The Cap

[UndecidedFrog]

Most of my contract information comes from here: http://www.spotrac.com/nfl/indianapolis-colts/dwight-freeney/

So far I have calculated the projected Colts team cap for 2012 from the above data source to be:

46 players (excludes Collins, whom I removed, but not his 2012 cap hit, which I kept)

that are responsible for $88.59MM

Add in Draft pick #1 at $4.2MM

and QB#3 at league minimum $0.4MM

1) We have 48 players, with a total of $93.18MM to address our own FAs, draftees and outside FAs.

Of the 48 players above, 15 will be without contract in 2012. They are:

Anderson, Brayton, Diem, Foster, Garcon, Gonzales, Lacey, Mathis, Muir, Richard, Saturday, Tamme, Toudouze, Wayne, Wheeler.

2) In 2011, these 15 players totaled up to $34.94MM in cap space.

3) The 2012 total team salary cap is projected to be $121.2MM (1% increase from the 2011 total team salary cap).

4) Taking the figure from item1 + figure from item 2 (rough idea, as if we can get these 15 players back for the same cap hit as last year,lol) = $128.12MM, or over the 2012 projected total team cap by $6.92MM.

Feel free to go to the source above and play around with what you think we can do to re-sign, restructure, cut these players to get below the cap again, if you particularly relish headaches.

Caution: Don't forget to accelerate the pro-rated portions of bonuses forward as cap hits, if you want to cut a player before his contract expires.

Happy hunting.

[WSO]

Question here. . .

hypothetically the Colts can cut Manning, re-sign Mathis, Wayne, Garcon(even with larger contract) and some other low tier F/A's and drafted players (outside the #1 pick) and still be under the cap? I know not all the F/As are going to be re-signed but some of the more important ones can be right ? Assuming Mannings 6m savings helps here. .

[UndecidedFrog]

Question here. . .

hypothetically the Colts can cut Manning, re-sign Mathis, Wayne, Garcon(even with larger contract) and some other low tier F/A's and drafted players (outside the #1 pick) and still be under the cap? I know not all the F/As are going to be re-signed but some of the more important ones can be right ? Assuming Mannings 6m savings helps here. .

If you cut PM, you will save about $6.6MM theoretical cap space in 2012 ($17MM projected for PM - $10.4MM accelerated portions of unamortized bonuses), and more in 2013, 2014 and 2015.

But focusing on 2012, without knowing what Mathis, Garcon et al. will accept (or what you think they should accept), I really don't know how to proceed with this analysis. Why don't you look up their current contracts at the source I cited, and tell me what will be the going-forward contracts for each of them?

[GAColtfan]

Question here. . .

hypothetically the Colts can cut Manning, re-sign Mathis, Wayne, Garcon(even with larger contract) and some other low tier F/A's and drafted players (outside the #1 pick) and still be under the cap? I know not all the F/As are going to be re-signed but some of the more important ones can be right ? Assuming Mannings 6m savings helps here. .

And why would you keep any of these guys if you are going with rookie QB. You won't be playing for the playoffs or the SB next year... maybe evern the next couple of years. Signing all these guys may be the difference between 4/5 wins and 6/7 wins. Big deal. If you are going to go young, go young- there are enough vets under contract already to have a few around.

Besides, why would any of them want to return knowing the team is in rebuilding mode? Vets in their last few years in the league that still have something to offer, seems like they would want to be on a team with playoff and SB chances.

BTW, it is interesting that no one seems to be discussing that, even if Peyton is healthy, played last year, etc.... we still we be in a world of hurt salary cap wise. Thought Polian was supposed to be the master of the salary cap?? Seems odd after years of being able to manage cap with veteran players, that we run into this year with such a problem on our hands.

