How Do Contracts Work?

[Fx Stryker]

I don't know exactly know how contracts work so I was wondering if anyone knows how it works.

Where does this 28 million exist in Peyton contract?

His base salary is 7.4 million, has a signing bonus for 4 million, a misc. bonus of 5.6 million, and I guess that means a cap hit of 17 million. Minus the signing and misc bonus does that mean 18.4 million is just "expendable money?" I could be wrong about this.

Now here Andrew says,

According to ESPN NFL Business Analyst Andrew Brandt, it will cost the Colts $50.5 million to keep Peyton Manning and Andrew Luck on the roster in 2012.

Manning's option is $28 million in addition to a $7.4 million salary while the No. 1 overall pick will receive approximately $15.1 million in bonus plus salary in 2012. If the Colts are dead-set on selecting a QB with the first pick, as owner Jim Irsay suggested, the only move that makes sense is declining Manning's option. Cleaning house from top to bottom, Manning's contract would be a salary-cap millstone around the franchise's neck while trying to improve the talent around Luck or Robert Griffin III.

Now based on Cam Newton's contract, number one draft pick in the 2011 draft, he made $375 thousand in base salary and $3.6295 million in a signing bonus. That gave him a $4.0045 million cap hit against the Panthers.

So based on this combined Peyton and the number one draft choice will be a $21 million cap hit against the Colts. I don't know where Andrew Brandt got $50.5 million total. By what Andrew says it would be around a $32 million cap hit.

Also what is the total the Colts are aloud on the Cap hit?

sources:

http://www.spotrac.com/nfl/indianapolis-colts/peyton-manning/

https://twitter.com/#!/adbrandt/status/160403744616493056

http://rotoworld.com/headlines/nfl/226744/manning-luck-combo-would-cost-colts-$505m

http://www.spotrac.com/nfl/carolina-panthers/cam-newton/

[OldManP]

I don't know exactly know how contracts work so I was wondering if anyone knows how it works.

Where does this 28 million exist in Peyton contract?

His base salary is 7.4 million, has a signing bonus for 4 million, a misc. bonus of 5.6 million, and I guess that means a cap hit of 17 million. Minus the signing and misc bonus does that mean 18.4 million is just "expendable money?" I could be wrong about this.

Now here Andrew says,

Now based on Cam Newton's contract, number one draft pick in the 2011 draft, he made $375 thousand in base salary and $3.6295 million in a signing bonus. That gave him a $4.0045 million cap hit against the Panthers.

So based on this combined Peyton and the number one draft choice will be a $21 million cap hit against the Colts. I don't know where Andrew Brandt got $50.5 million total. By what Andrew says it would be around a $32 million cap hit.

Also what is the total the Colts are aloud on the Cap hit?

sources:

http://www.spotrac.c...peyton-manning/

https://twitter.com/...403744616493056

http://rotoworld.com...ost-colts-$505m

http://www.spotrac.c...ers/cam-newton/

I don't understand the salary cap, but regardless of cap hit, wouldn't it cost the Colts $50 million to have both Manning and Luck?

[bavanlan]

Bonuses, while prorated for salary-cap purposes, are paid out of pocket, in full, at once when earned. Manning gets a $28,000,000.00 check on March 8.

[BlueShoe]

I don't know exactly know how contracts work so I was wondering if anyone knows how it works.

Where does this 28 million exist in Peyton contract?

His base salary is 7.4 million, has a signing bonus for 4 million, a misc. bonus of 5.6 million, and I guess that means a cap hit of 17 million. Minus the signing and misc bonus does that mean 18.4 million is just "expendable money?" I could be wrong about this.

Now here Andrew says,

Now based on Cam Newton's contract, number one draft pick in the 2011 draft, he made $375 thousand in base salary and $3.6295 million in a signing bonus. That gave him a $4.0045 million cap hit against the Panthers.

So based on this combined Peyton and the number one draft choice will be a $21 million cap hit against the Colts. I don't know where Andrew Brandt got $50.5 million total. By what Andrew says it would be around a $32 million cap hit.

Also what is the total the Colts are aloud on the Cap hit?

sources:

http://www.spotrac.c...peyton-manning/

https://twitter.com/...403744616493056

http://rotoworld.com...ost-colts-$505m

http://www.spotrac.c...ers/cam-newton/

Contracts and cap structures are very simple once you understand all of the rules.

If I signed you to a 5 year 50 million dollar deal that included a 10 million dollar signing bonus and a 5 million dollar roster bonus due in year two then this is an example of how it could play out:

I would give you 10 million at the time you signed.

first year base 2 mill

second year base 3 mil plus 5 mil roster bonus

third year base 8 mil

fourth year base 10 mil

fifth year 12 mil

The cap hit would be:

year 1: 4 mil

year 2: 10 mil

year 3: 10 mil

year 4: 12 mil

year 5: 14 mil

Really simple stuff.

As an owner I could cut you after year one and it would only cost me 12 million.

[21isSuperman]

Bonuses, while prorated for salary-cap purposes, are paid out of pocket, in full, at once when earned. Manning gets a $28,000,000.00 check on March 8.

Wow