Cash to Cap

[ztboiler]

Grigson's actions with contract structures certainly support this thus far, but it is nice to hear him verbalize the philosophy of Cash to Cap....meaning that he does not intend to borrow from tomorrow in order to keep a team together today.

 

We'll see if he is able to stick with this principle as his drafted talent continues to mature with a $25M QB in tow, but I don't have any doubt that it is possible.  If the Saints had employed this principle, there is a chance that they could have avoided some of the valleys that they have gone through after signing Brees to the big deal.

 

http://www.colts.com/news/article-1/Ryan-Grigson-Castonzo-Contract-Talks-Active-Hilton-Deal-Win-Win/4f10ea86-19f4-417d-9c3b-ba6ad7a28c6c

[csmopar]

Grigson's actions with contract structures certainly support this thus far, but it is nice to hear him verbalize the philosophy of Cash to Cap....meaning that he does not intend to borrow from tomorrow in order to keep a team together today.

We'll see if he is able to stick with this principle as his drafted talent continues to mature with a $25M QB in tow, but I don't have any doubt that it is possible. If the Saints had employed this principle, there is a chance that they could have avoided some of the valleys that they have gone through after signing Brees to the big deal.

http://www.colts.com/news/article-1/Ryan-Grigson-Castonzo-Contract-Talks-Active-Hilton-Deal-Win-Win/4f10ea86-19f4-417d-9c3b-ba6ad7a28c6c

He's been good with it so far. We'll see

[Dark Superman]

With the cap continuing to rise (as well as the alternative of the franchise tag) we should be able to keep everyone. Even if we have to franchise Luck for another season to get it done. We'll see.

[NewColtsFan]

With the cap continuing to rise (as well as the alternative of the franchise tag) we should be able to keep everyone. Even if we have to franchise Luck for another season to get it done. We'll see.

 

We won't ever have to franchise Luck....    he's not wired that way.

 

Next year,  I think he's set to make nearly $16 Mill.     When he gets his new deal next February/March,  look for his '16 salary to plummet to save the team room with the salary cap.     That's the win-win scenario for what both sides want.

 

The player gets his big new deal including huge guaranteed money,  and the salary cap relief gets built in for the team.    Everybody wins.

[wig]

We won't ever have to franchise Luck.... he's not wired that way.

Next year, I think he's set to make nearly $16 Mill. When he gets his new deal next February/March, look for his '16 salary to plummet to save the team room with the salary cap. That's the win-win scenario for what both sides want.

The player gets his big new deal including huge guaranteed money, and the salary cap relief gets built in for the team. Everybody wins.

This thread is about NOT borrowing for the future! You're suggesting just that.

[Narcosys]

We won't ever have to franchise Luck.... he's not wired that way.

Next year, I think he's set to make nearly $16 Mill. When he gets his new deal next February/March, look for his '16 salary to plummet to save the team room with the salary cap. That's the win-win scenario for what both sides want.

The player gets his big new deal including huge guaranteed money, and the salary cap relief gets built in for the team. Everybody wins.

$16M... smh

[NewColtsFan]

$16M... smh

 

That's in salary.     He'll get a very large signing bonus as well. 

 

Very, very large.

[NewColtsFan]

This thread is about NOT borrowing for the future! You're suggesting just that.

 

I appreciate that may be what it looks like,  but that's what I expect Luck's deal to be.

 

After roughly 3 years,  they'll re-do the deal and give Luck another large signing bonus and lower his cap hit.  Also,  they'll make much of his salary guaranteed.

 

That's the way super large deals have traditionally been done.

 

Perhaps we won't take that approach, I'm speculating here based on historical precedent of big contracts.     The Colts were able to structure Hilton's deal in a way that I thought was pretty advantageous to the Colts.    Maybe we can do the same deal with Luck.    I'm just not expecting that.

[ColtRider]

I appreciate that may be what it looks like,  but that's what I expect Luck's deal to be.

 

After roughly 3 years,  they'll re-do the deal and give Luck another large signing bonus and lower his cap hit.  Also,  they'll make much of his salary guaranteed.

 

That's the way super large deals have traditionally been done.

 

Perhaps we won't take that approach, I'm speculating here based on historical precedent of big contracts.     The Colts were able to structure Hilton's deal in a way that I thought was pretty advantageous to the Colts.    Maybe we can do the same deal with Luck.    I'm just not expecting that.

Exactly correct, NCF! This is the way I see it, as well. Even Grigson hinted to this very thing (read between the lines) here in the article link above ...

"we pay close attention to our budgets ... if you want to stay in success you can't have those tremendous holes in terms of your cash or your cap."

Individuals who have worked with budgeting corporations/companies/personal businesses/self-employment/ and for that matter, family budgets/check books, know as much. It really comes down to planning your monetary intake & time(s) outlay. It's not rocket-science as some seem to think or suggest.

[swankdizzle]

[Freenyfan102]

16 mil is good for the Colts team as a whole

[themacs@feathersnfins.net]

Not 16... A Little Bit Under 12(as Per Spottrac.Com

[swankdizzle]

That's in salary.     He'll get a very large signing bonus as well. 

 

Very, very large.

The 16M  ($16,155,000) number is the fifth year option for Luck as a 1st Round pick.  Luck is already signed for 2016.  After this year, the Colts will no doubt  re-sign him and possibly, as with Hilton, push some of the cap hit for his new contract to future years.  BTW, I still believe that Luck's total contract will be similar to Aaron Rodgers, not the 25M per year often quoted.  Luck will not want his contract to prevent the Colts from signing other players, such as Coby Fleener or Dwayne Allen.  He wants to win; he will be making a ton of money either way.

[NewColtsFan]

The 16M  ($16,155,000) number is the fifth year option for Luck as a 1st Round pick.  Luck is already signed for 2016.  After this year, the Colts will no doubt  re-sign him and possibly, as with Hilton, push some of the cap hit for his new contract to future years.  BTW, I still believe that Luck's total contract will be similar to Aaron Rodgers, not the 25M per year often quoted.  Luck will not want his contract to prevent the Colts from signing other players, such as Coby Fleener or Dwayne Allen.  He wants to win; he will be making a ton of money either way.

 

To the first part of your comments,  about Luck's current contract,  I'm aware of all that.

 

To the 2nd part of your contract,  about future contract,  you could be entirely right.   He may just want a number that puts him just past Aaron Rodgers and be satisfied with that.    I wouldn't be shocked.

 

But here's why I don't think that happens.....   all the top level salaries for QB's have been hovering around the 20-22 mill mark for a few years now.    That's because the salary cap in the last few years has been relatively flat.    It's been going up but in small numbers...

 

But, it's widely anticipated that in the next contract,  the cap numbers are going to go up by roughly 10 mill per year.   So, by the end of Luck's next contract,  the cap may be in the range of $200 Mill per year.     So, there's going to be great room for lots of salaries to go way up.    I think Luck will be under enormous pressure from the Players Union to get as much as he can because it will help all other players.     And I think that will strike a chord with Andrew.    He'll want to help as many players as he can without hurting the Colts.      That's why I think he goes for more than just a little above Aaron Rodgers.