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Old 01-20-2014, 12:20 AM  
Direckshun Direckshun is offline
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Somebody explain this nonsense to me.
As we all know, I am not a very smart person.

So in a recent thread, with Just Passin' By posted a link about Brandon Flowers' contract specifics (to answer the question "how much would we save against the cap if we cut Flowers"), I, of course, became flummoxed.

Here's the link.

So, I want you to pretend you're talking to your 12 year old son (I like to think of myself as ChiefsPlanet's 12 year old son, anyway):

What do these words mean?
  • Base Salary
  • Prorated Bonus
  • Roster Bonus
  • Workout Bonus
  • Other Bonus
  • Cap Number
  • Dead Money
  • Cap Savings
Also:
  • What's the difference between Cap Flow and Cash Flow?
  • What's a Cash Bonus?
  • What's a Cash Number?
  • What's Cash-To-Cash?
  • What the hell is on this page?
I thank you for your time.
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Old 01-20-2014, 11:15 AM   #31
BossChief BossChief is offline
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Originally Posted by jkw87 View Post
Yeah, that's why I get. He'd be gone by spring.. But that contract is terrible. Who would we actually been in competition with to sign him? Are what I worry about with Dorsey... Daniels, Robinson, Bowe... In that order they get worse...
He also gave Colquitt a 5 year, 19 million dollar deal.
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Old 01-20-2014, 11:16 AM   #32
htismaqe htismaqe is offline
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Originally Posted by BossChief View Post
I think Berry, Hali, Flowers, Alex and Houston all get new deals over the coming months.
I agree.

Berry, Hali, and Flowers will convert cap to cash. Houston and Smith will push cash to the cap.
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Old 01-20-2014, 11:19 AM   #33
jkw87 jkw87 is offline
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Originally Posted by BossChief View Post
He also gave Colquitt a 5 year, 19 million dollar deal.
Yeah, I'm not intelligent enough to know if that's bad or not. To me, he's pretty ****ing amazing
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Old 01-20-2014, 11:20 AM   #34
BossChief BossChief is offline
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It's crazy to think that they were slated to pay 12 million next year to Chase Daniel, Dustin Colquitt and Dunta Robinson.

Honestly, I'd have probably let all 3 go elsewhere and drafted a punter.
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Old 01-20-2014, 11:20 AM   #35
Mr. Laz Mr. Laz is offline
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Originally Posted by ChiliConCarnage View Post
It depends on when he is cut. If they cut him today it'll all be dumped into 2014 I think so 3 million.
Actually i believe each team has an exception they can use for cutting a player before july 15th but still lets them prorate his cap hit for the current/next year.

40/60, 50/50 or 60/40
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Old 01-20-2014, 11:22 AM   #36
chiefzilla1501 chiefzilla1501 is offline
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A signing bonus isn't the same thing as guaranteed money.

Like with Bowes deal,

3/4/2013: Signed a five-year, $56 million contract. The deal contains $26 million guaranteed -- a $15 million signing bonus, Bowe's 2013 and 2014 base salaries, and $1.75 million of his 2015 salary. Bowe is eligible for annual $250,000 workout bonuses throughout the contract's life. 2014: $8.75 million, 2015: $10.75 million, 2016-2017: $9.75 million, 2018: Free Agent

That means if Bowe doesn't have a good year in 2014, sianara.
It's guaranteed money because no matter what the Chiefs do, they have to pay Bowe $15M. Bowe's $15M counts against the cap for the next 5 years. If they cut him today, they take a $12M cap hit. If they cut him next year, they take a $9M cap hit. That's a lot of money to pay for a player no longer on your roster, but it's also the point in his contract where you start to "save" money by cutting him.
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Old 01-20-2014, 11:24 AM   #37
chiefzilla1501 chiefzilla1501 is offline
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Originally Posted by jkw87 View Post
Yeah, that's why I get. He'd be gone by spring.. But that contract is terrible. Who would we actually been in competition with to sign him? Are what I worry about with Dorsey... Daniels, Robinson, Bowe... In that order they get worse...
You should leave a comment in the "Dorsey wins Executive of the Year" thread.

I made this same comment and got shredded for it. I like Dorsey's eye for talent, but as a negotiator... I'm not impressed with the contracts we handed out.
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Old 01-20-2014, 11:24 AM   #38
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I don't know if thats right. The signing bonus can be spread over the deal, but they're on the hook for 26 mil, not just 15.
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Old 01-20-2014, 11:31 AM   #39
jkw87 jkw87 is offline
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Originally Posted by chiefzilla1501 View Post
You should leave a comment in the "Dorsey wins Executive of the Year" thread.

I made this same comment and got shredded for it. I like Dorsey's eye for talent, but as a negotiator... I'm not impressed with the contracts we handed out.
I'm hoping the contract issues is just a learning curve with him...
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Old 01-20-2014, 11:32 AM   #40
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I don't know if thats right. The signing bonus can be spread over the deal, but they're on the hook for 26 mil, not just 15.
Bowe's contract shows how tricky contracts have become to interpret. I just read into his contract and have to retract my original post. Some base salary money is now becoming guaranteed (I didn't realize that was happening).

Essentially... Bowe is guaranteed $20M. It's pretty much a given that because of the huge cap implications of cutting him in year 2, the remaining $6M are pretty much guaranteed too.
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Old 01-20-2014, 11:34 AM   #41
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I don't know if thats right. The signing bonus can be spread over the deal, but they're on the hook for 26 mil, not just 15.
His 2013 base salary counts against the 2013 cap. His 2014 base salary counts against the 2014 cap.

His signing bonus is prorated against the cap, so it counts $3M against the cap each of the contact's 5 years.

If he plays all 5 years, the signing bonus never counts more than $3M against the cap in any given year. However, if he is cut at any point, the remaining un-accounted for portion of that signing bonus is accelerated to count against that year's cap.

So if they cut him after year 3, there's no salary to account for against the cap. and the remainder of his signing bonus would count $9M against the cap. His base salary is not guaranteed, so the Chiefs would save a couple million against the cap by cutting him.
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Old 01-20-2014, 11:36 AM   #42
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Thats why I was thinking he'd be a candidate to be cut after 14 if he doesn't have a good year.
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Old 01-20-2014, 11:38 AM   #43
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Bowe's contract in guarantees:
(I am editing based on realizing that $1.5M is guaranteed in 2015)

GUARANTEED TODAY
YEAR 1: $15M signing bonus + $750K salary
YEAR 2: $4.25M of his base salary
YEAR 3: $1.5M

GUARANTEED IN 2014... conditionally
YEAR 2: $4.5M if he has a mostly healthy year in 2014

Within there, there are $250,000 in workout bonuses per year... which are pretty much guaranteed too.

There's your $26M guaranteed.
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Old 01-20-2014, 11:39 AM   #44
htismaqe htismaqe is offline
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Originally Posted by O.city View Post
Thats why I was thinking he'd be a candidate to be cut after 14 if he doesn't have a good year.
If they cut him after 2014, there's $1.75M of base 2015 salary guaranteed plus the remainder of his signing bonus ($9M).

I would imagine it's no coincidence that his 2015 base salary equals exactly $10.75M. The net savings would be his $250K workout bonus.
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Old 01-20-2014, 11:40 AM   #45
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Originally Posted by htismaqe View Post
If they cut him after 2014, there's $1.75M of base 2015 salary guaranteed plus the remainder of his signing bonus ($9M).

I would imagine it's no coincidence that his 2015 base salary equals exactly $10.75M. The net savings would be his $250K workout bonus.
So you'd only save 250K cutting him then?
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