Johnson, Ryans & Smith Redo Contracts to get under the Cap

[JimBaker488]

Of course I know nothing about the specifics of these restructurings, but it sounds like it could present the 3 players in this kind of a deal with some unfavrible situations re income recognition from an income tax perspective ?

[Wolf]

AJ(Alan's) take on it

When an NFL contract is restructured, a significant portion of base salary from the old contract is converted to signing bonus which the player receives immediately. The signing bonus amount is then spread (prorated evenly) over the remaining years of the contract for cap accounting purposes.

Re-structures have win-win situation potential. The team gets immediate cap relief and the player gets a big check sooner instead of later. The only downside for the team is when the player is released with years remaining on his deal. When a player is released, the unrealized portion of the signing bonus 'accelerates' to the current year as 'dead money' on the cap.

But enough about cap accounting, what's noteworthy here isn't whose contract was re-structured, it was whose contract wasn't re-structured.

Mario Williams is in the final year of his six-year, $54 million ($26.5 million guaranteed) rookie deal he signed in 2006.

Williams' base salary this season is just under $14 million. That's a big cap number and is more than double the base salaries of Johnson, Ryans and Matt Schaub.

If there was ever a contract screaming for re-structure, it's a contract of of a player who's in the prime of his career, in the final year of his deal, and who counts a ton against the cap.

That is if the team wants to keep said player.

Texans fans were a bit skeptical when we first heard that Wade Phillips was moving to Mario to linebacker.

But we were reassured. Mario will become our version of DeMarcus Ware and he'd be rushing the passer 95% of the time and we'd all live happily ever after.

"He's got the talent," said Phillips. "With him standing up, he lines up a little wider, and he's coming every time on a different angle. This gives him the chance to be the premier rusher, just like DeMarcus." (chron.com)

So if the Texans have their version of Ware, why aren't they locking him up long-term?

http://www.examiner.com/houston-texa...not-among-them

[TexanSam]

Originally Posted by SheTexan

I've had a lady crush on him for years!

I know a lot of you guys aren't very religious, BUT, I truly thank GOD above for sending us AJ!! AND Demeco!! Two of the finest players in the league, and absolutely two of the finest MEN you will find anywhere!

IF we ever get to the SB, I will sell everything I own to be there, if I have to, just to see these two guys celebrate! They deserve it, as well as all us diehards who never give up!!

I thank the almighty Matt Millen for choosing Charles Rogers instead of Andre Johnson.

[Ole Miss Texan]

Originally Posted by Wolf

AJ(Alan's) take on it

http://www.examiner.com/houston-texa...not-among-them

I'm still not convinced this says too much about Mario. That's a long term high dollar deal that will take a while to negotiate between the team and mario/his agent. It's adding 4-5 new years to the contract and committing a TON more money. Dre, Demeco and Smith's deals weren't really renegotiated and extended.... just restructured which is 100x easier and quicker to do. I think Alan and LZ are reading too much between the lines here, although there is some truth to what they're saying: Mario is kind of wait and see. I don't see how extending Mario right this second is a smart business move for the Texans. They can get under the cap in other easier and quicker methods that doesn't put out more money and more guaranteed money to a player.

PS - They could have done the same with Schaub, he's got 2 years left. Extend/restructure Schaub who said he was willing to do so. By not doing so what is it say about their thoughts on Schaub? (just stirring the pot a little)

[noxiousdog]

Originally Posted by Ole Miss Texan

I'm still not convinced this says too much about Mario. That's a long term high dollar deal that will take a while to negotiate between the team and mario/his agent. It's adding 4-5 new years to the contract and committing a TON more money. Dre, Demeco and Smith's deals weren't really renegotiated and extended.... just restructured which is 100x easier and quicker to do. I think Alan and LZ are reading too much between the lines here, although there is some truth to what they're saying: Mario is kind of wait and see. I don't see how extending Mario right this second is a smart business move for the Texans. They can get under the cap in other easier and quicker methods that doesn't put out more money and more guaranteed money to a player.