[betheafan41]

I dont know to much about the NFL cap rules, as i try not to get to invovled with it, but what if a team went over the cap limit? does the nfl use a luxury tax system like how major league baseball does? i know baseball doesnt have a salary cap but they have a limit which i believe is at 189 million this year, and if a team is over it they gotta pay a luxury tax which gets spread to the lower payroll teams, so i was just curious if that comes into effect with the NFL if they go over the cap? because theres a couple NFL teams i know of right now who are in cap trouble and still have significant players they need to re-sign like

New Orleans - Drew Brees, Nicks, Tracey Porter

Houston - Arian Foster, Mario Williams

Indy - key FA's Wayne,Garcon, Saturday, Tamme, Mathis and the other guys could be had prob at a cheap cost, and i highly doubt they bring back gonzalez since he cant stay healthy.

again sorry, not to familiar with the NFL Cap Rules.

[UndecidedFrog]

I dont know to much about the NFL cap rules, as i try not to get to invovled with it, but what if a team went over the cap limit? does the nfl use a luxury tax system like how major league baseball does? i know baseball doesnt have a salary cap but they have a limit which i believe is at 189 million this year, and if a team is over it they gotta pay a luxury tax which gets spread to the lower payroll teams, so i was just curious if that comes into effect with the NFL if they go over the cap? because theres a couple NFL teams i know of right now who are in cap trouble and still have significant players they need to re-sign like

New Orleans - Drew Brees, Nicks, Tracey Porter

Houston - Arian Foster, Mario Williams

Indy - key FA's Wayne,Garcon, Saturday, Tamme, Mathis and the other guys could be had prob at a cheap cost, and i highly doubt they bring back gonzalez since he cant stay healthy.

again sorry, not to familiar with the NFL Cap Rules.

Here is a good source for NFL salary cap information and rules: http://www.askthecommish.com/salarycap/faq.asp

The short answer is simply that NO team CAN go over the Salary Cap. Note that every contract must go through the NFL League Office before the deal can be made official. Presumably, one of the things the league must do at this time is determine whether or not the contract would violate the NFL's Salary Cap. If the deal does violate the cap, then the NFL will reject it.

If a team releases or trades a player and the signing bonus acceleration puts a team over the Salary Cap, the team will have seven days to conform with the Salary Cap. However, they may not sign any players until there is room to do so under the Salary Cap.

There have been instances in which a team has managed to sneak a cap evading contract by the league. Upon further review, the violations were caught by the league and the respective teams were penalized. Penalties include fines and/or forfeiture of draft picks. In recent history both the Pittsburgh Steelers and San Francisco 49ers have been penalized draft picks, while the 49ers' front office personnel (Carmen Policy and Dwight Clark) were also fined.

The teams you cite as having cap trouble will need to resolve them by either releasing, renegotiating, trading, etc.

[WSO]

And why would you keep any of these guys if you are going with rookie QB. You won't be playing for the playoffs or the SB next year... maybe evern the next couple of years. Signing all these guys may be the difference between 4/5 wins and 6/7 wins. Big deal. If you are going to go young, go young- there are enough vets under contract already to have a few around.

Besides, why would any of them want to return knowing the team is in rebuilding mode? Vets in their last few years in the league that still have something to offer, seems like they would want to be on a team with playoff and SB chances.

BTW, it is interesting that no one seems to be discussing that, even if Peyton is healthy, played last year, etc.... we still we be in a world of hurt salary cap wise. Thought Polian was supposed to be the master of the salary cap?? Seems odd after years of being able to manage cap with veteran players, that we run into this year with such a problem on our hands.

And you know this how? Is there a golden rule in football where rookie QB's cannot make the playoffs or immediately come in and have success? Your post is chock full of assumptions, suggesting that we cannot win with a rookie or a young quarterback. This team may be rebuilding but they are no cleaveland browns. There is still quite a bit of talent on the team (Bethea, Freeney, Angerer, Collie, Clark, Addai, Brown, Powers) and throw in some of the potential re-signings or even get some players from the F/A market and it will still be a good team.

