Quote:
Originally Posted by IndyNorm
Where do you think the cap space to sign a top DE is going to come from? We currently have $34M in cap space, so will probably need to restructure/cut some guys just to bring back Jones, Pierce, Cross, and anyone else we want to keep.
|
See if this helps. They can spread this out for 5 years. Maybe Sherck can better explain it. If I am reading this correctly they can pay the player up front and it will only count against the cap so much per yr.
That has been an issue in the past with liquid money from Jim. The girls have sold off a shit ton of Jim's stuff so they could be flush with cash to make thia hapen
From Grok
NFL signing bonuses are included in the team's salary cap, but they are not charged in full immediately. Instead, they are prorated (spread evenly) over the life of the contract, up to a maximum of five years.For example:A $20 million signing bonus on a four-year contract adds $5 million to the cap each year.
On a five-year (or longer) contract, it adds $4 million per year (or less if spread over five).
This proration rule comes from the NFL Collective Bargaining Agreement (CBA) and allows teams to manage cap space by spreading the impact, while the player typically receives the full bonus upfront. If the player is cut or traded early, the remaining prorated amount accelerates as dead money on the cap (potentially spread over two years with a post-June 1 designation).This system is widely used for restructures—converting base salary into signing bonuses to create immediate cap relief—and remains in effect as of 2025-2026 under the current CBA. Unlike roster bonuses (which often hit the cap in full in the year earned), signing bonuses benefit from this spreading mechanism.
NFL signing bonuses are typically paid to the player up front—often as a lump sum shortly after signing the contract (within days or weeks), or at minimum in installments with the bulk received quickly.This is a key reason signing bonuses are attractive to players: they get a large amount of guaranteed money immediately, while the team spreads (prorates) the salary cap impact over the contract's length (up to 5 years).In most cases, the full bonus is paid immediately or very soon after signing.
Contracts can include deferred payments or installments (e.g., part paid on signing, the rest within the first year or by the next March), but the CBA ensures significant portions are paid promptly—at least half within 12 months, with the rest by the following March 31 unless otherwise specified.
Rare exceptions exist (like some rookie deals with minor deferrals), but the standard practice is upfront payment to provide player security.
This upfront cash flow is why teams often convert base salary into signing bonuses during restructures—the player gets the money right away, creating immediate cap relief for the team.