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Let's look at how a Brees restructure would potentially work
Posted on 1/14/14 at 11:25 am
Posted on 1/14/14 at 11:25 am
Brees' contract was 5 years for $100 Million with a signing bonus of $37 million.
His current signing bonus hits each year at $7.4 million. That is fixed for the most part as a cap hit each year.
He is owed a base salary of $10.75 M next season + his cap hit + a $250,000 workout bonus.
Let's convert his 2014 base salary into a signing bonus without extending his contract. That spreads it out over 3 years at about $3.6 M/year.
Thus his 2014 cap hit drops from $18.4 M to $11.25 M and a savings of a ~ $7 Million on the cap.
Here's the kicker, Brees' 2015 and 2016 cap hits would then go up to $30 and $31 Million dollars.
Outside of extending the contract over say 2 or 3 years for no additional money, the Saints will be strapped each season.
It may happen, but realistically, next year isn't the killer. 2015 and 2016 will be.
His current signing bonus hits each year at $7.4 million. That is fixed for the most part as a cap hit each year.
He is owed a base salary of $10.75 M next season + his cap hit + a $250,000 workout bonus.
Let's convert his 2014 base salary into a signing bonus without extending his contract. That spreads it out over 3 years at about $3.6 M/year.
Thus his 2014 cap hit drops from $18.4 M to $11.25 M and a savings of a ~ $7 Million on the cap.
Here's the kicker, Brees' 2015 and 2016 cap hits would then go up to $30 and $31 Million dollars.
Outside of extending the contract over say 2 or 3 years for no additional money, the Saints will be strapped each season.
It may happen, but realistically, next year isn't the killer. 2015 and 2016 will be.
4
Posted on 1/14/14 at 11:34 am to Geauxgurt
You cant convert without extending. Look how ridiculous those numbers are. 
Not enough years to spread that shite out. He needs a two year extension to give us several cap friendly seasons, not just one.
This is an option Jimmy Johnson says is effective and works:
Not enough years to spread that shite out. He needs a two year extension to give us several cap friendly seasons, not just one.
This is an option Jimmy Johnson says is effective and works:
Posted on 1/14/14 at 11:41 am to Geauxgurt
I love how you put things in a way I can easily understand.
Posted on 1/14/14 at 11:44 am to JPLIII
"We have to restructure Brees before we know whats in it".
Posted on 1/14/14 at 11:45 am to Geauxgurt
quote:
next year isn't the killer. 2015 and 2016 will be.
this is when a restructure will happen. I don't remember where, but I read that there's little benefit to restructuring him this season. Doesn't mean it won't happen, but it's highly doubtful
Posted on 1/14/14 at 11:46 am to Geauxgurt
quote:
Outside of extending the contract over say 2 or 3 years for no additional money
how does this work? we're going to extend your contract for 2 more years yet pay you zero dollars those years. Yay... I don't get it.
Posted on 1/14/14 at 11:47 am to goatmilker
I was bein facetious man.
Posted on 1/14/14 at 12:29 pm to Chad504boy
quote:
how does this work? we're going to extend your contract for 2 more years yet pay you zero dollars those years. Yay... I don't get it.
I was referencing that people claiming he won't get more money in his restructure are a bit naive. If Brees is willing to 'extend', it won't be for free and out of the goodness of his heart.
Realistically, Saints likely won't restructure Brees next year, and when they do it will be fter next season where he's only guaranteed pay from his signing bonus. In other words, after next season, you owe him $11-$12 million on top of what remains of his signing bonus, and your leverage in the situation at least begins there.
Posted on 1/14/14 at 2:24 pm to Geauxgurt
quote:
I was referencing that people claiming he won't get more money in his restructure are a bit naive
Isn't that what Brady basically did? Swapped a couple of extra years for guaranteed money?
Posted on 1/14/14 at 2:55 pm to elprez00
quote:
Isn't that what Brady basically did? Swapped a couple of extra years for guaranteed money?
Pretty much. Basically Brees is owed $50 million on his contract as of this season should he play it out. Realistically, the Saints aren't going to take cap hits of $26 M and $27 M in 2015 and 2016, it's just not feasible. As of right now, Brees is likely to surely get the $11 Million next year (he's not getting cut), but the Saints could say we'll give you the $39 million left over 4 years or The $50 million left over 5 years if he extended after next season or before it respectively.
He could then convert the $50 million into a signing bonus spread over 5 years. The shifts it to $10 Million per year, and while it wouldn't save but $1 million this season, it would save the Saints $16 and $17 Million in 2015 and 2016.
Another option is to guarantee him $40 M of the $50 million and thus an $8 million signing bonus per year.
It would save the saints the following each year theoretically:
2014 - $3 million
2015 - $8.5 million ($17.9 Million cap hit)
2016 - $9.5 Million ($18.9 Million cap hit)
2017 - now owe cap money to him at $10.5 Million
2018 - now owe cap money to him at $10.5 Million
So you'd still have big cap hits with it in 2015 and 2016, but they'd be significantly lower than currently set.
Remember, this is assuming Brees takes no extra money to extend it.
Posted on 1/14/14 at 5:28 pm to Geauxgurt
If a restructure happens this year, it will most likely include an extension. The extension will include wages for the year's they believe he will play. So if they think he will play five more years then they extend him three years on top of his current contract but only have wages for two for the years. He made a lot of money this year and will make a lot of money with his money spread out over more years while still adding minimal money to the extra years. It is a win-win situation. If it gets to the point that he is still going to play into the "no salary" year, then you restructure at that point as well.
Posted on 1/14/14 at 6:19 pm to Geauxgurt
2014 - $3 million
2015 - $8.5 million ($17.9 Million cap hit)
2016 - $9.5 Million ($18.9 Million cap hit)
2017 - now owe cap money to him at $10.5 Million
2018 - now owe cap money to him at $10.5 Million
That looks doable.
2015 - $8.5 million ($17.9 Million cap hit)
2016 - $9.5 Million ($18.9 Million cap hit)
2017 - now owe cap money to him at $10.5 Million
2018 - now owe cap money to him at $10.5 Million
That looks doable.
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