If Peyton is healthy last year and this team wins 9, 10, 11 or 12+ games, the Colts can afford to lose more of these players to free agency. We have all seen Manning make no-name WR's look good. If Manning is gone, the Colts should surround the rookie QB whomever it is, Luck or RG3, with talent on both sides of the ball to help him out. Just like the Bengals, Jets, and Ravens did with their rookie QBs.

[luke314]

I think the colts should cut a few veterans so they can go after some of the big name free agents. If we cannot sign Wayne to a reasonable contract, what about signing Hinds Ward?

[chrisfarley]

Very good post.... in theory, that is all correct. we need to know what's happening w/Manning, Wayne, and the rest of the F.A. --- it really suxx to not know right now...........

[chrisfarley]

And why would you keep any of these guys if you are going with rookie QB. You won't be playing for the playoffs or the SB next year... maybe evern the next couple of years. Signing all these guys may be the difference between 4/5 wins and 6/7 wins. Big deal. If you are going to go young, go young- there are enough vets under contract already to have a few around.

Besides, why would any of them want to return knowing the team is in rebuilding mode? Vets in their last few years in the league that still have something to offer, seems like they would want to be on a team with playoff and SB chances.

BTW, it is interesting that no one seems to be discussing that, even if Peyton is healthy, played last year, etc.... we still we be in a world of hurt salary cap wise. Thought Polian was supposed to be the master of the salary cap?? Seems odd after years of being able to manage cap with veteran players, that we run into this year with such a problem on our hands.

Look what Cincy did, Andy took them very far. Why is it a pipe-dream to think that Luck couldn't take us to the playoffs with the right personnel moves? I think it CAN happen. He's that good.

[Coltscrew]

I have a question for you frog. The 2012 league year starts March 13th; Manning's option bonus is due March 8th (I think they actually have until the 10th to pay). If both sides agree to pushing this date back (both sides have said this could be done), couldnt they techinically restructure Mannings contract without having to cut him based on Manning then being in the second year of his contract? I figure your the guy to ask about these sort of things.

[UndecidedFrog]

I have a question for you frog. The 2012 league year starts March 13th; Manning's option bonus is due March 8th (I think they actually have until the 10th to pay). If both sides agree to pushing this date back (both sides have said this could be done), couldnt they techinically restructure Mannings contract without having to cut him based on Manning then being in the second year of his contract? I figure your the guy to ask about these sort of things.

From my understanding:

1) If both the Colts and PM agree to push back the option bonus exercise date, it is possible to do that, as long as the NFL and NFLPA agree as well. However, I do not see this as being a probable outcome given PM's leverage in the situation is to need to know if the team will pay the option sooner rather than later. IOW, it does not benefit PM to push the exercise date back. In fact, I see it that PM, if anything, would want to push it forward to maximize his potential career options should the Colts decline.

2) If they attempt to technically restructure the contract, I think they cannot restructure the parts of the contract which have already triggered pro-ration per the cap calculations. This would definitely be the signing bonus paid in 2011 of $20MM, which has been pro-rated into 5 equal portions of $4MM per year.

This would also include the option bonus, if paid, of $28MM, which has been pro-rated into 5 equal portions of $5.6MM per year.

If they try to rework these, I think the NFL will need to be convinced why this reconstructed agreement would not constitute a technical release + re-sign, thereby accelerating the unamortized prorated portions to hit the cap.

3) If I am correct in point 2 above, the only thing left to restructure is the salary amount, which currently are $7.4, $8.4, $9.4, $10.4 for 2012, 2013, 2014, 2015, respectively. Even in this, there are constraints, such as the vet minimum, and any additional input from the NFLPA who may object to any significant reduction (as they represent the elite QB cohort that are also seeking re-signings). This concern from the NFLPA will also be present in any new contract that the Colts may agree with PM.

4) If in the attempt of restructuring these salary amounts, you find that it does not provide adequate room to get to where you need to be, the path would then be best to cut and re-sign PM to a mutually agreeable new contract. You will see that this cut/re-sign scenario works best only if the option bonus has not been paid.

