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Cap space for next season…
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02-08-2023, 06:05 PM
(This post was last modified: 02-08-2023, 06:12 PM by The Real Marty. Edited 1 time in total.)
(02-08-2023, 01:44 PM)rpr52121 Wrote: So I've reading about how the Eagles are doing interesting things with their contracts using optional bonuses tied to automatic void years in order to create extra cap space and flexibility. Probably adding voidable years allows the cap hit from the signing bonus to be spread out over more years. Only trouble is, when the voidable years are voided, all the remaining signing bonus is accelerated onto the cap. Like if a signing bonus is spread over a 3-year contract, it hits the cap over 3 years- 1/3, 1/3, 1/3. But if it's spread over 6 years, it hits the cap 1/6, 1/6, 1/6, 1/6, 1,6, 1/6. But if the last 3 years of that 6-year contract are voided, then the cap hit from the signing bonus winds up spread over 3 years as 1/6, 1/6, 2/3. Voiding the last 3 years of that contract accelerates the last 3/6 of the signing bonus onto the 3rd year of the contract. All you've done is shove more of that signing bonus into the last non-voidable year of the contract. It would also work when you convert salary to bonus in a simple restructuring. You can spread that bonus out over more years, but when you void the last few years, all that bonus comes back onto the salary cap. I'm really just guessing. Someone else may know more. |
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