[Garofalo] Maye getting paid quickly

[ctpatsfan77]

most every team spends 90% of the cap every season. every team must spend 100% of their cap over a 3 year span.

WHat Kraft did for Maye, paying him $23m in 14 days, is what kraft did for Brady over his last 5 or 6 deals. Brady was getting very serious cash in hand upfront. with zero impact on the cap. that is a Yee staple, cash in hand upfront. money makes more money.

Maye's sign bonus is evenly split over all 4 seasons to the exact dollar.

I simply cannot fathom your infatuation with the cap, given your obvious minimal understanding of it, opposed top cash spending? cash spent is everything in business. football is business. the cap is a very loose accounting of cash spent. very, very loose. non guaranteed contracts. rising cap every year. amortized bonuses that can spread over 5 years.

1. The cash spending requirement is 90% over a three-year period, not 100%.

2. Cash spending is a floor that simply requires money be spent, but the cap is a hard limit that often forces team's hands.

 

[ahmed]

@KCSVEN is right. Marginal tax rates refer to the rate you pay on the next dollar you earn.

Both Maye and I will pay 10% on the first $11,600 of taxable income we have.

And as he notes, the top tax bracket begins below his weekly salary, so he's going to pay the top bracket rate on the bonus whether he gets it in one lump sum or over two years.

That's not what he said or how I read it. He will pay marginal rate on it post the 11k. The bonus does not revert the rate to zero but continues which is what margin rate it.

He will end up paying 50% on most of his income this year or whatever the highest marginal rate is.

 

[Wozzy]

Looking back at free agency it appeared that the extra space gave teams with less cap space the ability to keep their own players. That made the market smaller for the cap rich Pats.

Maybe but I also think they prioritized their own good free agents, I don't think they were seriously in on Calvin Ridley or others once the price tag became unwieldy. They were wise to walk away, Ridley isn't worth 4 years at 92M.

The cap rose the most this offseason than it has in history, it will not rise like this every year... and teams like the Dolphins and Bills still felt the sting.

 

[Wozzy]

most every team spends 90% of the cap every season. every team must spend 100% of their cap over a 3 year span.

WHat Kraft did for Maye, paying him $23m in 14 days, is what kraft did for Brady over his last 5 or 6 deals. Brady was getting very serious cash in hand upfront. with zero impact on the cap. that is a Yee staple, cash in hand upfront. money makes more money.

Maye's sign bonus is evenly split over all 4 seasons to the exact dollar.

I simply cannot fathom your infatuation with the cap, given your obvious minimal understanding of it, opposed top cash spending? cash spent is everything in business. football is business. the cap is a very loose accounting of cash spent. very, very loose. non guaranteed contracts. rising cap every year. amortized bonuses that can spread over 5 years.

You're the same guy I had to explain what "dead cap" was after Tom left, also the same guy who insisted the Patriots could afford to sign Chandler Jones, Jamie Collins and Malcolm Butler in the same offseason... so I won't come to you for cap advice. I'll defer to someone much smarter than you.

"Cash spending isn't really that relevant. It's cap spending," Belichick said on WEEI's Greg Hill Show. "So teams that spend a lot of cash one year probably don't spend a lot of cash in the next year, because you just can't sustain that. So we've had high years, we've had low years, but our cap spending has always been high. And that's the most competitive position you can be in. So that's really -- the cash spending, there's no cash cap. There's a salary cap and we spend to the salary cap, that's what's important."

When pressed on the Patriots' philosophy of not going "all in" with cash spending, Belichick said such an approach is not sustainable.

"Temporarily you can. You can't sustain it, no. I mean you can't sustain the 20 years of success that we sustained by overspending every year without having to eventually pay those bills and play with a lesser team," he said. "So I think if you look at the teams that have done that, that's kind of where some of them ended up. Jacksonville back in '14, the Rams are going through it, Tampa's going through it now. Not saying there's anything right or wrong with it, it's just a different way of doing things, and there's a result for doing that."

www.cbsnews.com/boston/news/bill-belichick-salary-cap-spending-more-important-than-cash-spending/

 

[Wozzy]

1. The cash spending requirement is 90% over a three-year period, not 100%.

2. Cash spending is a floor that simply requires money be spent, but the cap is a hard limit that often forces team's hands.

He doesn't believe the salary cap exists... he also believe the Earth is flat and rides on the back of a giant turtle.

 

[rkarp1]

1. The cash spending requirement is 90% over a three-year period, not 100%.

2. Cash spending is a floor that simply requires money be spent, but the cap is a hard limit that often forces team's hands.

the cap is a hard limit that often forces teams hands. I agree to a degree. "hard limit" is subjective given that teams can cut players, extend players and reduce players contracts. the "hard limit" is very loose. creating cap space as needed is a relatively easy fix for every team.