5) Cutting PM before paying the option bonus, will result in a $10.4MM hit to the cap, due to acceleration of the unamortized bonus prorations. I think your questions were an attempt to see if there is a tortuous way around this. Short and simple answer is that it would be difficult, and you would probably need to convince the NFL that what has been done does not trigger a cut/re-sign situation.

6) I do not have all the contract details between PM and the Colts. There could be additional language that may provide something different than what I have described above.

[braveheartcolt]

And why would you keep any of these guys if you are going with rookie QB. You won't be playing for the playoffs or the SB next year... maybe evern the next couple of years. Signing all these guys may be the difference between 4/5 wins and 6/7 wins. Big deal. If you are going to go young, go young- there are enough vets under contract already to have a few around.

Besides, why would any of them want to return knowing the team is in rebuilding mode? Vets in their last few years in the league that still have something to offer, seems like they would want to be on a team with playoff and SB chances.

BTW, it is interesting that no one seems to be discussing that, even if Peyton is healthy, played last year, etc.... we still we be in a world of hurt salary cap wise. Thought Polian was supposed to be the master of the salary cap?? Seems odd after years of being able to manage cap with veteran players, that we run into this year with such a problem on our hands.

No rookie has ever got anywhere near the play-offs.......oh, wait a minute......and maybe some vets see Luck as a major talent.....

[Wyld1]

You are joking right Braveheart???? Right off the top of my head Sanchez and I believe Flacco did just that?

[WSO]

You are joking right Braveheart???? Right off the top of my head Sanchez and I believe Flacco did just that?

I think he was being sarcastic

[Wyld1]

I think he was being sarcastic

Ok good! That is what I had thought...lol! No offense intended Sir William Walllace!

[UndecidedFrog]

Revised cap

Most of my contract information comes from here: http://www.spotrac.c...dwight-freeney/

So far I have calculated the projected Colts team cap for 2012 from the above data source to be:

31 players (excludes Collins, whom I removed, but not his 2012 cap hit, which I kept)

that are responsible for $88.02MM

Add in Draft pick #1 at $4.2MM

and QB#3 at league minimum $0.4MM

Add in Draft pick #34 at $1.4MM

Add in Draft pick #65 at $0.9MM

1) And we have 35 players, with a total of $94.12MM to the cap

2) We have 15 FAs that do not have contracts in 2012, and therefore not included in the 35 players above. They are:

Anderson, Brayton, Diem, Foster, Garcon, Gonzales, Lacey, Mathis, Muir, Richard, Saturday, Tamme, Toudouze, Wayne, Wheeler.

3) In 2011, these 15 players totaled up to $34.94MM in cap space.

4) The 2012 total team salary cap is projected to be $121.2MM (1% increase from the 2011 total team salary cap).

5) Taking the figure from item1 + figure from item 3 (rough idea, as we will not get these 15 players back for the same cap hit as last year) = $129.06MM, or over the 2012 projected total team cap by $7.86MM.

Feel free to go to the source above and play around with what you think we can do to re-sign, restructure, cut, let walk, players to get below the cap again, if you particularly relish headaches.

Caution: Don't forget to accelerate the pro-rated portions of bonuses forward as cap hits, if you want to cut a player before his contract expires.

If you want me to do your mock cap for your mock roster, I will need from you:: who you want to re-sign for how long, and how much (upfront bonus, salaries), who you want to cut, who you will let walk, who you will extend, or restructure for how long, and how much.

Happy hunting.

[coltsblue1844]

Of the 15 free agents listed above, i think that we will let: Wayne, Toudouze, Richard, Muir, Foster and Brayton walk... Diem will retire... Gonzales signs for the minimum... Saturday comes back on a cheaper deal than the one he just finished, due to age (IF Peyton is our QB next year...if not, i bet he retires).

Anderson and Wheeler signed to cheap contracts...

Garcon, Tamme and Mathis resigned for appropriate market value deals.

