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Projecting the 2015 restructure of Brees' contract
Posted on 3/13/14 at 10:38 am
Posted on 3/13/14 at 10:38 am
As has been pointed out here on numerous occasions, Brees' contract was never going to be restructured this year...couldn't save enough cap space to make it worth while. It is now projected that the cap for 2015 should be somewhere near the $140 Mill number. If that happens, that increase from the $133 Mill this year will be almost enough money to cover Brees' increased cap number; the Saints will absolutely redo the contract next year.
Here are the numbers for 2015 and 2016:
2015
$19 million salary and reporting bonus
Cap hit: $26.4M ($19M + $7.4M bonus proration)
2016
$20 million salary and reporting bonus
Cap hit: $27.4M ($20M + $7.4M bonus proration)
How do you think the team restructures that helps now but doesn't completely destroy the team down the road?
My guess is that they extend the contract for two years at $8 mill a year in salary and convert $19 mill of the salary for 2015 and 2016 into a signing bonus. The numbers would look like this:
2015
Total salary $10M
Cap hit: $22.15M ($10M + $12.15M bonus proration)
2016
Total salary $10M
Cap hit: $22.15M ($10M + $12.15M bonus proration)
2017
Total salary: $8M
Cap hit: $15.25M ($8M +$7.25M bonus proration)
2018
Total salary $8M
Cap hit: $15.25M ($8M +$7.25M bonus proration)
Hopefully Brees stays healthy and can produce. We will be at high risk of having dead money somewhere down the road.
Here are the numbers for 2015 and 2016:
2015
$19 million salary and reporting bonus
Cap hit: $26.4M ($19M + $7.4M bonus proration)
2016
$20 million salary and reporting bonus
Cap hit: $27.4M ($20M + $7.4M bonus proration)
How do you think the team restructures that helps now but doesn't completely destroy the team down the road?
My guess is that they extend the contract for two years at $8 mill a year in salary and convert $19 mill of the salary for 2015 and 2016 into a signing bonus. The numbers would look like this:
2015
Total salary $10M
Cap hit: $22.15M ($10M + $12.15M bonus proration)
2016
Total salary $10M
Cap hit: $22.15M ($10M + $12.15M bonus proration)
2017
Total salary: $8M
Cap hit: $15.25M ($8M +$7.25M bonus proration)
2018
Total salary $8M
Cap hit: $15.25M ($8M +$7.25M bonus proration)
Hopefully Brees stays healthy and can produce. We will be at high risk of having dead money somewhere down the road.
This post was edited on 3/13/14 at 12:07 pm
3
Posted on 3/13/14 at 10:42 am to adono
Nice work.
It was never that we wouldn't save much money as we would have saved about $9m, but it would have messed up the possible extension by making his eventual dead money even higher.
It was never that we wouldn't save much money as we would have saved about $9m, but it would have messed up the possible extension by making his eventual dead money even higher.
Posted on 3/13/14 at 10:48 am to adono
Looking at it vs. Brady's extension, I think it'll be even lower than you're projecting. Brady hits the cap for $14.8m, $13m, $14m, and $15m.
Then again Brees' deal was more backloaded to begin with.
Then again Brees' deal was more backloaded to begin with.
Posted on 3/13/14 at 10:58 am to bonethug0108
quote:
Then again Brees' deal was more backloaded to begin with.
I don't know how much lower you can get this. The only thing you can deal with is the salary. The lower you make that the higher the bonus proration goes and the higher the risk of dead money.
Posted on 3/13/14 at 11:15 am to adono
That's why I backtracked a bit. I guess it depends how much Brees would be willing to cut us a break. We don't HAVE to turn his salary into bonus(at least not all of it).
But hell, technically he could ask for an even higher base salary. So who knows where it will go.
Edit:
I see where the issue is. You kept the $7.4m original into the future years. That would come off those last two years, drastically lowering the numbers.
But hell, technically he could ask for an even higher base salary. So who knows where it will go.
Edit:
I see where the issue is. You kept the $7.4m original into the future years. That would come off those last two years, drastically lowering the numbers.
This post was edited on 3/13/14 at 11:17 am
Posted on 3/13/14 at 11:23 am to adono
2015
Base + Misc. Bonuses: $5m
Signing Bonus: $14.65m
Cap hit: $19.65m
2016
Base + Misc. Bonuses: $5m
Signing Bonus: $14.65m
Cap hit: $19.65m
2017
Base + Misc. Bonuses: $8m
Signing Bonus: $7.25m
Cap hit: $15.25m
2018
Base + Misc. Bonuses: $8m
Signing Bonus: $7.25m
Cap hit: $15.25m
That's an adjustment to your original example with more money turned into bonus and the two new years corrected.
