Panthers Converted OT Matt Kalil's $10M Option Bonus Into A Signing Bonus Guaranteeing He'll Be On Roster In 2018

[Icege]

46 minutes ago, Mr. Scot said:

This wasn't referred to as a roster bonus. It was an "option bonus".

What that means? Who knows?

What I do know? The reporter who broke this says there's no cap benefit. The guys at Spotrac who do nothing but analyze the cap say there's no benefit. In fact, I can't find anybody who says there's a benefit to it at all, other than to Matt Kalil.

Until someone else comes out and explains that there's some kind of cap savings that comes with this, every indication right now is just that this was a favor.

Maybe we'll get different news later, but that's all we've got at the moment.

 

 

16 minutes ago, LinvilleGorge said:

The way I'm reading it is that it that the option bonus was basically structured as a recurring annual roster bonus instead of a lump sum roster bonus. This would make since as to why they're saying that this provides no current cap relief while negatively impacting our future cap flexibility. Hurney basically just removed the "option" from the option bonus by giving Kalil a lump sum payout.

If that's really what happened he should be fired for it. Straight up.

I'm really hoping there's something here that I'm missing or reading wrong.

 

 

51 minutes ago, Icege said:

49ers did this with Staley a few years ago

https://www.ninersnation.com/2015/4/6/8353311/joe-staley-contract-adjustment-turns-option-bonus-into-signing-bonus

Possible explanation:

https://overthecap.com/explaining-the-joe-staley-salary-cap-charge-increase/

 

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This is one of those little NFL cap valuations that causes some confusion. The NFL considers all options exercised, from a salary cap perspective, once the new League Year begins regardless of the date that the option decision is actually due. Whether the option bonus is due the 1st day of the League Year or the last day (such as Rob Gronkowski’s $10 million option due in March of 2016) once the League Year begins the cap charge remains. For Staley that bonus would have been due on April 1.

 

By converting the bonus to a different structure the NFL will treat it as an entirely new bonus. So San Francisco gets a $1.2 million charge for the signing bonus AND a $1.2 million charge for the option bonus. To remedy the situation the 49ers will receive a salary cap credit in 2016 of $1.2 million. This is the point at which the NFL revalues contracts to see what money was actually paid versus what was counted on the salary cap. So 49ers fans can already know that they will receive at least a $1.2 million cap adjustment in 2016. Teams last year that took similar charges and received credits for options unpaid were the Panthers (Steve Smith) and Patriots (Brandon Lloyd).

 

Why did the 49ers want to convert the option to a signing bonus?  Thats likely in part due to the recent retirements of Patrick Willis and Chris Borland. If the 49ers simply exercised an option on Staley for $6 million and he decided to retire in 2016, Staley would keep the entire $6 million payment. If, however, a signing bonus is utilized then Staley would be required to pay back $4.8 million if he retired. This is a common practice in the NFL though the timing of the 49ers decision is later than most. Staley still has a $4 million option bonus in his contract due in 2016.

To my understanding, this puts the team in a situation where they'll receive a cap credit next year as well as allows them to recoup money should Kalil end up retiring for whatever reason.

[Mr. Scot]

David Newton confirms no cap savings and explains why it was done (Link)

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This was a managerial move that does not change Kalil’s 2018 salary cap hit of $6.9 million.

 

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The Panthers had to make a decision on the option bonus between the first and fifth day of the 2018 league year. They made the move because a signing bonus is easier to recover if the player is suspended or retires.

[ItsPantone278]

NFL live reported it was Ryan kalil which would make since with the retirement thing.

[thefuzz]

4 minutes ago, Mr. Scot said:

David Newton confirms no cap savings and explains why it was done (Link)

 

If that's the reason, Hurney should be shown the door.

The absolute last thing we needed to do with the Kalil contract was touch it.  We had a decent way out of the contract after the 18 season, and that now looks harder, and more expensive to consider.

So so so stupid, and predictable.

[Mr. Scot]

4 minutes ago, ItsPantone278 said:

NFL live reported it was Ryan kalil which would make since with the retirement thing.