I also expect Freeney to be extended so that his cap # goes way down from the $19 million owed, and I also expect Peyton Manning to work out a new contract to stay as a Colt and to lower his cap # for future years beyond 2012 (IF we cannot move the roster bonus date back and have to release and resign)...if we CAN move it back, then i also expect a deal to be reached that lowers his 2012 cap # as well.

The above SHOULD bring us BELOW the projected cap #, with enough wiggle room to fill out the roster as needed. While i'm not sure what the actual # would be, i am confident that it would be at or below the cap # once the year rolls around

[jwilli69]

post did not come out like I hoped so I deleted it

[UndecidedFrog]

Of the 15 free agents listed above, i think that we will let: Wayne, Toudouze, Richard, Muir, Foster and Brayton walk... Diem will retire... Gonzales signs for the minimum... Saturday comes back on a cheaper deal than the one he just finished, due to age (IF Peyton is our QB next year...if not, i bet he retires).

Anderson and Wheeler signed to cheap contracts...

Garcon, Tamme and Mathis resigned for appropriate market value deals.

I also expect Freeney to be extended so that his cap # goes way down from the $19 million owed, and I also expect Peyton Manning to work out a new contract to stay as a Colt and to lower his cap # for future years beyond 2012 (IF we cannot move the roster bonus date back and have to release and resign)...if we CAN move it back, then i also expect a deal to be reached that lowers his 2012 cap # as well.

The above SHOULD bring us BELOW the projected cap #, with enough wiggle room to fill out the roster as needed. While i'm not sure what the actual # would be, i am confident that it would be at or below the cap # once the year rolls around

It all depends on what you mean by "cheap" and "appropriate".

Ultimately you will need to identify numbers to see how they stack up against the market.

Otherwise it is not educated guessing and plenty of hoping.

[oldunclemark]

Most of my contract information comes from here: http://www.spotrac.c...dwight-freeney/

So far I have calculated the projected Colts team cap for 2012 from the above data source to be:

46 players (excludes Collins, whom I removed, but not his 2012 cap hit, which I kept)

that are responsible for $88.59MM

Add in Draft pick #1 at $4.2MM

and QB#3 at league minimum $0.4MM

1) We have 48 players, with a total of $93.18MM to address our own FAs, draftees and outside FAs.

Of the 48 players above, 15 will be without contract in 2012. They are:

Anderson, Brayton, Diem, Foster, Garcon, Gonzales, Lacey, Mathis, Muir, Richard, Saturday, Tamme, Toudouze, Wayne, Wheeler.

2) In 2011, these 15 players totaled up to $34.94MM in cap space.

3) The 2012 total team salary cap is projected to be $121.2MM (1% increase from the 2011 total team salary cap).

4) Taking the figure from item1 + figure from item 2 (rough idea, as if we can get these 15 players back for the same cap hit as last year,lol) = $128.12MM, or over the 2012 projected total team cap by $6.92MM.

Feel free to go to the source above and play around with what you think we can do to re-sign, restructure, cut these players to get below the cap again, if you particularly relish headaches.

Caution: Don't forget to accelerate the pro-rated portions of bonuses forward as cap hits, if you want to cut a player before his contract expires.

Happy hunting.

another question, Mr Capster....Joe Cap.......Cap Anson...

under the just signed new basic agreement..what does the cap increase to in 2013 and beyond???

[UndecidedFrog]

another question, Mr Capster....Joe Cap.......Cap Anson...

under the just signed new basic agreement..what does the cap increase to in 2013 and beyond???

That would depend on the TV revenues that are projected.

According to some analysts' projection, with which I am in agreement, the projected team caps look like this:

2011: $120MM

2012: $121.2MM (+1%)

2013: $122.4MM (+1%)

2014: $134.7MM (+10%)

2015: $137.3MM (+2%)

The increase in TV revenue bumps the cap in 2014, not 2013.

[oldunclemark]

That would depend on the TV revenues that are projected.

