Quote:
Originally Posted by chiefzilla1501
(Post 10544917)
Every single dollar of a signing bonus counts against the salary cap. Name me a single dollar that doesn't.
The only true definition of whether a team is cheap or not is how far below the salary cap they end up. As of right now, the Dorsey era is probably going to spend back-to-back-to-back years right up against the salary cap max. So again, this isn't about being cheap. Argue all you want that they spent way too much on ineffective players. I'll agree with you. Argue all you want that you think the Chiefs should spent a shitload upfront today on "credit" versus waiting until money naturally becomes available to spend. I would disagree with you, but think you have an interesting point.
But arguing that a team that bumps up against the salary cap max isn't spending money on players is flat out inaccruate.
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Handing out a big signing bonus almost always leads to more guaranteed money (and increases the team's "true cash" payroll for that year).
Yes, the signing bonus still counts against the cap... but adding more money to the bonus allows you to be more creative as a team to create cap space in years you need it while still speading the cost out over the rest of the contract.
It just costs a little bit more up front. And when you cut a player (or negotiate a new contract) in the last few years of that deal (which is general practice), you save less actual money (though the cap savings are the same) because you gave more of it in a signing bonus on the front end.
Contract A: 5 years, $50 million ($15 million signing bonus)
1: $5 million (cap hit $8 million)
2: $6 million (cap hit $9 million)
3: $6 million (cap hit $9 million)
4: $8 million (cap hit $11 million)
5: $10 million (cap hit $13 million)
Contract B: 5 years, $50 million ($5 million bonus)
1: $7 million ($8 million)
2: $8 million ($9 million)
3: $8 million ($9 million)
4: $10 million ($11 million)
5: $12 million ($13 million)
In these cases the contract value and dollars and cap hits work out the exact same way. In both cases, you've got a player who is a good candidate for a cut after year 3. In Contract A, you will have paid said player $32 million. In Contract B, you will have paid said player $28 million ( saving $4 million in cash).
The bigger the bonuses, the more that difference grows. For example, if you bumped Contract A's signing bonus out to $20 million (and subtracted $1 million from each year's actual salary to balance the extra $5 million bonus out while leaving the cap hit the same), you would have paid the player $34 million by the time you hit year 4, the obvious cut/renegotiate year.