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Posted
He wont see the 2.3 and 2.4 million.

644741[/snapback]

 

agreed. it's another heavily backloaded deal. I wonder what he got for a signing bonus.

Posted
agreed. it's another heavily backloaded deal. I wonder what he got for a signing bonus.

 

Why do people think these contracts are so heavily backloaded?

 

History of Salary Cap

2002 71mil

2003 75 mil

2004 81 mil

2005 85 mil

2006 102 mil

 

In 5 years, the salary cap has gone up from 71 mil to 102 mil, a gain of over 40 percent. Lets assume the cap grows at 5% a year.

 

2007 107 mil

2008 112 mil

2009 118 mil

 

Now, I havent seen anything as to the magnitude of a signing bonus, but im going to assume 2mil. That means, as a percentage of the salary cap

 

2006 Cap 102 mil / hit 1.1 mil 1.0%

2007 Cap 107 mil / hit 2.4 mil 2.2%

2008 Cap 112 mil / hit 2.8 mil 2.5%

2009 Cap 118 mil / hit 2.9 mil 2.5%

 

This is NOT a backloaded contract. The pct of the cap hit is about the same years 2-4. First year is always low because you pay the guy the minimum and give him a signing bonus. This is SOP and not a backloaded contract. 2.5% of the cap for a guy like denney is probably reasonable.

Posted
Why do people think these contracts are so heavily backloaded?

 

History of Salary Cap

2002 71mil

2003 75 mil

2004 81 mil

2005 85 mil

2006 102 mil

 

In 5 years, the salary cap has gone up from 71 mil to 102 mil, a gain of over 40 percent.  Lets assume the cap grows at 5% a year.

 

2007 107 mil

2008 112 mil

2009 118 mil

 

Now, I havent seen anything as to the magnitude of a signing bonus, but im going to assume 2mil.  That means, as a percentage of the salary cap

 

2006 Cap 102 mil / hit 1.1 mil 1.0%

2007 Cap 107 mil / hit 2.4 mil 2.2%

2008 Cap 112 mil / hit 2.8 mil 2.5%

2009 Cap 118 mil / hit 2.9 mil 2.5%

 

This is NOT a backloaded contract.  The pct of the cap hit is about the same years 2-4.  First year is always low because you pay the guy the minimum and give him a signing bonus.  This is SOP and not a backloaded contract.  2.5% of the cap for a guy like denney is probably reasonable.

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GOOD FRIEKIN POINT, JimBob! I didn't think about it like that.

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