Brady extension would save cap room?

[eom]

I've heard it mentioned a few times that a brady extension could save cap, and I was wondering how much would that really save.

you'd basically just be rollingt his year's salary into a signing bonus, right?
so, you save, say 4m on the salary end, but then you'd end up w/some new bonus amortization against the '09 cap.
would you really end up saving any '09 cap?

 

[TriplecHamp]

Re: brady extension saves cap?

I've heard it mentioned a few times that a brady extension could save cap, and I was wondering how much would that really save.

you'd basically just be rollingt his year's salary into a signing bonus, right?
so, you save, say 4m on the salary end, but then you'd end up w/some new bonus amortization against the '09 cap.
would you really end up saving any '09 cap?

Very Good Question, I would like for us to extend Brady, and Wilfork or Seymour before the season. Miguel can you help us out?

 

[eom]

Re: brady extension saves cap?

hahaha...those guys are a whole different case.

wilfork is already cheap, so you don't save cap on him --- you spend it.
extending brady could be a cap saving move, like delhomme's deal supposedly was, I'm just curious if that's really the case.

 

[pats1]

The most the Pats would be able to reduce Brady's salary by is $386,720 before they would start incurring Deion charges. If the Pats, say, reduced Brady's salary from 5,000,000 to 3,000,000 (a difference of $2,000,000) and converted that to a signing bonus, then there would be a net cap credit of $1,000,000, since there would be a $1,000,000 proration added (Brady has 2 years left on his contract). However, Brady's non-prorated amounts would be $6,006,720 ($3,000,000 + $3,000,000 roster bonus + $6,720 workout bonus), which is less than his signing bonus allocation of $7,620,000 ($6,620,000 + $1,000,000 new proration). The difference ($1,613,280) would then be charged to the 2009 cap (capped) and credited to the 2010 cap (uncapped). Therefore, in the end you'd have a net cap hit of [$2,000,000 (the salary reduction) - $1,000,000 (the new bonus allocation) - $1,613,280 (the Deion charge)], or $613,280.

Aren't uncapped years great? (although in this case, it's also the length of Brady's contract that is causing problems)

By the way, if the Pats were to reduce Brady's salary by $386,720, their net cap hit would be half of that, or $193,360.

EDIT: This calculation ignores some details and therefore is inaccurate; see posts below.

 

[37Harrison]

The most the Pats would be able to reduce Brady's salary by is $386,720 before they would start incurring Deion charges. If the Pats, say, reduced Brady's salary from 5,000,000 to 3,000,000 (a difference of $2,000,000) and converted that to a signing bonus, then there would be a net cap credit of $1,000,000, since there would be a $1,000,000 proration added (Brady has 2 years left on his contract). However, Brady's non-prorated amounts would be $6,006,720 ($3,000,000 + $3,000,000 roster bonus + $6,720 workout bonus), which is less than his signing bonus allocation of $7,620,000 ($6,620,000 + $1,000,000 new proration). The difference ($1,613,280) would then be charged to the 2009 cap (capped) and credited to the 2010 cap (uncapped). Therefore, in the end you'd have a net cap hit of [$2,000,000 (the salary reduction) - $1,000,000 (the new bonus allocation) - $1,613,280 (the Deion charge)], or $613,280.

Aren't uncapped years great? (although in this case, it's also the length of Brady's contract that is causing problems)

By the way, if the Pats were to reduce Brady's salary by $386,720, their net cap hit would be half of that, or $193,360.

:wha::idontgetit:

 

[pats1]

:wha::idontgetit:

In other words, there are rules that prevent this.

 

[JoeSixPat]

In other words, there are rules that prevent this.

Right - otherwise I think you'd see every team convert nearly all salary this year into next year's potential uncapped year.... though even that would be risky as it could be next year won't be capped (though I have a tough time seeing both sides coming to an agreement).

 

[ctpatsfan77]

The most the Pats would be able to reduce Brady's salary by is $386,720 before they would start incurring Deion charges. If the Pats, say, reduced Brady's salary from 5,000,000 to 3,000,000 (a difference of $2,000,000) and converted that to a signing bonus, then there would be a net cap credit of $1,000,000, since there would be a $1,000,000 proration added (Brady has 2 years left on his contract). However, Brady's non-prorated amounts would be $6,006,720 ($3,000,000 + $3,000,000 roster bonus + $6,720 workout bonus), which is less than his signing bonus allocation of $7,620,000 ($6,620,000 + $1,000,000 new proration). The difference ($1,613,280) would then be charged to the 2009 cap (capped) and credited to the 2010 cap (uncapped). Therefore, in the end you'd have a net cap hit of [$2,000,000 (the salary reduction) - $1,000,000 (the new bonus allocation) - $1,613,280 (the Deion charge)], or $613,280.

Aren't uncapped years great? (although in this case, it's also the length of Brady's contract that is causing problems)

By the way, if the Pats were to reduce Brady's salary by $386,720, their net cap hit would be half of that, or $193,360.

Not necessarily. . . . if there are fewer than three capped seasons, then it's based on the total figures for the first three seasons.

 

[pats1]

Not necessarily. . . . if there are fewer than three capped seasons, then it's based on the total figures for the first three seasons.

You're correct, I had forgotten an uncapped year could be considered if there were less than two years remaining on the deal. And actually, the $6,620,000 number Miguel has is made up of $2.9M of old signing bonus and $2.4M of old option bonus prorations, so the only prorated figures being considered are the current signing bonus ($1.32M/y) plus whatever is prorated from the salary reduction. But because of the two $3M roster bonuses (2009 and 2010) being added to the non-prorated number, the Deion charge probably won't come into effect at all.

Good catch.

 

[Patjew]

For some reason this thread title always reminds me of "I Can Has Cheezburger?"

 

[eom]

You're correct, I had forgotten an uncapped year could be considered if there were less than two years remaining on the deal. And actually, the $6,620,000 number Miguel has is made up of $2.9M of old signing bonus and $2.4M of old option bonus prorations, so the only prorated figures being considered are the current signing bonus ($1.32M/y) plus whatever is prorated from the salary reduction. But because of the two $3M roster bonuses (2009 and 2010) being added to the non-prorated number, the Deion charge probably won't come into effect at all.

Good catch.

so.....can we haz the cheezburger, or not?

 

[Miguel]

There is no Deion proration in 2009 because it is the last capped year.

I do not recall seeing any mention of the 30% rule in this thread.

If Brady's 2009 salary is $1,000,000 in an extension, the max his 2010 salary would be $1,300,000.

 

[ctpatsfan77]

There is no Deion proration in 2009 because it is the last capped year.

I do not recall seeing any mention of the 30% rule in this thread.

If Brady's 2009 salary is $1,000,000 in an extension, the max his 2010 salary would be $1,300,000.

OTOH, not that it would happen, but the Pats could theoretically give Brady $50M guaranteed if they desired, to make up for the salaries of $1M-$2M. . . .

 

[Miguel]

Some comparables -

Big Ben's deal is a 8 year, $102 million deal.
Kurt Warner's deal is a 2 year, $23 million deal.
Brady's current deal is a 6 year, $60 million deal.

Sure, a new Brady deal could save money in 2009. The better question is would it save money in 2010.