not count entirely against the cap in the year it is paid. Instead, it can be spread evenly (prorated) over the life of the contract, up to a maximum of [B]5 years[/B]. [*][B]The Application:[/B] If a team gives a player a $10 million signing bonus on a standard 2-year deal, the cap hit is $5 million per year. By adding 3 "void years" (making it a 5-year contract on paper), the team can stretch that $10 million hit to just [B]$2 million per year[/B], freeing up $3 million in immediate cap space. [/LIST] 2. What Happens When the Years Void? [LIST] [*][B]Accelerated Cap Hit:[/B] Once the player reaches the end of the actual contract and the void years hit, the team no longer spreads out the bonus money. [*][B]Dead Money:[/B] All of the remaining prorated bonus money that was pushed into those void years accelerates and hits the salary cap as [B]dead money[/B] in one lump sum. [*][B]Free Agency:[/B] At that point, the player automatically becomes a free agent and can sign with any other team, while the original team absorbs the remaining cap hit. [/LIST] Teams use this strategy to maximize their competitive window right now, relying on the assumption that the overall salary cap will increase every year, making those future dead cap hits easier to absorb. [/QUOTE]
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Christian Watson signs a 4 year 110m extension
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