Aldon Smith Restructures Contract with 49ers

In a somewhat interesting salary cap move, 49ers pass rusher Aldon Smith has restructured his one year contract to essentially remove the guarantee from the deal according to Matt Maiocco. According to Maiocco Smith will receive a $2 million roster bonus in April  (likely April 1) and then roster bonuses paid out through the season. Smith’s $9.754 million salary was currently guaranteed for injury and would become fully guaranteed on March 10, now most of the salary is not guaranteed. Sounds strange, right?  Lets speculate a bit.

Smith’s demons off the field are well known and he has spent signifiant time on the non football illness list and suspended list the last two seasons. During that period his performance has slipped somewhat as well. In Smith’s first two seasons in the NFL he combined to sack the quarterback 1.05 times per game. In the last two seasons that ratio has fallen to 0.58.

Though he does have immense talent both things combined might be enough for him to consider his current earning potential if released. It is possible that in order to earn the same salary as he was scheduled with the 49ers he may have to give up years of free agency in incentive laden contracts. This allows him to play out free agency like planned and hopefully have a strong season with no off the field transgressions that should get him into the $14M per year discussions. The 49ers are also the team most likely to extend him so playing ball with the team on a contract only helps the relationship.

Now before we go off the deep end with Smith giving up guarantees it is quite possible that the contract is essentially virtually guarateed. The April 1 payment is likely guaranteed, at the least for skill and injury.  His P5 I would imagine is also guaranteed. For the sake of argument lets assume his new salary is $754,000 and his per game roster bonuses are paid out in installments of $437,500 per week ($7 million total). That $7 million is not guaranteed but it likley has a very high likelihood of being earned.

Normally we associate those bonuses as requiring being active on Sunday, but that is not always the case. It is not uncommon for per game bonuses to include payment to a player for being on injured reserve or the PUP list. So in that respect they can be identical to salary. I would imagine that the negotiation will not pay him for games in which he lands on the NFI or Suspended/Exempt lists, which is basically the same as what would have happened if he had another off the field issue (base salary is not paid on those lists either, regardless of guaranteed status). So as long as he makes it through the summer he is likely going to end up paid the same as before.

So what’s in this for San Francisco then?  Mainly salary cap relief. Per game roster bonuses are valued against the salary cap based on the players performance last season. Smith was only active for 7 games last season so using our hypothetical example Smith’s salary cap figure drops from $9.754 million to $5.8165 million, savings of nearly $4 million in immediate salary cap relief for the cap hungry 49ers.

There is a catch, however. That hidden money that is not counted against the salary cap now will need to be accouned for on a weekly basis during the season if earned, which should be pretty likely. So while it gives temporary relief the team still needs the space to account for it in the regular season. What that tells me is that the 49ers front office is strongly considering using the June 1 cut on one of their players.

The way a June 1 cut works is the player designated a June 1 cut will have his cap charge count in full until June 1 and then on June 2 only his current year’s proration will count against the cap with the remaining acceleration hitting the following year. This gives no cap relief for free agency but helps for in season cap management.

If we look at a player like Ahmad Brooks, cutting him now provides San Francisco with just $1.5M in cap relief, which isnt a very big help for free agency. If they designate him a June 1 they will gain $4.7 million for 2015, which more than offsets those roster bonuses being earned by Smith.

While I have no idea if that is the team’s intention it is the way I would look at this deal. Reworking Smith gives me the immediate cap relief right now for free agency and then a player like Brooks pays it back in June. Its a creative way to get some extra cap dollars to spend in free agency while remaining in full compliance with the cap.

Saints Begin Restructuring with Jairus Byrd

The New Orleans Saints have begun the process of becoming salary cap compliant by restructuring the contract of Jairus Byrd according to Evan Woodbery of Nola.com… Byrd converted his $6 million roster bonus into a signing bonus, creating $4.8 million in cap space and further pushing charges to the future.

I am a bit surprised by the move because Byrd has now missed 17 games in the last two seasons and should be the type of player that the Saints be more cautious about investing more in. The Saints had already paid Byrd an $11 million signing bonus in 2014 in order to create an artificially low salary cap charge to fit him within their very limited cap situation. Now the team will $17 million in prorated money invested in the safety.

