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Cap impact of retirement?


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OK, Joe B has an Athletic article speculating that Star might retire and talking about the horrid cap impact of his guaranteed salary & bonuses if he does

 

It’s my understanding that contract language guaranteed salary for injury, or for skill and injury, but salary is never guaranteed against retirement.

 

Also, it’s my understanding the team may ask for the amortized portion of the signing bonus that counts against future years to be returned

 

can anyone more knowledgeable confirm or deny?

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https://www.catscratchreader.com/2020/1/15/21066845/nfl-carolina-panthers-luke-kuechly-retirement-cap-space-2020-what-does-it-mean
 

looks like it’s same as a trade.  Don’t have to pay any guaranteed money that hasn’t already been paid.  Dead cap from bonus amortization hits in year of retirement.  
 

so if Star retired, he’d forfeit his $5m in guaranteed salary, but $5.2m of future bonus amortization would hit this year. So basically a wash cap wise if he retires, but clears cap space in future years.  

Edited by BuffaloRebound
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3 minutes ago, Art in RTP said:

BUT if he retires we could keep him on the roster til June 1st to spread the dead cap over 2 years . 

Yes, but then you gotta pay him the $250k roster bonus coming up.  But probably worth it to get an extra $3.9m in cap space this year.  

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5 minutes ago, Art in RTP said:

BUT if he retires we could keep him on the roster til June 1st to spread the dead cap over 2 years . 


True providing he’s willing to file the paperwork after June 1.

 

But even if the Bills don’t request repayment of his bonus, I think Joe B is mistaken that he gets his guaranteed salary this year if he hangs up his cleats

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3 minutes ago, Hapless Bills Fan said:


True providing he’s willing to file the paperwork after June 1.

 

But even if the Bills don’t request repayment of his bonus, I think Joe B is mistaken that he gets his guaranteed salary this year if he hangs up his cleats

Agree, with all of this.  And others above made good points.

 

So if Star is washed up, and who knows what shape he is in or his mindset, but him retiring might work in Bills favor financially.  

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I think it's about money already paid to the player that would have been accounted for in future years comes due at retirement. 

 

Otherwise, teams would have all sorts of money paid out to players that was never accounted for anywhere in the cap number. 

 

I still say that if the league allows op outs this year, and it is a negotiated deal between player and team as is being speculated, that the Bills ask Star to opt out this year and just pay him $500,000 or so and have next to no cap hit, then he can retire next season on June 1, splitting the dead cap between 2022 and 2023. 

 

Everyone wins... Star essentially is retired but gets an extra half million, and the Bills free up a big chunk of cap space. 

 

The only thing is that there might not be opt outs this season. 

Edited by TheFunPolice
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24 minutes ago, Hapless Bills Fan said:


True providing he’s willing to file the paperwork after June 1.

 

But even if the Bills don’t request repayment of his bonus, I think Joe B is mistaken that he gets his guaranteed salary this year if he hangs up his cleats

Yeah, it looks like the only option that saves them $ is a post-June 1 cut.  I was trying to find details on Brees' restructure, but can't figure out how reducing his base this year saved them money.  Doing the post-June cut does for sure.  By hook or by crook, Beane will find a way to save $ on this, if he does retire...

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4 minutes ago, TPS said:

Yeah, it looks like the only option that saves them $ is a post-June 1 cut.  I was trying to find details on Brees' restructure, but can't figure out how reducing his base this year saved them money.  Doing the post-June cut does for sure.  By hook or by crook, Beane will find a way to save $ on this, if he does retire...

A cut doesn’t save any money.  It actually makes things worse because they’re on the hook for $5m in salary guarantees this year and $2m next year plus $7.8m in bonus amortization.  A post June 1 retirement looks like best cap scenario because it both eliminates $7m in guaranteed salary and spreads the dead cap bonus amortization over 2 years.  Best case might actually be another opt out and then a post June 1 retirement in 2022.  

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1 hour ago, Hapless Bills Fan said:

OK, Joe B has an Athletic article speculating that Star might retire and talking about the horrid cap impact of his guaranteed salary & bonuses if he does

 

It’s my understanding that contract language guaranteed salary for injury, or for skill and injury, but salary is never guaranteed against retirement.

