Things that make you go hmmmmmmm……….Salary Cap Edition

[sherck]

WARNING: Salary Cap Related……profound boredom might overcome you.

Over the first two years as the Colts GM, Chris Ballard structured his veteran contracts in a very specific way. His structure delivered all of a contracts guaranteed money in the first year or two of the contract with no negative cap hit in later years. All contracts paid a level amount or a decreasing amount as the contact ran (i.e. no “ballooning” contracts with big pay outs at the end no one expects the team to honor). Examples of this are:

Jonathan Hankins, 3-year, $27.000m, $9.0m average per year, $10.5m guaranteed in year one (salary + roster bonus) with nothing guaranteed in year two or beyond.

Jabaal Sheard, 3-year, $25.500m, $8.5m average per year, $9.5m guaranteed in year one (salary + roster bonus) and $3.25m of his year two salary guaranteed with zero money guaranteed in year three.

Eric Ebron, 2-year, $13.000m, $6.5m average per year, $6.25m guaranteed in year one (salary + roster bonus) with nothing guaranteed in year two.

Jack Doyle, 3-year, $18.900m, $6.3m average per year, $7.5m guaranteed in year one (salary + roster bonus) with nothing guaranteed in year two or beyond.

Denico Autry, 3-year, $17.800m, $5.9m average per year, $6.5m guaranteed in year one (salary + roster bonus) with nothing guaranteed in year two or beyond.

John Simon, 3-year, $13.500m, $4.5m average per year, $5.5m guaranteed in year one (salary + roster bonus) with nothing guaranteed in year two or beyond.

In the first two years with Ballard as GM, almost all the contracts (except for Sheard) followed the exact same pattern; no signing bonus (spread out over the life of the contract) but instead guaranteed first year salaries and guaranteed first year roster bonuses. The same pattern.

So, why am I bringing this up? Mark Glowinski.

3-year contract

$16.200m total worth (smaller than expected since it was reported as an $18m contract)

Signing Bonus = $4.200m (this is the first veteran signing bonus on a multi-year contract Ballard has done as Colts GM)

Average Cap Hit = $5.400m per year

Year One = $1.500m salary, $1.400m pro rated signing bonus hit, $500k roster bonus = $3.400m cap hit
Year Two = $4.250m salary, $1.400m pro rated signing bonus hit, $500k roster bonus = $6.150m cap hit
Year Three = $4.750m salary, $1.400m pro rated signing bonus hit, $500k roster bonus = $6.650m cap hit

Some Questions:

A) Why a super low salary for year one? A team typically only does this when they need to save cap space in that year, not when they have more than $110m to spend.

B) Why a signing bonus that is now pro-rated across the life of the contract? Why not continue to pay roster bonuses that will not impact future years? The only reason I can think of is that the player needed the money NOW and not in early March (when the new season starts and roster bonus can be paid).

C) Why does he choose now to “balloon” a contract when he did not choose to do so earlier? Sure, it is a small contract and the balloon is tiny (in relation to the size of the cap) but it breaks a pattern Ballard has established.

Not a huge disturbance in the Force but I have zero idea with as much cap space as we have why he broke pattern to give both a signing bonus instead of a roster bonus and to balloon the contract between years one and two to save money in 2019. It makes little sense to me.

Walk Worthy,

[Pez]

WARNING: Salary Cap Related……profound boredom might overcome you.

Over the first two years as the Colts GM, Chris Ballard structured his veteran contracts in a very specific way. His structure delivered all of a contracts guaranteed money in the first year or two of the contract with no negative cap hit in later years. All contracts paid a level amount or a decreasing amount as the contact ran (i.e. no “ballooning” contracts with big pay outs at the end no one expects the team to honor). Examples of this are:

Jonathan Hankins, 3-year, $27.000m, $9.0m average per year, $10.5m guaranteed in year one (salary + roster bonus) with nothing guaranteed in year two or beyond.

Jabaal Sheard, 3-year, $25.500m, $8.5m average per year, $9.5m guaranteed in year one (salary + roster bonus) and $3.25m of his year two salary guaranteed with zero money guaranteed in year three.

Eric Ebron, 2-year, $13.000m, $6.5m average per year, $6.25m guaranteed in year one (salary + roster bonus) with nothing guaranteed in year two.

Jack Doyle, 3-year, $18.900m, $6.3m average per year, $7.5m guaranteed in year one (salary + roster bonus) with nothing guaranteed in year two or beyond.

Denico Autry, 3-year, $17.800m, $5.9m average per year, $6.5m guaranteed in year one (salary + roster bonus) with nothing guaranteed in year two or beyond.

John Simon, 3-year, $13.500m, $4.5m average per year, $5.5m guaranteed in year one (salary + roster bonus) with nothing guaranteed in year two or beyond.

In the first two years with Ballard as GM, almost all the contracts (except for Sheard) followed the exact same pattern; no signing bonus (spread out over the life of the contract) but instead guaranteed first year salaries and guaranteed first year roster bonuses. The same pattern.