Byrd’s cap charge for the 2015 season is now just $5.5 million. Because of the large bonuses that figure jumps next season to $10.9 million, a larger figure than Bryd’s first two years combined. His dead money in 2017 will now jump to $8 million, virtually insuring Byrd of a spot on the roster through that season.  The Saints need him to be both healthy and productive for this restructure to pay off.

The Saints, who will release Pierre Thomas (about $1.7M in savings) and likely release Curtis Lofton ($4.3M in savings) , still have a long way to go to get under the 2015 salary cap limit by next week’s start of free agency. The team also has the worst cap situation in the NFL in 2016 and that will grow infinitely worse if they continue to push more money into the future for veteran players.

Vikings Trade Matt Cassel to the Bills

The Bills makeover continues. Just one day after agreeing to a trade with the Eagles for running back LeSean McCoy they are back in the trade market, this time acquiring quarterback Matt Cassel from the Minnesota Vikings.

Cassel will carry a $4.75 million cap charge for the Bills this season. He is due a $500,000 roster bonus on March 17 and can earn up to $1.25 million in incentives. Unlike what I speculated about McCoy, I do not believe the Bills would even consider extending Cassel.

Cassel is kind of an odd choice for the Bills, but I guess it indicates that they did not see a better option in free agency where they would have likely taken a run at either Mark Sanchez or Matt Moore.  The last time Cassel started more than 9 games in a season was 2010, so it is hard to picture Cassel lasting in a starting role for the Bills either. The Bills had looked at Josh McCown, but he selected the Browns, who offered a three year contract.

Given the trade for McCoy and money the team will likely need to spend on the offensive line the Bills may have decided that a lower cost, one year contract was better than having to get into a two or three year one with those players mentioned above.

Minnesota, who I believe is a darkhorse team to be surprisingly active in free agency, creates an additional $4.75M in space with the trade. They have a lot more money they can free up by working with the deals of Chad Greenway, Greg Jennings, and Adrian Peterson.

Eagles to Trade McCoy to Bills for Alonso

According to ESPN’s Adam Schefter, the Philadelphia Eagles, who seem to be in the midst of a firesale, have agreed to trade star running back LeSean McCoy to the Buffalo Bills in exchange for linebacker Kiko Alonso.

This move is a major win for the Eagles. McCoy was set to count against the Eagles cap at $11.95 million while earning a $10.25 million salary. Neither number should ever occur for a running back in today’s NFL and it is possible that McCoy would have been released had he refused a pay cut. If the Eagles had released him they would have owed McCoy $1 million, the amount of his salary that was guaranteed for the year. Instead they get a young linebacker in return who will earn $795,946 for the season. This will clear about $7.75 million from the Eagles salary cap this season.

For the Bills they will now take on $10.25 million in cap and cash obligations for McCoy, essentially eating up 1/3 of their projected cap room. One would expect the Bills to immediately rework his contract for more cap relief. McCoy has three years remaining on his contract. He will earn a total of $15 million in the final two years of his contract, though none of that is guaranteed. I would expect the team to add two more seasons to the deal to maximize the cap savings.

It is a large price to pay for a running back especially one who struggled at times in two of the last three seasons when his offensive line played poorly. The Bills offensive line is a trouble spot for the team and they will need to upgrade significantly to make this work. The Bills declined usin the franchise tag on pass rusher Jerry Hughes, which may have been an indication that the money was needed for the offense. The team already signed Richie Incognito to play guard, but arguably need three more lineman to allow the running game to excel.

The move will likely mark the end of CJ Spillers career with the Bills and could spell the end of veteran Fred Jackson’s. Releasing Jackson would save the team $2.7M in cap room. Spiller is a free agent.

No trade can be made official until the first day of the NFL League Year so its possible that the trade could never happen if someone gets cold feet, but it sure sounds like it will happen.  The Eagles will have well over $40 million in cap space to use to improve the team and should be expected to be a big player in free agency.

Cowboys Sign Cole Beasley

Per Rand Getlin the C0wboys have extended receiver Cole Beasley to a 4 year extension worth $13.6 million. 

Beasely was set to be a restricted free agent in 2015 and most assumed the Cowboys would have placed the second round tender on him, which would cost the team $2.356 million against the cap. An extension can provide a win-win for both sides as Dallas can account for the contract favorably against their cap while Beasley will earn more money than he would have on the tag.

