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Salary cap tactics questions
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<blockquote data-quote="TJV" data-source="post: 498414" data-attributes="member: 4300"><p><span style="font-size: 12px"><span style="font-family: 'arial'">The cap carryover definitely makes a difference but to fully "flesh out" the ramifications I think you have to use examples with signing bonuses and guaranteed money. For contracts such as the one in the OP, I agree - if there's no guaranteed money it doesn't matter except for the time value of money both to the player and the team. </span></span></p><p> </p><p><span style="font-size: 12px"><span style="font-family: 'arial'">According to the linked article below, the Packers still have about $13.5M in cap room even after signing Rodgers and Matthews. Without the carryover rule I'll bet Thompson and Ball would have used more of this year's cap on Rodgers' deal. </span></span></p><p> </p><p><span style="font-size: 12px"><span style="font-family: 'arial'">With regard to signing bonuses and "up front" money being important, don't forget about guaranteed money in the years beyond the first. IOW, guaranteed money is guaranteed money whether it's paid in year 1 or 3. A</span></span><span style="font-size: 12px"><span style="font-family: 'arial'">s an example, take a look at Rodgers' contract: He receives $35M in guaranteed money this year plus a $9.5M roster bonus in both 2014 and 2015 and those bonuses, unlike most roster bonuses are "guaranteed against skill and injury". No matter what, he gets those payments.</span></span></p><p> </p><p><span style="font-size: 12px"><span style="font-family: 'arial'">Here's an interesting aspect of Rodgers deal: His $35M signing bonus is only prorated over the first five years of the contract. IOW, if he is waived by the Packers after the 2017 season, he's owed no money and the cap hit is zero. I don't remember another contract in which the signing bonus isn't prorated over the entire term of the contract. </span></span></p><p> </p><p><span style="font-size: 12px"><span style="font-family: 'arial'">BTW, the second page of the linked Press Gazette article details Rodgers compensation for each year of the deal. </span></span></p><p> </p><p><span style="font-family: 'Arial'"><a href="http://www.packersnews.com/article/20130429/PKR01/304290330/Aaron-Rodgers-Clay-Matthews-deals-won-t-strain-Green-Bay-Packers-salary-cap" target="_blank">http://www.packersnews.com/article/20130429/PKR01/304290330/Aaron-Rodgers-Clay-Matthews-deals-won-t-strain-Green-Bay-Packers-salary-cap</a></span></p></blockquote><p></p>
[QUOTE="TJV, post: 498414, member: 4300"] [SIZE=3][FONT=arial]The cap carryover definitely makes a difference but to fully "flesh out" the ramifications I think you have to use examples with signing bonuses and guaranteed money. For contracts such as the one in the OP, I agree - if there's no guaranteed money it doesn't matter except for the time value of money both to the player and the team. [/FONT][/SIZE] [SIZE=3][FONT=arial]According to the linked article below, the Packers still have about $13.5M in cap room even after signing Rodgers and Matthews. Without the carryover rule I'll bet Thompson and Ball would have used more of this year's cap on Rodgers' deal. [/FONT][/SIZE] [SIZE=3][FONT=arial]With regard to signing bonuses and "up front" money being important, don't forget about guaranteed money in the years beyond the first. IOW, guaranteed money is guaranteed money whether it's paid in year 1 or 3. A[/FONT][/SIZE][SIZE=3][FONT=arial]s an example, take a look at Rodgers' contract: He receives $35M in guaranteed money this year plus a $9.5M roster bonus in both 2014 and 2015 and those bonuses, unlike most roster bonuses are "guaranteed against skill and injury". No matter what, he gets those payments.[/FONT][/SIZE] [SIZE=3][FONT=arial]Here's an interesting aspect of Rodgers deal: His $35M signing bonus is only prorated over the first five years of the contract. IOW, if he is waived by the Packers after the 2017 season, he's owed no money and the cap hit is zero. I don't remember another contract in which the signing bonus isn't prorated over the entire term of the contract. [/FONT][/SIZE] [SIZE=3][FONT=arial]BTW, the second page of the linked Press Gazette article details Rodgers compensation for each year of the deal. [/FONT][/SIZE] [FONT=Arial][url]http://www.packersnews.com/article/20130429/PKR01/304290330/Aaron-Rodgers-Clay-Matthews-deals-won-t-strain-Green-Bay-Packers-salary-cap[/url][/FONT] [/QUOTE]
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