Contract Question - When can a new deal be made from scratch vs Cap hits/Dead Money?

[Matt_In_NH]

15 hours ago, SoonerBillsFan said:

Not really. 1 per offseason is no big deal. AND the player gets guaranteed money in hand and can sign with another team.  

 

It's a win win.

1 what?   One million dollars or one 50 million dollars?   Yes really.  Think like it’s your money.  

Edited February 28 by Matt_In_NH

[transplantbillsfan]

Thought about making a thread asking this question, but I think it fits here:

 

How about Void years?  We just restructured Conner McGovern's contract and added 2 void years at the end of his contract.  This means that even though his contract expires at the end of 2025, there will still be dead cap money for 2 more years.

 

So does this basically just provide extra motivation to extend him for 2 more seasons beyond 2025?  And if we do that, does that basically just mean the void years we just put in his contract don't end up impacting the team at all?

 

Then as a follow up question, when we signed Leonard Floyd last offseason, it was reported that there was a void year (I think just one) that we added into the deal.  According to Spotrac, Floyd has a dead cap hit THIS YEAR of $4,376,250.

 

Now... IF that is correct regarding the Floyd deal AND my thoughts about extending a player who has void years would be beneficial in terms of the CAP, wouldn't it be wise to just sign him to another deal for next year since you're already paying him over $4m???  Even if Floyd goes out in the market and gets an offer of $10m on a one year deal from a team, the Bills could technically offer him the exact same deal and pay less than $6m in new money, correct???

 

Anyone with an understanding of the void years thing???  An explanation would be much appreciated 

[GunnerBill]

1 hour ago, transplantbillsfan said:

Even if Floyd goes out in the market and gets an offer of $10m on a one year deal from a team, the Bills could technically offer him the exact same deal and pay less than $6m in new money, correct???

 

 

Not correct. I have replied to your thread.

[T master]

On 2/23/2024 at 4:49 PM, FireChans said:

I’m my understanding is that you can work in extensions that basically work as a restructure in regards to cap hit, adding on extra years that allow you to bring down the cap hit short-term. If those extensions don’t come at the end of the contract, say there’s two years left, the original terms are ripped up and the new terms are set.

 

The reason you wouldn’t do this is if the player is not going to be here long term or is a retirement risk.

 

Diggs is a good example.

 

The original terms of his contract went through 2024. We extended him two years early, effectively “ending” that contract, and bringing his cap hit down to $11M and $14M for the last two seasons.

 

You can play this game of chicken for awhile, but if the player becomes old and you need to move on or retires, you are going to accelerate that money and there will be some pain.

 

It’s why Josh’s impending cap hit doesn’t matter, much like Brees’ cap hit didn’t matter. There’s still going to be a sizable hit, but as long as you can keep the balls in the air with extensions and restructuring, the real pain of the cap hit is delayed until they depart from the team.

 

This is how the Buc’s signed Tom Brady. Due to his retirement, they had all his dead money floating around. But there’s no reason to not keep extending and restructuring cornerstones like franchise QB’s because it’s gonna suck when they retire regardless.

 

In the Von example, we can add years on and reduce his cap hit but why would we do that? If he retired next year, it would just be more pain. 

 

I can't understand why in cases like Von's that the contracts aren't based solely on performance in the way of incentives . Like give them a base salary of X amount then like with Floyd last year when you hit double digit sacks you get more money, so many tackles more money, if your injured less money or only your base salary seems that would be a better plan .

 

 

I get it in their prime or a player like Bruce Smith which i know Von kind of is but not quite a Bruce . I hope that Von can come back & prove to be worth the money . I just don't understand why there aren't more wording to effect the out come of monies paid out incase of injury or lack of production .