According to the report Beasley received a $4 million signing bonus and I would assume the minimum salary of $660,000. That would make his first year cap charge $1.66 million, a savings of about $700,000 which can come in handy for a team that is not flush with cap space. If that estimate is correct then his second year cap charge should be $3.34 million.

The $3.4 million annual value on the deal comes in just under Jeremy Kerley’s recent extension with the Jets at 4 years and $16 million.  Both contracts contain incentives that can increase the value and its likely that Beasley’s contract was modeled somewhat after Kerley’s. We’ll update Beasley’s cap page whenever we receive more details on the contract.

Jay Cutler Benched

I’ve posted many times here on how overvalued Jay Cutler has been and now according to Adam Scheffter of ESPN he has been benched for his poor play.

The move marks yet another chapter in the Cutler contract saga that has been heavily debated since it was signed last year. It was a contract that came under a great deal of scrutiny due to the high guarantees given to someone who at best could be described as inconsistent but talented. The questions really should have started long before the deal was ever signed as the Bears somewhat dragged their feet on the deal possibly costing millions in the process.

The Bears had all of 2013 to work out  contract with Cutler. Had they signed him to an extension that year they could have guaranteed his $8.47 million salary, which was already virtually guaranteed since he was going to be their starter. Rather than taking a proactive approach  they waited out the 2013 season one in which some argued he was outplayed by Josh McCown. Cutler missed 5 games that year and what Cutler did in those 11 games to take the question marks out of the process is a mystery. It seemed logical that Chicago would use the $16.2 million franchise tag to protect their long term security but instead they rapidly signed him to  a contract in January that would pay him $22.5 million in 2014 and guarantee him another $15.5 million in 2015.

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Now the decision for the Bears becomes what to do with Cutler and his massive contract. Their best option is to try to find a team willing to take a chance on Cutler. His salary in 2015 is $15.5 million which is probaby low enough for  team to take a gamble on him, but the problem is that a team trading for him would also assume what is likely to be $16 million in guarantees in 2016 as well.  For a player who has been a 3rd tier performer and is often injured that may be too much risk.

Trading Cutler leaves the Bears with just a $4 million dead money hit on their salary cap and would create $12.5 million in cap space in 2015. Cutler’s contract contains dead money because the Bears converted a portion of his base salary to a signing bonus to aid them in signing Jared Allen.  If he remains in Chicago he will carry a $16.5 million cap hit in 2015 and $17 million cap hit in 2016. The 2016 number would be completely wiped from the books.

Cutting Cutler is not really an option. If they release him the Bears will still need to pay him $15.5 million.  In addition his bonus money would accelerate, leaving Chicago with a $19.5 million cap charge. That cap charge would result in a loss of $3 million in cap room. If they were to consider it they would need to release him in early March. On the 3rd day of the 2015 League Year $10 million of Cutler’s $16 million salary in 2016 becomes fully guaranteed.

The most realistic option might be a common ground trade settlement where the Bears would either pay a portion of Cutlers contract to allievate the burden of guarantees in the contract to the acquiring team or agree to take on a bad contract in return. Such a scenario paints the best financial situation for any team involved.

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Looking at the Decisions Facing the Giants

I had talked about the Giants a bit on the podcast this week and then came across this piece on the Giants by Bart Hubbuchof the NYPost  and I thought it made an interesting topic to discuss here as well since this is clearly a team with big decisions to make.

It’s easy to find excuses for the 3-8 record the Giants currently have. The team does enough at times to make them think that they are just a few breaks away from turning their season around and being a playoff competitor. It is very easy to look back at the seasons results and say the Giants could have beaten Arizona, San Francisco, and Dallas (possibly twice).  Change the results of those games and 3-8 quickly turns to 6-5 or 7-4 in the blink of an eye.

They never had their expected started receivers really healthy at the same time. David Wilson was forced into retirement in the summer. Their starting running back, Rashad Jennings, got hurt just as the team really settled into an offensive groove. The team lost two key members of the secondary- Prince Amukamara and Walter Thurmond to season ending injuries. One of their big free agent acquisitions, Geoff Schwartz, missed almost of all the season due to injury. Their other prime free agent acquisition, Dominique Rodgers Cromartie, has nursed nagging injuries all year. Jon Beason, their starting middle linebacker in 2013, was injured in camp and was ineffective trying to play through the pain. It’s very easy to sit back and say this season was derailed before it even began.

