07-27-2011, 03:53 PM
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#10
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Practice Squad
Join Date: Dec 2005
Posts: 196
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Re: How are the Jets doing it ?
Quote:
Originally Posted by crowell33
How is it possible that Holmes has a 5 year contract with $24 million guaranteed, and a cap number of only $2.45 mil this season ? The $24 million can't be a future option bonus ( or else it wouldn't be guaranteed ). Doesn't the $24 million guarantee have to be spread over the 5 years of the contract for cap purposes ?
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No. It depends how it's structured. You can have a guaranteed roster bonus that would get converted to an option bonus and further spread across the life of the contract from the moment of exercise. you can have guaranteed salary in later years. You can have a non-guaranteed option bonus and an insurance policy that pays you the full amount of the bonus if it isn't exercised. The only way "guaranteed money" has to be spread over the life of the contract is if it is signing bonus.
As for how they're doing it - they have one of the best GMs in football.
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