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Old 03-08-2013   #58
paycheck71
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Default Re: Texans - 2.4 Million Cap Carryover for 2013

Quote:
Originally Posted by tru80texan View Post
I'm not a salary cap expert nor will I ever care enough to get in depth w/ it, but what I've picked up over time is that if a restructure happens it normally converts a base salary that counts against the salary cap into a bonus of some sort. The bonus is guaranteed money now & normally it's spread over the remaining length of the contract. The issue w/ this is if the player is cut before the contract expires then that remaining bonus that has been spread out becomes "dead money" against the cap. So ultimately the team gets hit hard by that bonus in a short period of time against the cap space that becomes useless for a year or 2. This seems to be an issue if their is potential to cut the player in the future because no one can see the future. There is very rarely a player whom is off limits to being cut, but you would believe someone such as Andre may qualify. This is my limited knowledge concerning restructures, but it does seem to be helpful tool if utilized properly & it seems many teams utilize it to their advantage to create space & remain competitive by retaining or obtaining key players. I'm just not sure why the Texans seem reluctant to do the same as it seems we could lose multiple starters this offseason.

I'm sure there is quite a bit more to restructuring & how it effects the cap so if anyone can enlighten us I know I would appreciate it.
I'm not a cap expert either, but you're basically correct, you take a players current year's salary, convert it all but the minimum (or whatever amount) into bonus, pay it now, but spread the cap hit over the remainder of the contract. The problem isn't just dead money if the player is cut, it's the fact that his cap hit for every year in the future has now gone up in exchange for creating cap room this year. You're pretty much borrowing cap room from the future years.

I think i'ts OK to do that occasionally, but I'm definitely against restructuring 3 guys all in the same year.
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