Quote:
Originally Posted by duncan_idaho
In my example, the team IS saving $4 million (in the first example) or $6 million (in the second example, with the bigger bonus) over the course of the non-cut contract in guaranteed money, because of the bigger bonus.
That's a not-insignificant amount (12-18 percent).
It's a cap management issue, yes. But there's also (as htismaque pointed out) a risk aversion factor. And a savings in ultimate cash outlay.
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In the example you listed above, if you are spreading $15M over 5 years, you are essentially guaranteeing the contract for 4 years. It isn't until year 4 that the dead money becomes remotely reasonable and even then, to cut the guy you'd be paying $6M in dead money. In the second example, you have the flexibility to cut the guy loose. Restructuring a contract prematurely is the same deal (Berry is different, because his contract is actually in prime position for a restructure). You are creating a little more guarantee in future years of the contract. It's why a lot of teams don't rely on free agency as their primary offseason strategy.