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Old 09-12-2012   #114
badboy
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Default Re: Matt Schaub Signs Extension

Quote:
Originally Posted by Fiddler View Post
Can you explain a little more about this, I'm not seeing how the structure benefits the team in the event Matt Can't play it out.
Sure, as reported the contract guarantees Matt $29 million. Probably helps to ignore the total deal of $66m for now. He gets bonus upfront $17.5m that is in his pocket now and part of that guarantee. 2012 base salary $4.4 (which is lower than the $7m he was scheduled to get) gives him $17.5 + 4.4 = $21.9m by end of this season + 2013 $7.25m = $29million guaranteed. The next three '14, '15 & '16 not guaranteed. If Smith decides to cut him, no salary owed for any of those years. The $17.5 bonus as explained in earlier posts is divided by the 5 year length of new deal including '12= $3.5m per year for team cap purposes. If cut after 2014, he gets no $ and the remaining years of bonus & for cap purposes it all applies to the next season in full. If he gets cut before game one 2014 for example or three seasons early, $3.5 times 3 remaining years or 10.5m goes against 2014 cap rather than his 2014 salary of $10m + $3.5 bonus = $13.5m cap. About $3m savings to cap but huge savings on salaries.
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