So, why am I bringing this up? Mark Glowinski.

3-year contract

$16.200m total worth (smaller than expected since it was reported as an $18m contract)

Signing Bonus = $4.200m (this is the first veteran signing bonus on a multi-year contract Ballard has done as Colts GM)

Average Cap Hit = $5.400m per year

Year One = $1.500m salary, $1.400m pro rated signing bonus hit, $500k roster bonus = $3.400m cap hit
Year Two = $4.250m salary, $1.400m pro rated signing bonus hit, $500k roster bonus = $6.150m cap hit
Year Three = $4.750m salary, $1.400m pro rated signing bonus hit, $500k roster bonus = $6.650m cap hit

Some Questions:

A) Why a super low salary for year one? A team typically only does this when they need to save cap space in that year, not when they have more than $110m to spend.

B) Why a signing bonus that is now pro-rated across the life of the contract? Why not continue to pay roster bonuses that will not impact future years? The only reason I can think of is that the player needed the money NOW and not in early March (when the new season starts and roster bonus can be paid).

C) Why does he choose now to “balloon” a contract when he did not choose to do so earlier? Sure, it is a small contract and the balloon is tiny (in relation to the size of the cap) but it breaks a pattern Ballard has established.

Not a huge disturbance in the Force but I have zero idea with as much cap space as we have why he broke pattern to give both a signing bonus instead of a roster bonus and to balloon the contract between years one and two to save money in 2019. It makes little sense to me.

Walk Worthy,

Good question. Complete conjecture, but I can imagine Glowinski and Muir insisting on this type of contact in exchange for signing below the $7.5M annual league average for an OG. (even lower now that it's actually a 16.2M contract when it was originally $18M).

I wonder if Glowinski and play center behind Boehm in a pinch.

[Pez]

In a way also, it fits with one of ballard's stated goals, that staying so far under the cap is for the purpose of paying our own veterans. Glow definitely proved his worth and didn't demand stupid money.

[TheMugwump]

Does this amount to a better short term deal for the player? If so, is it a sign of loyalty and a way to reward a player already on the team in order to encourage a certain...smoothness in future negotiations with on-roster players? Other than Doyle, none of those others were already Colts, right?

IDK, you tell me.

[sherck]

In a way also, it fits with one of ballard's stated goals, that staying so far under the cap is for the purpose of paying our own veterans. Glow definitely proved his worth and didn't demand stupid money.
But a contract that conformed to Ballard's track record would also fit with his stated goal.

3-year, $16.4m total

Year One = $4.2m guaranteed roster bonus, $1.3m salary = $5.5m cap hit

Year Two = $5.45m non-guaranteed salary (zero dead money)

Year Three = $5.45m non-guaranteed salary (zero dead money)


Same amount of guaranteed money, same money out of pocket for Irsay, same total dollar amount but structured in a way that matches what he did in the past.

I just don't see a reason for him to break his pattern.

Walk Worthy,

[sherck]

Does this amount to a better short term deal for the player? If so, is it a sign of loyalty and a way to reward a player already on the team in order to encourage a certain...smoothness in future negotiations with on-roster players? Other than Doyle, none of those others were already Colts, right?

IDK, you tell me.
Nope. Actually, doing it the way Ballard did it for the last 2 years is a better deal for the player because every new contract is the opportunity for a new, bigger contract.

If you have zero dead money in the later years of a contract, there is nothing holding a team to keeping you from hitting the open market by cutting you. Most NFL players will bet on themselves 100% of the time.

I still don't see it.

Walk Worthy,

[smitty46953]

But a contract that conformed to Ballard's track record would also fit with his stated goal.

3-year, $16.4m total

Year One = $4.2m guaranteed roster bonus, $1.3m salary = $5.5m cap hit

Year Two = $5.45m non-guaranteed salary (zero dead money)

Year Three = $5.45m non-guaranteed salary (zero dead money)


Same amount of guaranteed money, same money out of pocket for Irsay, same total dollar amount but structured in a way that matches what he did in the past.

I just don't see a reason for him to break his pattern.

Walk Worthy,

Irsay has a new guitar he is saving for? :cool:

[VeveJones007]

Good question. Complete conjecture, but I can imagine Glowinski and Muir insisting on this type of contact in exchange for signing below the $7.5M annual league average for an OG. (even lower now that it's actually a 16.2M contract when it was originally $18M).

I wonder if Glowinski and play center behind Boehm in a pinch.

This was my first thought. Glow wanted a little more guarantee that he wouldn’t be looking for a new place to play in 2020.

[VeveJones007]

Nope. Actually, doing it the way Ballard did it for the last 2 years is a better deal for the player because every new contract is the opportunity for a new, bigger contract.

If you have zero dead money in the later years of a contract, there is nothing holding a team to keeping you from hitting the open market by cutting you. Most NFL players will bet on themselves 100% of the time.