According to some analysts' projection, with which I am in agreement, the projected team caps look like this:

2011: $120MM

2012: $121.2MM (+1%)

2013: $122.4MM (+1%)

2014: $134.7MM (+10%)

2015: $137.3MM (+2%)

The increase in TV revenue bumps the cap in 2014, not 2013.

so, if you felt you had to...you would restructure Dwight Freeney's deal ('cause you love him) to a contact which paid him peanuts in 2012 and 2013

..and deferred any larger swag bounty until 2014...when the cap was $12 mil larger..?

[UndecidedFrog]

so, if you felt you had to...you would restructure Dwight Freeney's deal ('cause you love him) to a contact which paid him peanuts in 2012 and 2013

..and deferred any larger swag bounty until 2014...when the cap was $12 mil larger..?

No, if I wanted Freeney to stay with the Colts, I would structure an agreement with him that would be more attractive over the longer term than what he would get from other teams. His agent, being savvy, will want more of that total compensation upfront (guaranteed bonus$) and in the near term, rather than the typical BP balloon. Keep in mind, this attempted restructure will be asking him to forego his 2012 balloon of $14.035MM.

If I really wanted to keep Freeney, I would swallow the near term cap hit an acceptable (what Freeney will accept) extension would provide.

[oldunclemark]

No, if I wanted Freeney to stay with the Colts, I would structure an agreement with him that would be more attractive over the longer term than what he would get from other teams. His agent, being savvy, will want more of that total compensation upfront (guaranteed bonus$) and in the near term, rather than the typical BP balloon. Keep in mind, this attempted restructure will be asking him to forego his 2012 balloon of $14.035MM.

If I really wanted to keep Freeney, I would swallow the near term cap hit an acceptable (what Freeney will accept) extension would provide.

He's in his 30s...3 years is long term......He's retired after that

,..and as you've said before..we cant afford his cap hit...$19 mil in 2012...

.,.why would you not guarantee the balloon payment but guranatee it in 2014 when we can handle it..

You dont have to convince him to stay..He's under contract...

If the money's guaranteed...(as i assume a bonus is) why would you want to blow up your cap now..and why would he care (2012 or 2014) when he his 8-figure truck-full-of-cash ship comes in...?

[Jaric]

so, if you felt you had to...you would restructure Dwight Freeney's deal ('cause you love him) to a contact which paid him peanuts in 2012 and 2013

..and deferred any larger swag bounty until 2014...when the cap was $12 mil larger..?

That would be the last thing we want to do with an aging speed rusher.

[oldunclemark]

That would be the last thing we want to do with an aging speed rusher.

But jaric..you have to pay him his bonus..

Not paying him is NOT an option...

Do you want to do it now..when we're tight under the cap..

..or in 2014..when we have 12 mil more room..and other deals (like Gary Brackett) have gone over the sunset..?

[mmcrazylikeafox]

I think the colts should cut a few veterans so they can go after some of the big name free agents. If we cannot sign Wayne to a reasonable contract, what about signing Hinds Ward?

I don't want to see Ward as a Colt! I say draft all the young players we can get with or without PM as our #1 QB. Luck or PM I'm sure would do just fine with young receivers.

[UndecidedFrog]

He's in his 30s...3 years is long term......He's retired after that

,..and as you've said before..we cant afford his cap hit...$19 mil in 2012...

.,.why would you not guarantee the balloon payment but guranatee it in 2014 when we can handle it..

You dont have to convince him to stay..He's under contract...

If the money's guaranteed...(as i assume a bonus is) why would you want to blow up your cap now..and why would he care (2012 or 2014) when he his 8-figure truck-full-of-cash ship comes in...?

First, I never said that we cannot afford Freeney's cap hit. Please do not misrepresent me. What I have said is that the 2012 cap is tight, and the 2 largest pieces of the 2012 cap are Freeney ($19) and Manning ($17). You can always afford any one player, but cutting others.

