"Restructuring" Mario's Contract

[Rob's House]

Can someone who really understands how the cap works with regards to this issue explain specifically how Mario's contract can be "restructured" to save cap space?

 

To clarify, I'm not asking for a vague assessment of how other players have restructured. I'm asking how you restructure a guy with only two years on his contract structured as his is.

 

http://www.buffalorumblings.com/2012/3/17/2880629/mario-williams-contract-breakdown-buffalo-bills

 

2016: $15.3 million. Here is what Williams can earn in the fifth year of the deal:

$11.5 million base salary

$2.5 million roster bonus

$500,000 workout bonus

$400,000 Pro Bowl escalator

$400,000 in additional, undefined escalators

 

 

2017: $14.9 million. Here is what Williams can earn in the sixth and final year of the deal:

$11.4 million base salary

$3.5 million roster bonus

http://www.spotrac.com/nfl/buffalo-bills/mario-williams/

[Deranged Rhino]

You extend him first.

[Ed_Formerly_of_Roch]

Add say another one or two years to it and maybe $5 mil per year added so now it becomes a total of $35 to $40 mil spread over 3 to 4 years. You convert his base salary which for the next two years around $11mil per year to a signing bonus. Give im a $10 mil signing bonus and a base salary next year of say $4mil.

 

Why would Mario agree to it, if he doesn't he may be cut, then needs to get another team to pay him $30 mil over the next couple of years. If he really thinks he can, he won't agree to an extension, but if he's not certain he does get that kind of contract he agrees to the re-structure. Seems teams are smart enough to know the numbers needed to get the player to agree to it as more often they do. On the other hand, likely the ones who don't agree are the ones cut each February.

[NoSaint]

The basic restructure that most tout makes little sense with him currently. Shifting money from 19m into 16m provides almost no flexibility but creates dead money.

 

Extending him would give you time to amortize a signing bonus over 4-5 years but it's going to be a big deal and push dead money into his mid 30s.

 

He's not a guy that is a great candidate unless he's willing to take a much cheaper deal than he's currently on.

 

I'd let him play this year, and 2016 then make a longer term decision the next year but not under the illusion of creating much if any space/flexibility

Edited November 8, 2015 by NoSaint

[pepsicat17]

Why would he want to stay in a defense that doesn't use his abilities to the fullest?

[BarleyNY]

You extend him first.

No. You have to extend him as part of - not prior to - the restructure. In general restructures just shift some of a player's current year cap charges to future years. The typical way to do this is to convert a portion of the player's salary and/or roster and workout bonuses to a signing bonus. The player is happy because he gets his money a little earlier than he would have. The team is happy because they delay their cap hit.

 

Clay is a good example. He has a $10M roster bonus due in the offseason. That will all count toward the 2016 cap if left in place. But it won't be. It was just done that way to keep Miami from matching his deal. They will restructure it to a roster bonus, which is amortized over the rest of the contract (up to 5 years or the end of the CBA). He has 4 years after this one on his deal so the cap hits will be $2.5M in each year from 2016-2019 instead of $10M in 2016. That clears $7.5M in 2016 and adds $2.5M to seasons 2017-2019.

 

To free up any worthwhile amount of cap space for any significant amount of time from Mario's contract he'd have to have some years added. How long he is expected to be a highly productive is of paramount importance because if he is released, retires, or is traded any unaccounted for signing bonus dollars get accelerated into the current year (or the following year if after June 15th).

 

This offseason Mario and the Bills could, for example, agree to a 2 year extension (through 2019) and convert his whole $2.5M roster bonus and $9.5M of his salary ($12M total) to a signing bonus. That would spread out the $12M cap hit in 2016 to four $3M cap hits in each season from 2016-2019. His 2016 cap hit would be reduced by $9M, but his cap hit in 2017 would increase by $3M and hed also have additional $3M cap hits in 2018 and 2019.

 

In short, there's no free lunch but you can defer the cap hit. An argument for deferring cap hits is that the cap almost always rises so taking a hit in future years will take up a proportionately lower percentage of the overall space. The big arguments against it are that sometimes players will lack motivation after they get one big payday and then a relatively small salary especially if the restructure makes it difficult for the team to cut or trade them. That's the second argument against it - it can really create issues if a player becomes a big off the field problem, gets suspended or retires unexpectedly due to injury. New Orleans is going through this now.

Edited November 9, 2015 by BarleyNY

[Dorkington]

Hopefully we draft a stud DE, so we don't need to worry about it

[Max997]

Mario still plays for the Bills?

 

It's pretty easy, extend life of contract and convert salary to signing bonus which can then be spread out across life of contract. Say his salary is 20 mil next year with two years left, add three years and convert that 20 to signing bonus spreading out over 5 years creating cap hit of 4 mil from bonus plus whatever his salary would now be which even if 6 mil would make is cap hit 10 mil roughly

 

That's pretty high level so not exact but basically how it works

 

Mario either restructures or he's gone IMO....just not worth it anymore considering he's third best player in front seven

Edited November 8, 2015 by Max997

[NoSaint]

Mario still plays for the Bills?

 

It's pretty easy, extend life of contract and convert salary to signing bonus which can then be spread out across life of contract. Say his salary is 20 mil next year with two years left, add three years and convert that 20 to signing bonus spreading out over 5 years creating cap hit of 4 mil from bonus plus whatever his salary would now be which even if 6 mil would make is cap hit 10 mil roughly

 

That's pretty high level so not exact but basically how it works

 

 

Mario either restructured or he's gone IMO....just not worth it anymore considering he's prob third best player in front seven

Third?

[Max997]

Third?

I'd put Marcel and Hughes ahead of him, not sure I'd put anyone else at this point bc who else is there

 

I like Preston Brown but I think he was better on the outside

Edited November 8, 2015 by Max997

[Deranged Rhino]

I'd put Marcel and Hughes ahead of him, not sure I'd put anyone else at this point bc who else is there

I like Preston Brown but I think he was better on the outside

I like Hughes -- there's no way he's been as consistent or as good as Mario this year.

[Max997]

I like Hughes -- there's no way he's been as consistent or as good as Mario this year.

No one on this defensive front 7 has been consistent this year

Edited November 8, 2015 by Max997

[Deranged Rhino]

No one on this defensive front 7 has been consistent this year

Don't confuse numbers with consistency. Watch the all 22s. The film doesn't lie. For what he's being asked to do Mario has played very well. No way he's the 3rd best guy on the line. No way.