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Old 03-04-2014   #326
Dutchrudder 
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Default Re: Selection 1.11: JJ Watt DE Wisconson

Quote:
Originally Posted by infantrycak View Post
I think that is about where the apy will end up.

Not sure what you are talking about on the 5th year rookie deal. Signing bonus can't be prorated over more than 5 years but that may not be what you are suggesting.
Yeah, so if you have a total of 6 years on a deal, 1 current year plus the 5 year extension, you can start the prorated signing bonus caphit in the current year and play it out over the first 4 of the extension. So it's over 5 years, but only 4 of the years of the extension, which lessens the caphit per year over time. It's a not a huge deal, but it makes it a little easier to swallow the mega-contract if you can drop 5 million of it into that first year. It also helps protect the team a little by making it easier to let the player go towards the end of the deal if they are underperforming.

Example - 5 year 70m extension with 25m signing bonus (14m APY):
2015: 6 million salary (5th year rookie tag) + 5 million signing bonus = 11m
2016: 7 million salary + 5 million signing bonus = 12m
2017: 7 million salary + 5 million signing bonus = 12m
2018: 7 million salary + 5 million signing bonus = 12m
2019: 7 million salary + 5 million signing bonus = 12m
2020: 17 million salary

You could also move around the salary to add more to the backend, or even it out more. A good GM would convert some of the salary to roster and workout bonuses too, maybe 500k a year. But with this extension, JJ Watt gets 25 million in cash at the end of his rookie deal, so he's not pissed off about playing a 5th year for only ~6 million bucks. This would give him 31 million dollars in 2015, and the 25 million signing bonus would be earned under Texas state law, and free from state taxes. The other 6 million would be salary, and be subject to state taxes depending on game locations.
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