Second, there are no such things as guaranteed future contract payments in the NFL. Any team can cut any player at any time without having the obligation to pay that player anymore than he has been paid to that date. That is why we have these upfront bonus (guaranteed money) structures, because players (and their agents) want and need this security....giving them money now, in the event the team cuts them for whatever reason (age, productivity, injury, cap space). Therefore it is not possible to structure paying Freeney with a guaranteed large hamburger tomorrow if he agrees to play for a small hamburger today.

This is even evident in his current contract. The Colts can cut Freeney now, and not pay him his balloon salary of $14.035MM.

If I wanted Freeney to stay beyond 2012, I would need to offer him an extension that he would find fair and equitable when compared to his perception of what other offers he may receive next year around this time.

[Jaric]

But jaric..you have to pay him his bonus..

Not paying him is NOT an option...

Do you want to do it now..when we're tight under the cap..

..or in 2014..when we have 12 mil more room..and other deals (like Gary Brackett) have gone over the sunset..?

I've made peace with the idea that he won't be back. I just don't think we can afford him.

[UndecidedFrog]

But jaric..you have to pay him his bonus..

Not paying him is NOT an option...

Do you want to do it now..when we're tight under the cap..

..or in 2014..when we have 12 mil more room..and other deals (like Gary Brackett) have gone over the sunset..?

Mark,

Under the accounting rules for figuring the cap, all upfront bonus monies are pro-rated in equal installments over the contract period, and each piece is amortized every year. Therefore the total amount of the upfront bonus does not hit the cap all at once.

[jwilli69]

If we go 3-4, I could see where Mr Freeney is asked to redo his contract where his bonus would be 14 mil (this years base salary), turn it into a 3 year contract that makes an avg of 10 mil/yr. So you have a salary of about 5.5/yr with the 14 in bonus money spread over that span making it a 3 yr 30 mil contract. Not bad for end of career stuff. If he balks, I could see him moved on his way understanding the team is going to a 3-4 which he will be a fish out of water in. I suppose you could then just offer it over to Mathis at that point.

[UndecidedFrog]

If we go 3-4, I could see where Mr Freeney is asked to redo his contract where his bonus would be 14 mil (this years base salary), turn it into a 3 year contract that makes an avg of 10 mil/yr. So you have a salary of about 5.5/yr with the 14 in bonus money spread over that span making it a 3 yr 30 mil contract. Not bad for end of career stuff. If he balks, I could see him moved on his way understanding the team is going to a 3-4 which he will be a fish out of water in. I suppose you could then just offer it over to Mathis at that point.

Freeney's current contract provides him with $69.5MM over 6 years, of which $27.5 were bonuses. That's an average annual compensation of $11.58MM.

Your proposed extension would be for Freeney to forego $14.035MM of the above, to accept:

$14MM upfront bonus

$5.5MM salary each year for 3 years

which will provide him with $30.5MM over 3 years, of which $14 is bonus. That's an average annual compensation of $10.17MM.

So, in effect, what you are asking Freeney and his agent to accept is to give up $14.035MM in 2012, in return for a future real dollar cash flow of:

$19.5MM in 2012

$5.5MM in 2013

$5.5MM in 2014.

IMO, he would only do this if he thinks he cannot get a better offer in 2013, 2014 from other teams. Is $5.5MM extra in 2012 worth a potential extra $10MM is both 2013 and 2014? Interesting proposal.

Now, from a salary cap perspective, your proposal would look like this:

2012 cap hit = $5MM (tail of the last unamortized bonus piece from old contract) + $4.67 pro-rated bonus ($14/3)+ $5.5 salary = $15.17MM

This is better than the previously projected $19.035MM.

[jwilli69]

• Holy jesus, I have been looking at the wr salaries and Garcon is going to end up with a contract somewhere in the neighborhood of between 7-10 million a yr based on what other recievers have taken. The Brandon Marshall or Santonio Holmes is probably what he and his agent are eye balling and he will want that if not just a bit under. Miles Austin is pulling just at 8 mil/yr so maybe that is his benchmark as Austin certainly isn't heads and shoulders above Garcon so are we looking at a 6 yr 48 mil contract for Garcon? 8 mil SB with a few escaltors of say 2-3 mil for pro bowl bid or all pro type? Increase the base salary in the last 3 years of the deal so if he just doesn't pan out, it will be easier to part ways? Going to be a bit of a gamble on a near 50 mil contract with Garcon but sometimes you have to take those leaps.
  

