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Originally Posted by Coochie liquor
Still trying to understand the backloading of contracts. Does that just mean they’re pushing guaranteed money to future years, or is that non guaranteed money to make the contract seem bigger because of APY?
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Could mean a few things. Sometimes it’s to push the overall number higher so the deal looks better (ex. A top 5 LB contract). You’ll usually have high back years with little to nothing guaranteed in prorated dead cap.
Often times it’s just deferring because you don’t have the cap space in the front years. These are usually guaranteed or guaranteed in principle by dead cap (you’re not cutting a player with $80m in dead cap). Player would likely have guarantees on the back years.
Often times there’s a renegotiation trigger. For example, a huge number in year 3 of a 5 year deal. Usually low guarantees on the back years. It gives some small flexibility for the team to have an out on the contract. It also protects players from not getting paid less. If the player busts the team can just bite the bullet and pay the hump so the back years stay unguaranteed. Usually it means the team will turn base salary into signing bonus which spreads the cap hit longer. The back years are more guaranteed because it creates more dead cap. This might also come in a mid contract roster bonus where the player has way less leverage - unlike base salary the team can just refuse to exercise it