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NFC South's $5 million club


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#11 panthers55

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Posted 01 February 2012 - 04:46 PM

I think folks who keep talk about restructuring these contracts don't understand the process or what happens. Most times restructuring involves turning salary money into upfront signing money which requires you to extend the player for a few more years like we did with Delhomme or they have to have several years left on their deal and the salary has to be going down not going up to not give you a huge hit down the road. This is how I think it works. Correct me if I am full of it...........:D

For example smitty will cost us a cap hit of 10.7 million in 2012. His salary for 2012 is 7.75 million. That means that the other 3 million is the cap hit for the signing bonus he received in 2007. Since he is a free agent in 2013 we couldn't restructure his current contract as there is nothing to defer. We could extend him for 4 years for example which would allow us to take some of that 7.75 million in salary and pay it as a signing bonus which would be spread out over the new contract. For 2012, you will be on the hook for the 3 million signing bonus under the old contract, the prorated part of the new contract signing bonus plus whatever part of the 2012 salary that still applies. So maybe his cap hit goes down 2 or 3 million. The reason you would do that is because the cap is going to go way up when that TV deal hits so we could afford to pay him more down the road. The reason you wouldn't do it is whether you think he will still be playing at 37-38 years of age.

Travelle you might not restructure unless you thought he would be here for several years. His salary in 2012 is 5.7 million and in 2013 is 5.9 million. But his guaranteed money was only 12 million. If you cut him today you would be on the hook for 4 million (2 million for 2012 and 2 million for 2013). If you cut him as of June 1st you can take that hit over 2 years I think. If you do nothing you are on the hook for a cap hit of 7.6 in 2012 and close to 8 million for 2013. If you restructure him you end up saving a million or two this year but add that money on to 2013 making it unlikely you are going to pay him 10 million so you pay a premium for him to play 1 year. If you cut him after this year you end up with several million in dead cap space. If you extend him for a few years you lower the cap hit for 2012 but better make sure you plan to keep him otherwise you have a ton of dead cap space if you let him go down the road.

Clear as mud right??

Edited by panthers55, 01 February 2012 - 04:52 PM.


#12 panthers55

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Posted 01 February 2012 - 04:56 PM

How much will we be paying Stewart. He will probably make 10% more than D Wllms


We will likely give him more money than Williams guaranteed and as a tradeoff backload it so that we can take advantage of the higher cap down the road. With Williams being front loaded and Stewart being backloaded we don't end up having to pay them a ton of money at any one time. When Stewart's cap hit is going up, Williams will be going down.

#13 thunderraiden

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Posted 01 February 2012 - 04:58 PM

I think folks who keep talk about restructuring these contracts don't understand the process or what happens. Most times restructuring involves turning salary money into upfront signing money which requires you to extend the player for a few more years like we did with Delhomme or they have to have several years left on their deal and the salary has to be going down not going up to not give you a huge hit down the road. This is how I think it works. Correct me if I am full of it...........:D

For example smitty will cost us a cap hit of 10.7 million in 2012. His salary for 2012 is 7.75 million. That means that the other 3 million is the cap hit for the signing bonus he received in 2007. Since he is a free agent in 2013 we couldn't restructure his current contract as there is nothing to defer. We could extend him for 4 years for example which would allow us to take some of that 7.75 million in salary and pay it as a signing bonus which would be spread out over the new contract. For 2012, you will be on the hook for the 3 million signing bonus under the old contract, the prorated part of the new contract signing bonus plus whatever part of the 2012 salary that still applies. So maybe his cap hit goes down 2 or 3 million. The reason you would do that is because the cap is going to go way up when that TV deal hits so we could afford to pay him more down the road. The reason you wouldn't do it is whether you think he will still be playing at 37-38 years of age.

Travelle you might not restructure unless you thought he would be here for several years. His salary in 2012 is 5.7 million and in 2013 is 5.9 million. But his guaranteed money was only 12 million. If you cut him today you would be on the hook for 4 million (2 million for 2012 and 2 million for 2013). If you cut him as of June 1st you can take that hit over 2 years I think. If you do nothing you are on the hook for a cap hit of 7.6 in 2012 and close to 8 million for 2013. If you restructure him you end up saving a million or two this year but add that money on to 2013 making it unlikely you are going to pay him 10 million so you pay a premium for him to play 1 year. If you cut him after this year you end up with several million in dead cap space. If you extend him for a few years you lower the cap hit for 2012 but better make sure you plan to keep him otherwise you have a ton of dead cap space if you let him go down the road.

Clear as mud right??

So basically, pretty good chance we cut Wharton and get an OG in the draft?

#14 panthers55

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Posted 01 February 2012 - 05:09 PM

So basically, pretty good chance we cut Wharton and get an OG in the draft?

If we think we can find a starter we might. More likely if we get rid of Wharton we plug in Bernadeau or Schwartz. I think we are likely to keep him given the holes we have to fill on the right side already with Otah up in the air. Gross and Wharton have been a pair for years which helps consistency.

#15 CRA

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Posted 01 February 2012 - 05:10 PM

This would be Steve's, what? Third contract with us? I know Steve's current contract is a lot under the cap.


and? all that matters is what he can do for you now and for how long.

Smitty is basically the same age as Williams when you look at the positions. Why would Smitty want a backloaded deal where all his money is packaged where it would make the most sense to part ways w/ him. Smitty is going to look after Smitty.

#16 pantherclaw

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Posted 01 February 2012 - 06:08 PM

Wharton is well worth his contract.
Could even see the panthers extending him, to help with the cap.
Not knowing how many yars is left on gross' contract, hard to say if a restructure will help much. He could also be extended again, this time for RT money...would give him more money now, and we'd have him to move to RT if and when we find his replacement at LT.
Johnson's and Williams' contract won't be touched.
They can tear up Davis' contract, and give him a new, cap friendly contract.

Gamble's won't be touched, unless he's extended, which wouldn't be the best decision as he'd cost more money in a new coontract.

#17 panthers55

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Posted 01 February 2012 - 06:14 PM

and? all that matters is what he can do for you now and for how long.

Smitty is basically the same age as Williams when you look at the positions. Why would Smitty want a backloaded deal where all his money is packaged where it would make the most sense to part ways w/ him. Smitty is going to look after Smitty.


Backloading or front loading isn't the biggest issue. How much guaranteed money they receive is the issue as it is the only thing they can count on. If they get quite a bit guaranteed, they will be glad to back load it especially if they know the cap is going to expand down the road. That way they believe they might actually receive it.

#18 jtnc

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Posted 01 February 2012 - 06:28 PM

Yes that is what I was saying give him a lot of the money up front and backload his yearly salary so it can be friendly on the cap.

#19 Wither

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Posted 01 February 2012 - 06:49 PM

They will probably do none of what you all suggested. Thank god.



Joking.