Cap Out Problem?

[jetpunk2000]

I was wondering what the benefit to the player would be for a cap-out offer, unless the way it's implemented is broken. Here's what the player currently makes:

Season 1 - $4.0 mil base/1.08 mil bonus
Season 2- $4.75 mil base/1.08 mil bonus
Season 3- $6.5 mil base/1.08 mil bonus
Season 4- $7.0 mil base/1.08 mil bonus

This is what he requested to renegotiate:

5 years- 18.7 mil bonus with the following bases:

Season 1- 1.4 mil
Season 2- 8.21 mil
Season 3- 10.52 mil
Season 4- 12.62 mil
Season 5- 14.85 mil

This was the "Cap-Out" offer, which he accepted

4 years- 3.32 mil bonus with bases:

Season 1- 680,000
Season 2- 4.75 mil
Season 3- 6.5 mil
Season 4- 7.0 mil

The guy is a relatively productive receiver. Does the cap out have a connection to loyalty? Where a more loyal player is willing to take less to help a cap troubled team? This guy has a 94 in loyalty.

[cthomer5000]

Well, in real life the cap-out is basically always a positive for the player. All it does is take (non-guaranteed) base salary and convert it to (guaranteed) signing bonus. They would probably agree to it in any situation.

The only side effect is it increases the odds you will:

1. Be released at some point when your salary gets totally out of hand, leaving the team with some hefty "dead money"

2. Increase the odds you will need to re-negotiate later to alleviate the cap issues.

[jetpunk2000]

Ahhh....Now I get it. Thanks

[cthomer5000]

Originally posted by jetpunk2000
Ahhh....Now I get it. Thanks

No problem. I think unless you closely follow NFL contract news (as I do), this is the first time most people are seeing this sort of thing. It really has become very commonplace, and I was glad to see it as a new feature.

Taking a closer look at your example from above, here was your WR's original contract:

Season 1 - $4.0 mil base/1.08 mil bonus
Season 2- $4.75 mil base/1.08 mil bonus
Season 3- $6.5 mil base/1.08 mil bonus
Season 4- $7.0 mil base/1.08 mil bonus

and the "cap out" offer:

$ 3.32 million dollar bonus, and the following base salaries
Season 1- 680,000
Season 2- 4.75 mil
Season 3- 6.5 mil
Season 4- 7.0 mil

All you've done is knocked his current base salary (4.0 mill) down to the minimum for him (680,000) and handed him the difference (3.32 mill) in a bonus. You've saved yourself some cap room for this year, and pushed back the burden a bit. Post negotiation, his deal would look like this:

Season 1 - $680 thousand base/1.91 bonus
Season 2- $4.75 mil base/1.91 mil bonus
Season 3- $6.5 mil base/1.91 mil bonus
Season 4- $7.0 mil base/1.91 mil bonus

[Ben E Lou]

OK. This thread is now linked in the sticky.