I still don't see it.

Walk Worthy,

This isn’t something new to the league. Players and agents agree to these types of deals all the time. It’s a trade off decision that comes down to what the player values most.

[Chaka]

Interesting observation and breakdown, but I think you're reading too much into it. The contract structure Ballard has used previously was not sustainable if he wanted to compete for any of the more sought after free agents, so he was going to have to deviate from it regardless.

We can all guess why Glowinski's structure is slightly different from the earlier ones (maybe Glowinski wanted the money right away for some reason, as you suggested), but unlike the other free agents he is a free agent-to-be - meaning that he had a bit more leverage that the other free agents and could ask for something more tailored to his needs.

Ultimately, though, the contract isn't all that different in substance - it's still basically a one-year deal for $5.7 guaranteed and two option years. Whether that $5.7 is absorbed this upcoming year, or over the next three isn't that significant in my view.

[JAFF]

WARNING: Salary Cap Related……profound boredom might overcome you.

Over the first two years as the Colts GM, Chris Ballard structured his veteran contracts in a very specific way. His structure delivered all of a contracts guaranteed money in the first year or two of the contract with no negative cap hit in later years. All contracts paid a level amount or a decreasing amount as the contact ran (i.e. no “ballooning” contracts with big pay outs at the end no one expects the team to honor). Examples of this are:

Jonathan Hankins, 3-year, $27.000m, $9.0m average per year, $10.5m guaranteed in year one (salary + roster bonus) with nothing guaranteed in year two or beyond.

Jabaal Sheard, 3-year, $25.500m, $8.5m average per year, $9.5m guaranteed in year one (salary + roster bonus) and $3.25m of his year two salary guaranteed with zero money guaranteed in year three.

Eric Ebron, 2-year, $13.000m, $6.5m average per year, $6.25m guaranteed in year one (salary + roster bonus) with nothing guaranteed in year two.

Jack Doyle, 3-year, $18.900m, $6.3m average per year, $7.5m guaranteed in year one (salary + roster bonus) with nothing guaranteed in year two or beyond.

Denico Autry, 3-year, $17.800m, $5.9m average per year, $6.5m guaranteed in year one (salary + roster bonus) with nothing guaranteed in year two or beyond.

John Simon, 3-year, $13.500m, $4.5m average per year, $5.5m guaranteed in year one (salary + roster bonus) with nothing guaranteed in year two or beyond.

In the first two years with Ballard as GM, almost all the contracts (except for Sheard) followed the exact same pattern; no signing bonus (spread out over the life of the contract) but instead guaranteed first year salaries and guaranteed first year roster bonuses. The same pattern.

So, why am I bringing this up? Mark Glowinski.

3-year contract

$16.200m total worth (smaller than expected since it was reported as an $18m contract)

Signing Bonus = $4.200m (this is the first veteran signing bonus on a multi-year contract Ballard has done as Colts GM)

Average Cap Hit = $5.400m per year

Year One = $1.500m salary, $1.400m pro rated signing bonus hit, $500k roster bonus = $3.400m cap hit
Year Two = $4.250m salary, $1.400m pro rated signing bonus hit, $500k roster bonus = $6.150m cap hit
Year Three = $4.750m salary, $1.400m pro rated signing bonus hit, $500k roster bonus = $6.650m cap hit

Some Questions:

A) Why a super low salary for year one? A team typically only does this when they need to save cap space in that year, not when they have more than $110m to spend.

B) Why a signing bonus that is now pro-rated across the life of the contract? Why not continue to pay roster bonuses that will not impact future years? The only reason I can think of is that the player needed the money NOW and not in early March (when the new season starts and roster bonus can be paid).

C) Why does he choose now to “balloon” a contract when he did not choose to do so earlier? Sure, it is a small contract and the balloon is tiny (in relation to the size of the cap) but it breaks a pattern Ballard has established.

Not a huge disturbance in the Force but I have zero idea with as much cap space as we have why he broke pattern to give both a signing bonus instead of a roster bonus and to balloon the contract between years one and two to save money in 2019. It makes little sense to me.

Walk Worthy,

1. Glowinski has an agent, so if they wanted to stay in Indy, they may have had some conditions they wanted

2. Could it be due to the new tax rates with the Fed? I can't say I'm up on the changes because my income has not fluxuated much. But it may be better to spread out his contract for an average income rather than taking a big hit on a big bonus?

[omahacolt]

Irsay has a new guitar he is saving for? :cool:

I saw him on a documentary playing George Harrison’s Gibson sg. This was 2012 and irsay looked like a completely different person.

That guitar was beautiful.

[indycolts2]

I saw him on a documentary playing George Harrison’s Gibson sg. This was 2012 and irsay looked like a completely different person.

That guitar was beautiful.

Aging is not treating him well at all.

[JAFF]

Aging is not treating him well at all.

That's his life catching up with him

[Indiana V2]

You may be a nerd, but you're our nerd!