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But the Giants also have to consider reality. When you go back to the Giants first “era” under head coach Tom Coughlin you have a team that won 11 games in 2005, 8 games in 2006, 10 games in 2007, and 12 games in 2008. Included in that stretch were two division titles, four playoff appearances, and, of course, the Super Bowl championship in 2007.

Since that time the Giants have made the playoffs just once and only once finished the season with at least 10 wins. Now the one playoff season was a huge success in 2011, culminating in another Super Bowl win, but the fact is the Giants have not improved at all since then.  Since winning the Super Bowl in 2011, they have won 9 games in 2012, 7 games in 2013 and are on pace for a 4 or 5 win season in 2014.

Here is what the record of the Giants looks like since Coughlin took over the team in 2004.

Giants Record

This pattern is the real problem facing the Giants. You look at those first years and it’s a team building towards something. They were a team that showed, over the long term, improvement. Their best team was probably not the one that won the Super Bowl, but it was a period of growth. Since then they have been stagnant over the regular season and now look to be in freefall.

Blinders in the NFL can lead to the downfall of an organization. The Giants at times seem so focused on 2011 that they don’t seem to realize that that season was an eternity ago in the NFL. Whatever fixes the Giants have tried to get back there have not worked. You can not fall back on excuses for 2012, 2013, and 2014. At some point you have to realize that chasing what worked then is probably not going to improve the team either now or in the future.

The Giants are not alone in this struggle in the NFL. The Jets for years chased a handful of successful seasons until they realized they had to just rip the team apart and begin again. New Orleans should be asking themselves the same questions that the Giants should be asking now. Philadelphia’s been down this road and so have countless other teams in the NFL.

The Giants are in one of the worst situations a team can find themselves in. They have the two time Super Bowl winning coach and quarterback, but neither of late has looked to be anywhere near that level anymore. Both are essentially going to enter lame duck periods with the organization and the decisions with those two will likely shape the direction the franchise goes in. The decision on the QB is the one that shapes the roster of the team going forward and no matter what the decisions will be criticized.

I’ve been an Eli Manning fan and I think he often gets criticized harshly because of where he was drafted and why he was drafted there. But Manning is not the kind of player who is going to put a below average team on his back and carry them to greatness. What the Giants need to ask is whether he can still play a very important role on a decent team and how long he can play that role for. Let’s look at the options ahead:

A Free Agent Frenzy

The Giants are not a team that seems to be an N’damukong Suh away from a deep playoff run. They need a new left tackle. They need a better running game. They need better pass rushers and more consistent play from the secondary. Even Victor Cruz has to be a major question mark after finishing the last two years on IR.  Fixing the team for 2015 seems to be a difficult task, one that could cost tens of millions of dollars in free agency and end up blowing the Giants up for the next 4 years if things go poorly. But if the Giants don’t believe in the viability of Manning to grow with a younger team and need to keep him, this is the path they must take.

The Giants salary cap position isn’t bad going into 2015, but I don’t think you would call it great either.  My estimates have the Giants going into next season with a ballpark number of $24 million in cap room, assuming a $144 million cap, which roughly means $18 million in cap to spend. They can create more space by releasing players like Beason and Mathias Kiwanuka, but they also have Jason Pierre-Paul and Antrel Rolle coming up as free agents.

With all the holes the Giants have on the roster it really requires an extension of Manning to make it feasible. And once you extend Manning can you really let a player like Pierre-Paul walk? Probably not, even though JPP will likely clog the Giants cap for years to come and never bring them value at whatever cost his extension comes in at. You look at free agency and see Suh, maybe a DeMarco Murray, Julius Thomas, and so on. You have to reach for the stars and hope they all align because if they don’t you become the Oakland Raiders of a few years ago.

And at what cost can you extend Manning?  With the QB position being such a premier pay position, a two time Super Bowl winner is going to cost a great deal if he ever hits free agency. A team like the Rams or even the Giants stadium partners would jump all over him. Manning is not going to sign some Andy Dalton incentive laden, $16 million a year contract. He is going to want big money and should be content to wait until his draft cohort of Ben Roethlisberger and Phillip Rivers get theirs to give him a minimum acceptable level.

