Carr's contract?

Discussion in 'Texans Talk' started by David's Busted Carr, Jan 2, 2007.

  1. David's Busted Carr

    David's Busted Carr Veteran

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    OK, I don't understand why we'll take over a 7 million dollar hit if we TRADE Carr. If we find another team that wants him, and they are willing to pay all or part of his contract, why do we take that hit?

    I would understand that if we CUT him, but not for trading him.

    And if that is the case how dumb are the Texans for doing this deal. They gave him the $8 million dollar up front bonus which was ridiculous, and now basically handcuffed themselves for dealing him b/c of this MONSTER cap hit.
     
  2. tulexan

    tulexan Hall of Fame

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    You amortize the bonus that you have already paid over the life of the contract. We would be paying the remainder of the bonus that has yet to been amortized.
     
  3. Tulip

    Tulip Hall of Fame

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    Yeah, I think it's all in the bonus. But I thought the Texans already claimed a portion on the 2005 salary cap. And then part on this year's. It couldn't be too much of a hit - not more than the hit we took on Todd Wade or Robaire Smith.
     
  4. tulexan

    tulexan Hall of Fame

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    It wouldn't be $7M or even close to that because I believe that we gave him a 3 year extension with an $8M bonus. That would mean that we are amortizing $2.67M per year for 3 years and we have already amortized 1 year. We would have to take an accelerated cap hit on the remaining $5.33M
     
  5. Lucky

    Lucky Moderator

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    Carr's contract would count $5.33 million if released or traded prior to the '07 season. If he plays for the Texans in '07 under his current contract, Carr would count just under $8 million against the cap. So, it's actually cheaper to trade or release Carr versus bringing him back. Of course, the Texans would have to pay some QB to replace him.
     
  6. Runner

    Runner Hubcap Diamond Staff Member

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  7. Sarg01

    Sarg01 Hall of Fame

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    Here's the deal:

    Carr's original contract ran through 2005 and his original signing bonus was prorated through 2005. Thus his original signing bonus is gone - we no longer need to account for it.

    In its place is an 8 million dollar bonus prorated over the extra years (2006, 2007 and 2008) of the contract. However, we exercised the option before the start of the 2006 season, thus enabling us to actually count 2005 as one of the bonus years. As a result, Carr's bonus accounts for 2 million of salary cap per year for 2005, 2006, 2007 and 2008. As 2005 and 2006 are now history, there is only 4 million of remaining unamortized bonus, representing 2007 and 2008.

    The "cap hit" associated with a Texans separation from Carr (by any method, trade or cut) would be roughly 4 million dollars.

    Carr also is due a salary of 5.25 million for 2007. This only counts against the cap if the Texans pay it. If another team (trade) or no one (cut) pays it, there is no impact to the Texans' cap.

    To look at it another way, we are currently planning on David counting 7.25 million against our 2007 cap (#2 on the team behind AJ's 8 mil). If we release or trade him, we must account for the 2008 portion of his bonus (2 million) BUT we would not be on the hook for his 2007 salary (5.25 million). Thus we effectively have a cap savings in 07 if we were to release or trade Carr.

    Please note: I am not endorsing a separation with Carr, absent an offer of a first round pick. I'm simpling pointing out the facts regarding the cap situation.
     
  8. Lucky

    Lucky Moderator

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    So the difference between keeping or releasing Carr is $3.25 million. Can the Texans bring in another QB for that? Maybe, if the new QB gets a big option bonus due in '08.
     


  9. Tulip

    Tulip Hall of Fame

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    Yeah, I think McClain misspoke on that one point - obviously the Texans would not take a hit on his 2007 salary if he is not on the 2007 roster. So the cap hit is $4 million if he's released or traded.
     

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