 

Also, it’s my understanding the team may ask for the amortized portion of the signing bonus that counts against future years to be returned

 

can anyone more knowledgeable confirm or deny?

 

 

 

 

The word "horrid," is nowhere in the article. That's entirely yours, and really isn't supported in the article. The only adjective used about the bonus in the article is, "additional," as in, "incurring an additional cap hit."

 

"The Bills would incur an additional cap charge of $4.7 million in 2021 if Lotulelei were to retire, which could inhibit some of their offseason moves or lead to another player release," is what Joe said, and is a very reasonable way of putting it.

 

 

 

 

It certainly does happen that teams go after signing bonus money from retirement. 

 

But it's not very common, particularly if the team likes the guy and thinks that he intended when he signed it to fulfill the contract.

 

It also sends a message to players that they don't like to hear. Right now people talk about the great culture and the happiness in the locker room. Moves like that affect that. Now, going after a guy like Vontae Davis (though Vontae very quickly voluntarily returned his bonus) is understood by the players if they go after that money. Star gave them two years of his absolute best. There's no indication that he had any fraudulent intent when he signed the contract.

 

It sends a message that can be read as anti-player. They still could do it but they don't have a history of it at all.

 

 

 

No particular reason to think Star will retire, though as Joe says, he certainly could. 

 

 

 

 

Edited by Thurman#1
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36 minutes ago, Hapless Bills Fan said:


True providing he’s willing to file the paperwork after June 1.

 

But even if the Bills don’t request repayment of his bonus, I think Joe B is mistaken that he gets his guaranteed salary this year if he hangs up his cleats

 

I think that the team can put him on the retired list and then release him after June 1 from that list which splits the money. Not 100% sure though.

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1 hour ago, Hapless Bills Fan said:

OK, Joe B has an Athletic article speculating that Star might retire and talking about the horrid cap impact of his guaranteed salary & bonuses if he does

 

It’s my understanding that contract language guaranteed salary for injury, or for skill and injury, but salary is never guaranteed against retirement.

 

Also, it’s my understanding the team may ask for the amortized portion of the signing bonus that counts against future years to be returned

 

can anyone more knowledgeable confirm or deny?

Seriously what a dirtball loser move if he does.... enjoy regretting your half-a career if you hang them up now.  Unless he has some personal stuff going on w/ family.  Ill never understand getting that far in a career and giving up 🤮

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24 minutes ago, TBBills said:

Who the ***** retires when the team is in a championship window...

 

If he does he will forever be known as garbage.

 

LOL   Or...a guy with a bunch of kids that he wants to spend time with...and he is already rich if he spends wisely...

 

But clearly he need to check with you prior to such a decision...because going down as "garbage" or "dirt ball loser" according to Florida Guy TBBills and Billsshredder ....I mean...can he live with that? 

Edited by TH3
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3 minutes ago, BillsShredder83 said:

Seriously what a dirtball loser move if he does.... enjoy regretting your half-a career if you hang them up now.  Unless he has some personal stuff going on w/ family.  Ill never understand getting that far in a career and giving up 🤮

Dude had a major heart issue unearthed at combine.  That’s why he fell to mid first round.  Id imagine Covid made him re-assess the risk of playing.  I’d take it easy on him if he decides to retire.  

Edited by BuffaloRebound
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25 minutes ago, BuffaloRebound said:

A cut doesn’t save any money.  It actually makes things worse because they’re on the hook for $5m in salary guarantees this year and $2m next year plus $7.8m in bonus amortization.  A post June 1 retirement looks like best cap scenario because it both eliminates $7m in guaranteed salary and spreads the dead cap bonus amortization over 2 years.  Best case might actually be another opt out and then a post June 1 retirement in 2022.  

Sorry, I meant it as post-June 1 retirement, since the discussion was about possible retirement. 

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34 minutes ago, BuffaloRebound said:

Dude had a major heart issue unearthed at combine.  That’s why he fell to mid first round.  Id imagine Covid made him re-assess the risk of playing.  I’d take it easy on him if he decides to retire.  

Ok fair enough didnt know that!  Retirement talk was giving me some Dareus vibes of being ok with just being ok.