PS - They could have done the same with Schaub, he's got 2 years left. Extend/restructure Schaub who said he was willing to do so. By not doing so what is it say about their thoughts on Schaub? (just stirring the pot a little)

They didn't have to wait until the last minute, and if they wanted to lock up that money should have been working on it prior to (and during tbh) the lockout.

There's definitely some wait and see going on here.

edit: If nothing else, 4-3 defensive ends get paid significantly more than 3-4 outside linebackers. It may be regardless of wanting him back, they might not be able to afford him. Saying that, let me look up a few guys to verify.

[The Pencil Neck]

By restructuring the contracts of Andre Johnson, DeMeco Ryans and Antonio Smith, the Texans are $2.6 million under the salary cap.

-- McClain.

[Ole Miss Texan]

Originally Posted by noxiousdog

They didn't have to wait until the last minute, and if they wanted to lock up that money should have been working on it prior to (and during tbh) the lockout.

There's definitely some wait and see going on here.

edit: If nothing else, 4-3 defensive ends get paid significantly more than 3-4 outside linebackers. It may be regardless of wanting him back, they might not be able to afford him. Saying that, let me look up a few guys to verify.

I don't disagree. But during the lockout were they allowed to negotiate with Mario and give him a new contract? They weren't sure what the new CBA would look like either so it's smarter just to wait since its not a huge pressing issue.

As far as 4-3 vs 3-4, that's a good question. It will be interesting to see how that plays out just from a position/contract standpoint. Sounds like Mario's going to be playing DE in a 4-3 during passing situations anyways and be a pass rusher on every other down just about, so I don't think Rick Smith can pull that card too much. Time will tell.

[Ole Miss Texan]

Originally Posted by The Pencil Neck

-- McClain.

Great! Question though: They had to be under the cap by August 4th... what about when they have final roster cuts and the season starts? There will be a lot of players cut, we may sign a few more players. How do we manage against the cap then? If we have to slim down the roster, there could be extra space available unless the cap is adjusted for a different roster size. Has anybody read about that?

There's still room for another good player! lol

[The Pencil Neck]

Originally Posted by Ole Miss Texan

Great! Question though: They had to be under the cap by August 4th... what about when they have final roster cuts and the season starts? There will be a lot of players cut, we may sign a few more players. How do we manage against the cap then? If we have to slim down the roster, there could be extra space available unless the cap is adjusted for a different roster size. Has anybody read about that?

There's still room for another good player! lol

That's what I was saying in another thread earler. We need some wiggle room under the cap in case something comes up. And as we start going through our cuts, we're going to free up a little more space.

Probably for some street FAs or trades.

[noxiousdog]

OLB
Ware: 2009 - 7 years 79 million. 40 guaranteed
Harrison: 2009 - 6 years 51 million. 20 guaranteed
Hali: 2011 - 5 year 60 million. 35 guaranteed
Suggs: 2009 - 6 year 62.5 million 38.1 guaranteed
Woodley: 2011 - 6 year 61.5 (27 in first two years)

DL
Freeney: 2007 - 6 years 72 million 31 guaranteed
Allen: 2008 - 6 years 74 million 31 guaranteed
Peppers: 2010 - 6 years 84 million 42 guaranteed
Johnson: 2011 - 6 years 76 million. 32 guaranteed

[noxiousdog]

Originally Posted by Ole Miss Texan

I don't disagree. But during the lockout were they allowed to negotiate with Mario and give him a new contract? They weren't sure what the new CBA would look like either so it's smarter just to wait since its not a huge pressing issue.

They weren't allowed to contact the player, nor sign a contract Regardless, there's a lot of wink wink, nudge nudge that goes on.

You saw how quickly Owen Daniels got done. Also, Jacoby's.

No way that happens if there's no contact during the lockout.