[FireJimCaldwell]

If Freeney and/or his agent is viewing 14million as his 2012 salary, then they are viewing it foolishly. There is no chance he's paid that, he will be in another uniform before he's paid 14 million this coming season.

He'll either agree to an extension

or

He'll be traded or released.

So I don't see comparing a new deal to 14 million this season a valid point because that 14 million is nothing but fiction at this point.

[jwilli69]

If Freeney and/or his agent is viewing 14million as his 2012 salary, then they are viewing it foolishly. There is no chance he's paid that, he will be in another uniform before he's paid 14 million this coming season.

He'll either agree to an extension

or

He'll be traded or released.

So I don't see comparing a new deal to 14 million this season a valid point because that 14 million is nothing but fiction at this point.

I agree he won't get 14 million for this season and a cap hit of 19 but to negotiate this down, you are going to have to give him something of the 14 spread out over a 3-4 year deal. I would think if we cut him, he would be able to get a deal worth 10 mil for a couple to three years anyways. so if we can do a 30mil/3 yr deal we end up giving him and additional 2 yr contract worth 8 mil each season on top of the 14 mil this 2012 season. Make his first year salary 3 mil+his bonus figured in and then increase the last 2 years base salary accordingly. Heck, if his wheels fall off next year, cut him in 2014 and eat the 4.67 bonus money and move on. It will be interesting to see these deals unfold soon. When does the Colts have to either cut Freeney or pay the 14 mil? is it the start of the football season in Aug?

[FireJimCaldwell]

I agree he won't get 14 million for this season and a cap hit of 19 but to negotiate this down, you are going to have to give him something of the 14 spread out over a 3-4 year deal. I would think if we cut him, he would be able to get a deal worth 10 mil for a couple to three years anyways. so if we can do a 30mil/3 yr deal we end up giving him and additional 2 yr contract worth 8 mil each season on top of the 14 mil this 2012 season. Make his first year salary 3 mil+his bonus figured in and then increase the last 2 years base salary accordingly. Heck, if his wheels fall off next year, cut him in 2014 and eat the 4.67 bonus money and move on. It will be interesting to see these deals unfold soon. When does the Colts have to either cut Freeney or pay the 14 mil? is it the start of the football season in Aug?

It's pretty obvious that the majority of that will be the signing bonus or a part of the signing bonus if it were to exceed 15 million. The 14 million is his base salary which would be set to be paid out over 17 weeks of the season, so technically there aren't any time constraints on his contract, but it would be more beneficial to the team to get it worked out sooner than later so they can lower his cap hit.

[UndecidedFrog]

So I don't see comparing a new deal to 14 million this season a valid point because that 14 million is nothing but fiction at this point.

According to this same reasoning, he will not accept a balloon salary at the end of his next contract, because that will be viewed as fiction as well.

[FireJimCaldwell]

According to this same reasoning, he will not accept a balloon salary at the end of his next contract, because that will be viewed as fiction as well.

Most likely he won't. It will be what? 8-9 years at that point from the time he signed his previous deal? I still feel the 14 million salary is an instrument that was set up to create an extension or a release/trade based on how the team felt about him at this point in time. This next contract should look much different than his previous one in terms of length, average and structure.

[UndecidedFrog]

Most likely he won't. It will be what? 8-9 years at that point from the time he signed his previous deal? I still feel the 14 million salary is an instrument that was set up to create an extension or a release/trade based on how the team felt about him at this point in time. This next contract should look much different than his previous one in terms of length, average and structure.

Yes, the next contract will likely be his last, so people who are trying to save $$$ should not think of doing this balloon again with him.