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If Star is going to retire, a big IF for sure, they could get creative in this and work the cap a little, I believe.  Take his base salary of $4.5M this year and convert it to signing bonus.  That pays him and he goes away, he loses $500k for roster and work out this year, which goes back to the Bills.  So that makes his (pro rated) signing bonus from $7.8M left towards the cap and makes it $12.3M. You designate him a post June 1 cut, spreading the cap hit out over the next 2 years and you get a cap hit of $6.15M this year in dead cap.  Assuming he’s not a completely horrible person, maybe, just maybe, he agrees to concede his guaranteed salary for 2022 of $2.5M and you carry that goes away.  If not, the hit next year sucks too. 
 

So there’s ways to make it work, but either he is going to be here and be a $7.6M cap hit or AT BEST he goes away for a little over $6M dead cap. 
 

it’s not a good spot for the Bills to be in, but the contract was a terrible one when they signed it, so no feeling bad for them when they have to deal with it.

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1 hour ago, BillsShredder83 said:

Seriously what a dirtball loser move if he does.... enjoy regretting your half-a career if you hang them up now.  Unless he has some personal stuff going on w/ family.  Ill never understand getting that far in a career and giving up 🤮


Did you say that about Keuchly as well?  And Jake Locker?

41 minutes ago, DCofNC said:

If Star is going to retire, a big IF for sure, they could get creative in this and work the cap a little, I believe.  Take his base salary of $4.5M this year and convert it to signing bonus.  That pays him and he goes away, he loses $500k for roster and work out this year, which goes back to the Bills.  So that makes his (pro rated) signing bonus from $7.8M left towards the cap and makes it $12.3M. You designate him a post June 1 cut, spreading the cap hit out over the next 2 years and you get a cap hit of $6.15M this year in dead cap.  Assuming he’s not a completely horrible person, maybe, just maybe, he agrees to concede his guaranteed salary for 2022 of $2.5M and you carry that goes away.  If not, the hit next year sucks too. 
 

So there’s ways to make it work, but either he is going to be here and be a $7.6M cap hit or AT BEST he goes away for a little over $6M dead cap. 
 

it’s not a good spot for the Bills to be in, but the contract was a terrible one when they signed it, so no feeling bad for them when they have to deal with it.


The OP question is whether salary is guaranteed against retirement ? 
 

I think it is not.

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2 hours ago, Ridgewaycynic2013 said:

If we get him working at one of the concession stands, does that not count against the cap?

I would be very concerned about having a big, hungry D line guy like Star working at the concession stand and the impact it would have on profitability.

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13 minutes ago, billsfan89 said:

I think they would just IR him or cut him to avoid any major cap implications. Hoping he doesn’t retire as I would like to see this team have a true one tech.


cutting him has major cap implications

IR costs us a player and keeps his cap.

 

But this is really a thread to ask what the impact of retirement on guaranteed salary is?

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1 hour ago, I am the egg man said:

Not if they volunteer.

I'm just trying to creatively finding a way to minimize his impact on the salary cap.  Belichick inspired me with his rules 'interpretations'...😁

 

Edited by Ridgewaycynic2013
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1 hour ago, Hapless Bills Fan said:


Did you say that about Keuchly as well?  And Jake Locker?

 

I didnt know about the heart thing, i was careful enough to throw in a disclaimer as to look less dumb 😆.  Keuchly makes sense and living in Panther country Im happy hell have a better quality of life after football. As for Locker, going off memory, he just didnt love the game anymore, so a little bit yes.  I just cant picture getting that far and letting hard work make me question my decisions later in life.  You cant ever get that back

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3 hours ago, Hapless Bills Fan said:


Did you say that about Keuchly as well?  And Jake Locker?


The OP question is whether salary is guaranteed against retirement ? 
 

I think it is not.

Was talking to @Doc about this. Salary is guaranteed. But team could try to recoup the bonuses. This is tough though cause if star is concerned about the team trying to recoup the bonuses he could just show up and try to get cut (so the team can’t get the bonuses back). 

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6 hours ago, Hapless Bills Fan said:


True providing he’s willing to file the paperwork after June 1.

 

But even if the Bills don’t request repayment of his bonus, I think Joe B is mistaken that he gets his guaranteed salary this year if he hangs up his cleats

In an article about the Brees retirement, it is when the team files the paperwork not the announcement.

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