Re-structuring Contracts to free up $$$

Discussion in 'Texans Talk' started by Mean Machine, Feb 1, 2012.

  1. Mean Machine

    Mean Machine Veteran

    Joined:
    May 6, 2004
    Messages:
    238
    Likes Received:
    24
    Location:
    Round Rock, TX
    What are the possibilities for the Texans to free up salary cap space with some restructuring current long term players under contract in order to sign our most important free agents:
    Mario Williams
    Arain Foster
    Chris Myers
    Mike brisiel
    Joel Dreesen

    I know we have several under long term contracts:
    Andre Johnson thru 2017
    Demeco Ryans thru 2016
    Antonio Smith thru 2014
    Kevin Walter thru 2015
    Owen Daniels thru 2014
    Kareem Jackson thru 2015
    Jacoby Jones thru 2013
    Johnathan Joseph thru 2016
    Eric Winston thru 2013

    I'm just not a capologist and have no idea how we can make it happen.
     
  2. Dutchrudder

    Dutchrudder COOL BEANS!

    Joined:
    Jan 25, 2010
    Messages:
    15,064
    Likes Received:
    1,332
    Location:
    Houston
  3. NastyNate

    NastyNate I go kerplunk

    Joined:
    Dec 8, 2011
    Messages:
    1,826
    Likes Received:
    179
    Location:
    Seabrook
    I don't think that really helps to answer the question at hand. I am not very versed in capology either, would be interesting to hear how a GM and player go about re-structuring for less cap hit.
     
  4. Mean Machine

    Mean Machine Veteran

    Joined:
    May 6, 2004
    Messages:
    238
    Likes Received:
    24
    Location:
    Round Rock, TX
    That's the deal, are there ways we can front load Andre Johnson's contract now, so we can have more for salary cap today?

    I've heard of this before, but is this even possible with the new CBA?
     
  5. dalemurphy

    dalemurphy Hall of Fame

    Joined:
    May 3, 2004
    Messages:
    6,109
    Likes Received:
    661
    Location:
    Austin

    Extending Schaub's deal is the most likely solution to save a few million this season. Of course, his lisfranc injury complicates that option.
     
  6. ArlingtonTexan

    ArlingtonTexan Moderator Staff Member

    Joined:
    May 3, 2004
    Messages:
    6,159
    Likes Received:
    465
    They restrcutred a couple of guys before last season if I am not mistaken. Overall, I think the trouble capwise if you are constantly doing the restructures because a team is essentially using it credit cards.
     
  7. IDEXAN

    IDEXAN Hall of Fame

    Joined:
    Feb 18, 2010
    Messages:
    8,722
    Likes Received:
    223
    Location:
    Houston
    Exactly. It's kinda comparable to what's going on with the countrys finances right now which is we can only defer our obligations so long until they come due.
     
  8. False Start

    False Start On # 69

    Joined:
    Jun 15, 2005
    Messages:
    13,593
    Likes Received:
    1,064
    Location:
    Waiting For the Turning Point!
    delete.
     
    Last edited: Feb 1, 2012
    Bulls on Parade likes this.


  9. Dutchrudder

    Dutchrudder COOL BEANS!

    Joined:
    Jan 25, 2010
    Messages:
    15,064
    Likes Received:
    1,332
    Location:
    Houston
    It's an entire thread about salaries that is based on speculation and second hand reports of each player's contract. I don't think there is much else to add, except that if you want to shuffle around some dollars there's a good place to start with salary estimates. It also details the available caproom and some contracts that can be cut to save money like JJ and Lienart. If the OP wants to throw out some numbers, that thread has sufficient info to start with.

    If you want some examples of moving money or structuring deals to help relieve caproom in one year, look at the Jets last year. They are going to be in cap hell in 2012 due to all their shuffling trying to get Aso. Holmes made about 3 mill last year, but will get 9 mill this year and 12.5 the next. Cromartie got 2.2 mill, but will get 5 in 2012 and 8 in 2013. Just check out some of their contracts and see if that's the position you would like to see the Texans in next year:

    www.spotrac.com/nfl/new-york-jets/
     
  10. DocBar

    DocBar Hall of Fame

    Joined:
    Apr 6, 2005
    Messages:
    9,926
    Likes Received:
    472
    Location:
    I'm international
    Everyone seems to be focusing in on Mario and this years FA's. What about the FA's after the 2012 season? The Texans are already on the brink of being in cap hell and it's not all a bunch of funny money that can be swept under a contractual rug.
    As far as restructuring goes, the length of the contract is not nearly as important as the gauranteed money.
     