If it's Ryan, that'd be a whopper of a correction.

Right now though, every other source says it's Matt.

 

[Mr. Scot]

2 minutes ago, thefuzz said:

If that's the reason, Hurney should be shown the door.

The absolute last thing we needed to do with the Kalil contract was touch it.  We had a decent way out of the contract after the 18 season, and that now looks harder, and more expensive to consider.

So so so stupid, and predictable.

It's conceivable that Hurney isn't the one behind it.

Based on reports so far though, it sounds like he is.

[Shocker]

11 minutes ago, Mr. Scot said:

David Newton confirms no cap savings and explains why it was done (Link)

 

Good so here's to hoping that the brothers Kalil both jump on their horses and ride off into the sunset after next season.

Oh and its Field Yates folks.  That snot nosed little dude on ESPN who snuck in the back door during lunch break.

[d-dave]

I wonder if his hip is having more issues: 

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They made the move because a signing bonus is easier to recover if the player is suspended or retires.

Maybe?  How many straws did I grab?

[thefuzz]

2 minutes ago, Mr. Scot said:

It's conceivable that Hurney isn't the one behind it.

Based on reports so far though, it sounds like he is.

I didn't like the Kalil contract, but at least we had an out....something that Hurney never gave us on his big signings.....now Hurney somehow figured out how to make a bad deal worse for the Panthers....somehow.

I wonder how much Beane is chuckling right now?

[Mr. Scot]

1 minute ago, d-dave said:

I wonder if his hip is having more issues: 

Maybe?  How many straws did I grab?

It's possible.

That said, the move cap wise means that his dead money for next year goes up.

[grimesgoat]

I think the way this works, if we do nothing, the 10 mil hits the cap this year. 

With the conversion, we spread the hit over 4 years.

By doing this, Kalil's hit is 6.9m and we have about 10m in cap (after we pay our draft picks).  Not doing this would have taken us down to about 2.5m in cap after draft picks.  We pretty much had to do this in order to maintain any flexibility and hopefully sign Peppers and extend Funchess and/or Williams.

Cuts of Johnson and Stewie are surely on the horizon as we still have a number of holes to fill and 10m will not go far.

[Mr. Scot]

Just now, grimesgoat said:

I think the way this works, if we do nothing, the 10 mil hits the cap this year. 

With the conversion, we spread the hit over 4 years.

By doing this, Kalil's hit is 6.9m and we have about 10m in cap (after we pay our draft picks).  Not doing this would have taken us down to about 2.5m in cap after draft picks.  We pretty much had to do this in order to maintain any flexibility and hopefully sign Peppers and extend Funchess and/or Williams.

Cuts of Johnson and Stewie are surely on the horizon as we still have a number of holes to fill and 10m will not go far.

It was confirmed by Yates, Spotrac and Newton that it doesn't change his cap hit for this year.

[Ace_Aladdin]

4 minutes ago, grimesgoat said:

I think the way this works, if we do nothing, the 10 mil hits the cap this year. 

With the conversion, we spread the hit over 4 years.

By doing this, Kalil's hit is 6.9m and we have about 10m in cap (after we pay our draft picks).  Not doing this would have taken us down to about 2.5m in cap after draft picks.  We pretty much had to do this in order to maintain any flexibility and hopefully sign Peppers and extend Funchess and/or Williams.

Cuts of Johnson and Stewie are surely on the horizon as we still have a number of holes to fill and 10m will not go far.

CAP is currently at 17-20 million without Cuts  , after cuts/non extensions 27-30 million

- 7 Million for the rookies 

Total 20-23 Million in CAP space

Enough to Extend Norwell and other players with future CAP opening up with Vet players retiring.

 

[grimesgoat]

1 minute ago, Mr. Scot said:

It was confirmed by Yates, Spotrac and Newton that it doesn't change his cap hit for this year.

From Sportrac, the second bullet under Kalil states:

"2018 Option Bonus: $10M (must be exercised by 3/19/2018)
If not exercised, the $10M converts to salary, and $11M 2018 salary fully guarantees"