Because you have to make the numbers work with the salary cap this is going to likely lead to a very player friendly deal. If Manning continues to be an interception machine or the team plays poorly he is going be a cap killer under this plan and likely be a sticking point when it comes to bringing any new coaches on in the future.

 End The Manning Era

Some might say that this is the time to trade Manning away because of all these factors, and I can understand that line of thinking, but it would rely on the team having the ability to draft a quarterback in the first round. Otherwise what benefit would they have?  They just drafted a terrific wide receiver whose talents will be lost playing with a journeyman level quarterback. They will then be stuck with a bunch of failed free agents they signed this year and some additional draft picks while Ryan Nassib plays QB in what will be a lost 2015. When you charge the prices the Giants charge for tickets it is very hard to sell that to your fanbase, unless you get an absolute haul in a trade. If the Giants are willing to go this path it means Manning and Coughlin will both be gone, but GM Jerry Reese could remain long term if he was given the green light to do this.

Stay the Course

The third option is to just play it out next year. Bring back the coach and the QB, but don’t touch the contracts. This is probably the most likely scenario for the team given the Giants recent history. Under this scenario you probably bring back Rolle but let JPP walk in free agency, because he is too risky long term. The team will pinpoint one or two free agents and keep their fingers crossed that the injury excuse works and the rest of the team is healthy and productive in 2015.

The most likely outcome is that the team continues to struggle, but the Giants can get whatever additional confirmation that they need that they should blow the team up in 2016. Since they didn’t extend Manning they can hit the exit switch and move on to their next era of football. Manning becomes a free agent and the Giants can release the players signed in 2014 with little cap implications. Those signed next year you are stuck with, but that should not be a major negative moving forward.

This ties Manning, Coughlin, and Reese together for one more season, with all three going if it fails. A new GM would likely use the franchise tag on Manning, despite the cost, in an effort to trade Manning and get something back in return in 2016 rather than having him walk for nothing. So they don’t really lose the trade benefit completely if they do this.

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Build Young Around Manning

This is the scenario where the Giants realize that the free agent fixes haven’t worked for them for years and need to change their approach by building through the draft and looking for a long term solution. The Giants have to believe, under this scenario, that Manning has a long career ahead of him and can be viable three and four years down the line as a group of youngsters hit their prime.

Manning would also be extended in this case, but under very different terms than the extension talked about in the free agent plan. The GM doesn’t care about the cap in the present since free agency isn’t a priority and can design a frontloaded contract where the Giants take the brunt of the salary cap hits on a massive contract early so that they have cap flexibility two-three years down the line when they are ready to make the moves to supplement the youth they bring in.

That doesn’t completely nullify 2015 as they can try to get by with the players they recently signed, but would likely avoid bringing back Pierre-Paul and Rolle. In fact they would essentially disregard free agency entirely in 2015 outside a few players here and there that can sign shorter term deals. The type of contract that Manning would sign would likely still leave the emergency exit door open in the future if the draft picks fail and/or Manning fails, so it is not a cap or roster killer.

This plan likely means the end of Coughlin unless they think he does have another 3 or 4 years in him, but keeps the other two in place no matter what.

So what path would you take if you were a Giants fan or in charge of running the team?  It’s a big decision. I definitely would not extend Manning at this point and I don’t believe a free agent splash is going to amount to anything either. I’d probably lean towards staying the course, not because I believe that it will work, I just think it’s the best option for the team as constituted.

I’m pretty certain I’m not keeping Manning long term, but Ill keep the window slightly ajar in case something radical changes next season. I won’t damage the long term health of the team moving forward with that plan as I would others and I’ll make certain my team as a pulse at QB in 2015, because I know if I go to the alterative on my team I’m just throwing the season away, possibly for no good reason.

It’s almost a no-win scenario for the Giants. If they do nothing in the offseason they are going to get killed for throwing in the towel on a team that some think are a few pieces away. If they go crazy in free agency people will kill them for overspending on a team that is closer to the Buccaneers than the Broncos.

It’s probably the type of situation where the only way to make a majority of people pleased with the direction is to hire a new GM who will have a honeymoon period to remold the roster. I would not expect a new GM next season so Id anticipate the Giants having many months of listening to second guessing the decision making process and hoping that the regular season proves them right for doing whatever they decide to do.

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