Question On Your CAP (1 Viewer)

[Playmaker0017]

I’ve been trying to figure out why Bridgewater has a 4 million dead money hit on the Saints 2020 CAP. He wasn’t released and was on a one year deal. Any insight?

 

[soggymoss]

I’ve been trying to figure out why Bridgewater has a 4 million dead money hit on the Saints 2020 CAP. He wasn’t released and was on a one year deal. Any insight?

To save some cap space last year Loomis diverted 4 million to this season in the form of a voidable year..

Same thing we have been doing with Drew's deal

 

[Playmaker0017]

To save some cap space last year Loomis diverted 4 million to this season in the form of a voidable year..

Same thing we have been doing with Drew's deal

I see...thx. I thought voidable years were only on multi year deals.

 

[onanygivensunday]

The same is true for AJ Klein to the tune of $1.0M.

 

[onanygivensunday]

I see...thx. I thought voidable years were only on multi year deals.

Well, what was in reality a one-year deal became a two-year deal with year two being the voidable year.

The same will happen when Drew hangs them up... to the tune of $11.5M in 2021 if he retires after this year.

 

[Playmaker0017]

The same is true for AJ Klein to the tune of $1.0M.

Is the new CBA doing away with the voidable year that’s teams have been using?

 

[Playmaker0017]

Well, what was in reality a one-year deal became a two-year deal with year two being the voidable year.

The same will happen when Drew hangs them up... to the tune of $11.5M in 2021 if he retires after this year.

So you just eat the dead money once player X retires or signs elsewhere

 

[ndcc]

Hope the following helps:

“Dead money” is money guaranteed to a player. Since it’s guaranteed, the team still has to pay it even if they cut the player, so it still counts against the salary cap even though they’re not longer getting the player’s services.

Say you sign a player to a 3-year, $15 million contract. That’s a pretty simple calculation: $5 million per year, and the team can cut the player at any time and not have any dead money.

But the players push for things like signing bonuses, which are guaranteed. Same player: you sign him to a 3-year, $15 million contract, with $6 million of that total as the signing bonus. Salary cap rules allow you to pro-rate the signing bonus over the life of the contract, so if you cut him after year one, you’ll have $2 million in dead money for each year after you cut him.

Trades require the team to continue paying the contract as written, so dead money only becomes an issue if the new team cuts the player.

How exactly does dead cap money work in the NFL and what happens to that money if they cut or trade a player?

Answer (1 of 5): “Dead money” is money guaranteed to a player. Since it’s guaranteed, the team still has to pay it even if they cut the player, so it still counts against the salary cap even though they’re no longer getting the player’s services. Say you sign a player to a 3-year, $15 million co...

www.quora.com

 

[onanygivensunday]

So you just eat the dead money once player X retires or signs elsewhere

Yes. Some teams like the Saints include a year or two of "voidable years" at the end of a player's contract.

The benefit to the team is it keeps the current year cap hit as low as possible by spreading out the prorated signing bonus a year or two past when they likely won't re-sign the player. So a one-year contract becomes a two-year contract because of the voidable year.

Had Drew retired this year, the dead cap hit to the team's cap in 2020 would have been $21.3M. Because he re-signed (again), Mickey was able to push Drew's voidable years' cap hit a couple of more years into the future.

Eventually the Piper has to be paid... except in the fairy tale. lol

 

[Stalwart385]

Is the new CBA doing away with the voidable year that’s teams have been using?

Nope, I think refusing the new CBA would have actually blocked voidable years along with some other restrictions. As of now, voidable years appear to be a tool teams can use for the foreseeable future.

 

[black_floyd]

...ITAL LETTERS?

 

[Merl]

Well, what was in reality a one-year deal became a two-year deal with year two being the voidable year.

The same will happen when Drew hangs them up... to the tune of $11.5M in 2021 if he retires after this year.

Drews cap hit next year if he were to retire after this season will be $22.65M

 

[Merl]

Nope, I think refusing the new CBA would have actually blocked voidable years along with some other restrictions. As of now, voidable years appear to be a tool teams can use for the foreseeable future.

If they were to make voidable years illegal the GM's would just put a stupidly high roster bonus at the start of a league year that would force a new contract or release so the same effect would occur.

 

[Stalwart385]

If they were to make voidable years illegal the GM's would just put a stupidly high roster bonus at the start of a league year that would force a new contract or release so the same effect would occur.

Yeah I could see that. Spread a signing bonus over a four year contract but the fourth year is all roster bonus (minus the signing bonus cap figure). Same effect for the most part.

 

[onanygivensunday]

Drews cap hit next year if he were to retire after this season will be $22.65M

You're right. The number I quoted ($11.5M dead cap hit in 2022) was if he were to play in both 2020 and 2021.