Base + Misc. Bonuses: $5m
Signing Bonus: $14.65m
Cap hit: $19.65m
2016
Base + Misc. Bonuses: $5m
Signing Bonus: $14.65m
Cap hit: $19.65m
2017
Base + Misc. Bonuses: $8m
Signing Bonus: $7.25m
Cap hit: $15.25m
2018
Base + Misc. Bonuses: $8m
Signing Bonus: $7.25m
Cap hit: $15.25m
That's an adjustment to your original example with more money turned into bonus and the two new years corrected.
Posted on 3/13/14 at 11:49 am to bonethug0108
I don't know if he's getting $16 million in new salary for those last years. Brady didn't really add much more money if correct, and so adding another $16 million isn't likely. Truth is Brees probably doesn't see the full $100 million as it was from the original contract.
He likely restructures with a very small new salary or even just extending out the money by ensuring he has more guaranteed money over the life. If you guarantee his remaining contract or a significant portion of what's left, he should be thankful since he'll see that money up front again.
He likely restructures with a very small new salary or even just extending out the money by ensuring he has more guaranteed money over the life. If you guarantee his remaining contract or a significant portion of what's left, he should be thankful since he'll see that money up front again.
Posted on 3/13/14 at 11:53 am to bonethug0108
The more I look at the next couple of years, the more I don't see it benefiting the team to restructure his contract. Next year would be smarter than this year due to the inflation of his cap hit every year. There is no way to predict how many more years he will play and actually be under contract, therefore making it really hard to see into the future and predict the amount of damage you can take from restructuring at this time. The one player I can currently see being a prime candidate to restructure in 2014 or 2015 is Jahri Evans. Restructuring his contract this year would actually be quite smart.....
his 2014 numbers are
Base Salary: $6.8 MIL
Signing Bonus: $2.2 MIL
MISC: $2.2 MIL
Cap Hit: $8.5 MIL
Let's say you take that base salary and reduce it by $3.8 MIL and prorate it over the final two years of his contract.
That brings his Cap numbers for each year to:
2014: $7.2 MIL
2015: $12.9 MIL
2016: $12.1 MIL
Saving the team $3.8 MIL this year to use partially on Graham or possibly Strief and draft picks.
his 2014 numbers are
Base Salary: $6.8 MIL
Signing Bonus: $2.2 MIL
MISC: $2.2 MIL
Cap Hit: $8.5 MIL
Let's say you take that base salary and reduce it by $3.8 MIL and prorate it over the final two years of his contract.
That brings his Cap numbers for each year to:
2014: $7.2 MIL
2015: $12.9 MIL
2016: $12.1 MIL
Saving the team $3.8 MIL this year to use partially on Graham or possibly Strief and draft picks.
Posted on 3/13/14 at 11:56 am to bonethug0108
quote:
I see where the issue is. You kept the $7.4m original into the future years. That would come off those last two years, drastically lowering the numbers
Thanks. You're 100% correct.
This post was edited on 3/13/14 at 12:04 pm
Posted on 3/13/14 at 12:07 pm to Bduhon55
Lewis should be the first restructure this year(saves about $2m and adds only about $500k to each future year). And he is going nowhere.
Evans would be the first guy I'd go to if we need more than that. He saves the second most after Brees and I trust him being here more next year than Grubbs and Colston.
But extending Brees definitely helps. In my example we save $6.4m and $7.4m on the cap in his currently contracted years(which is a good chunk though less than some may have expected; though we could save even more if structured differently).
Then we get him likely until the end(or close to it) of his career for a bargain at $15m per(which is about what Brady is getting; don't think he'll go much lower than that).
Evans would be the first guy I'd go to if we need more than that. He saves the second most after Brees and I trust him being here more next year than Grubbs and Colston.
But extending Brees definitely helps. In my example we save $6.4m and $7.4m on the cap in his currently contracted years(which is a good chunk though less than some may have expected; though we could save even more if structured differently).
Then we get him likely until the end(or close to it) of his career for a bargain at $15m per(which is about what Brady is getting; don't think he'll go much lower than that).
This post was edited on 3/13/14 at 12:08 pm
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