I also agree teams do not have unlimited funds. but the limits are much more so cash than cap.
the Maye deal made us all very well aware, that while contracts in cap speak are spread over years, contracts in cash speak are not always.
Maye is getting what, $36m ish over 4 years. in cap speak, thats an AAV of $9m per. chump change. but in real cash, the team needs to pony up $23m in 2 weeks.

 

[rkarp1]

He doesn't believe the salary cap exists... he also believe the Earth is flat and rides on the back of a giant turtle.

why do you keep lying?
of course the cap exists. I have said that to you well over 1000 times now.
but it is hardly relevant. it is an accounting tool. it is easily worked around. it is easily moved around.
until you can speak to the subject in your own words, you should and listen and earn

 

[Wozzy]

clownwhy do you keep lying?
of course the cap exists. I have said that to you well over 1000 times now.
but it is hardly relevant. it is an accounting tool. it is easily worked around. it is easily moved around.
until you can speak to the subject in your own words, you should and listen and earn

Anything that forces teams into letting good/great players walk out the door is relevant and not nothing.

If it was easy to “workaround” the Dolphins wouldn’t have just let their best defensive lineman walk out the door because they’re paying their 2nd largest cap hit on the team to a CB no longer on the roster and knowing they still have to sign Tua.

There’s a hard cap, this isn’t baseball.

 

[1960Pats]

Maybe but I also think they prioritized their own good free agents, I don't think they were seriously in on Calvin Ridley or others once the price tag became unwieldy. They were wise to walk away, Ridley isn't worth 4 years at 92M.

The cap rose the most this offseason than it has in history, it will not rise like this every year... and teams like the Dolphins and Bills still felt the sting.

I like that they signed what they had. They should know who's worth keeping.

 

[XLIX]

He'll take a bigger tax hit with the lump sum, won't he?

The actual answer is that there's no way to know because we don't know what the tax rates are going to be 2 years, 3 years, 4 years from now. However, the difference - if there is one at all - will be no more than a couple percentage points.

Having said that, if the amount of money one receives is fixed then you definitely want to get as much of it as soon as possible. The present value of any amount of money is quite a bit higher than the future value of the same amount.

 

[Gumby]

5% tax rate in North Carolina. How much does it go up if the income is made in Mass?

This was in my line of thinking: That if he still has NC residency until TC officially starts or gets a MA house-apartment; then the team is maybe doing him a solid and he is saving X % on taxes (X= MA income tax - NC tax)

He'll take a bigger tax hit with the lump sum, won't he?

As others said; when you start talking 7-digit numbers; you are already at the max tax rate whether 1 mil or 20 mil.

 

[PP2]

More evidence that it wasn't entirely "Kraft is cheap."

Kraft will forever be cheap to me because he wrecked his reputation by going to the Orchid Spa so he could shell out just $20 for a tug job rather than stay in his hotel room and get serviced by a $1k escort.

 

[TomPatriot]

3%, not a bad take if that’s the amount:

It’s more work than we think, though.

 

[BTTA]

It’s more work than we think, though.

And the stakes are very high on the details in the contract language. Screw up once, the word gets out, you are pretty much done for at that level.

 

[cmasspatsfan]

The actual answer is that there's no way to know because we don't know what the tax rates are going to be 2 years, 3 years, 4 years from now. However, the difference - if there is one at all - will be no more than a couple percentage points.

Having said that, if the amount of money one receives is fixed then you definitely want to get as much of it as soon as possible. The present value of any amount of money is quite a bit higher than the future value of the same amount.

We don't know, you'd have to be an accountant to have a good idea, but I always figure on these big contracts that they'll probably end up with half after agent fees and taxes, I might be off a little one way or the other but it sure isn't much more than that if I'm off.

How Much Money Do Professional Athletes Really Make?

Salaries in sports contracts don't tell the whole story on how much athletes earn. See how much professional athletes at every level really take home.

www.fool.com

 

[vicspats]

Nice payday for someone who never stepped on an NFL field.

Rookie salaries are starting to creep up. I know cap related but still they are getting large purely for potential.

Wonder if it’s old regime vs new regime ?

 

[vicspats]

the Patriot way never won anything with out Tom Brady

Or that other guy ..

 

[vicspats]

Kraft will forever be cheap to me because he wrecked his reputation by going to the Orchid Spa so he could shell out just $20 for a tug job rather than stay in his hotel room and get serviced by a $1k escort.

Now that is math I think everyone can understand !!

 

[Real fan 02]

Drake is buying real estate in New England and more than likely brings his family with and needs housing for them.

It makes sense.

He’s the franchise

With those zaney brothers of his the Drake residence will be like animal house.

 

[ahmed]

Kraft will forever be cheap to me because he wrecked his reputation by going to the Orchid Spa so he could shell out just $20 for a tug job rather than stay in his hotel room and get serviced by a $1k escort.

That is the part that never made sense in the entire deal. Why there? Has to be something other than money right? I mean if he was that cheap he would fly commercial for example.

Got to be something else.