  11. NastyNate

    NastyNate I go kerplunk

    Joined:
    Dec 8, 2011
    Messages:
    1,826
    Likes Received:
    179
    Location:
    Seabrook
    Yes I have picked through that thread as well, very informative. I don't think I'm delineating my point very well, I'll try and figure out a way to better voice my question.
     
  12. Dutchrudder

    Dutchrudder COOL BEANS!

    Joined:
    Jan 25, 2010
    Messages:
    15,064
    Likes Received:
    1,332
    Location:
    Houston
    Well, I re-read the post, and I think I know what you're asking for. As far as restructuring goes, anything is on the table except signing bonuses. If a hypothetical player makes 5, 6, 7, 8, mill a year over 4 years for a total of 26 million, a GM can meet with his agent and move that money around. They can change things like the amount of guaranteed money as an incentive to make them shift that salary. So you could wind up with a 2, 11, 3, 10 setup instead because the team needs extra money in the first and third years.

    The issue with doing this though is that the GM and player/agent must agree on the deal. Suppose in that example there were no other bonuses or signing bonuses and the guaranteed money was 13 million (half the contract). The player would not go for this restructured deal because he could be cut outright after year 2 of the restructure, whereas in the original contract he would have been paid 2 million if he was cut in that year. But it also gives him a chance to earn 7 million in the old deal, instead of 3 million. It's not a good deal for the player in that case.

    It's a give and take, but not uncommon. The hypothetical player in this case would probably go for the restructure if the GM guarantees that 3 million in year 3. That would increase the overall guaranteed money to 16 million without increasing the cap hit overall. Not a bad deal if they are willing to pay him an average of 6.5 mill a year anyways. But that's one way to look at things.
     
  13. badboy

    badboy Site Contributor

    Joined:
    Apr 19, 2007
    Messages:
    25,342
    Likes Received:
    969
    Location:
    Clear Lake
    Usually, reworking a contract offers the player money up front to allow the re-negotiating. I think the approach should be to focus on the FAs both our own and new guys and backloading the deals. Money up front pleases the player and high total contract benefits the agent. The new TV contract offers big money that can be used to offer big dollars in 2013 and beyond.
     
  14. thunderkyss

    thunderkyss Salem Poor

    Joined:
    Sep 19, 2005
    Messages:
    38,670
    Likes Received:
    1,699
    Location:
    Texas
    Are you sure? Sometimes, we confuse "guaranteed money" with signing bonus. Neither of which is really as important as the cap number. They, of course, make up the cap number based on the structure of the contract.

    But in & of itself, guaranteed money isn't any more relevant than the length of the contract (I don't think).
     
  15. b0ng

    b0ng Ooops

    Joined:
    Jul 21, 2007
    Messages:
    7,888
    Likes Received:
    613
    guaranteed money is the money that player will get no matter what. Break a leg serious enough for it to be career ending? Still get the guaranteed money. Get cut cause you blow donkey balls on the field? Still get the guaranteed money.

    Players re-structure, sign extensions and get cut all the time, which is why the length of the contract is sort of negligible in comparison to how much guaranteed compensation they will get no matter what happens.
     
  16. DocBar

    DocBar Hall of Fame

    Joined:
    Apr 6, 2005
    Messages:
    9,926
    Likes Received:
    472
    Location:
    I'm international
    The amount of gauranteed money will likely be the difference between resigning MW and him walking. Would you risk $50+ mil gauranteed on a player with a considerable history of injury?
     
  17. b0ng

    b0ng Ooops

    Joined:
    Jul 21, 2007
    Messages:
    7,888
    Likes Received:
    613
    Going to have to define "considerable injury history" unless 1 early season injury makes any player injury prone (sorry Daryl Sharpton, Owen Daniels, Roc Carmichael, and others).
     
  18. NastyNate

    NastyNate I go kerplunk

    Joined:
    Dec 8, 2011
    Messages:
    1,826
    Likes Received:
    179
    Location:
    Seabrook
    There ya go, exactly what I was looking for.
     
  19. Andrew6

    Andrew6 Site Contributor

    Joined:
    Sep 29, 2006
    Messages:
    3,092
    Likes Received:
    249
    Location:
    League City
    :kubepalm:
     
  20. Marcus

    Marcus Ruthless pragmatist

    Joined:
    Apr 30, 2004
    Messages:
    8,234
    Likes Received:
    635
    Location:
    Stafford, Texas
    If your on the side of letting Mario walk instead of signing him long term, you're going to put the injury-prone label on him to validate your case. Way too convenient.

    Schaub was "injury-prone" a couple of years ago, until he proved to most that he was a good QB. But now that he's out with a Lisfranc injury, where's the injury-prone label now?

    Instead of putting the injury-prone label on Mario, cut the bull**** and just say he's not that good of a player.
     

Share This Page