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Bills restructure Diggs contract; create 7.8. Mill in cap space


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22 minutes ago, SectionC3 said:

 

Depends on the tax code.  

Tax code for player checks if all bonus money is paid upfront will be based on nys tax code player checks are from the states where the game is re florida has no state income tax

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1 hour ago, Canadian Bills Fan said:

Love that Diggs agreed to do this.

 

Way to put the team first

Does this not put more $ in Diggs pocket getting in one lump sum upfront? Not so sure he deserves praise for it.

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18 minutes ago, Ethan in Portland said:

Actually it is the opposite. Yes the money is paid in full at the beginning of the year but the real risk is they cut the player the following year. Then all that prorated signing bonus money becomes dead cap space. That is how they lower the cap hit this year by spreading it over the next several years. 

I get that such a situation can look bad, but it’s not bad from a cap perspective as the two year hit is the same.  You might be pointing at a team using the extra space to overextend itself and that would definitely create problems.  The potential other issue I saw on the Steelers years ago.  They’ve been restructuring a lot of players like this for years.  Usually it’s worked out fine, but they have had players underperform (due to getting paid and phoning it in, getting off the juice, getting old, etc.) whom they couldn’t cut right away.

 

In general as long as a team is responsible it’s good to kick cap down to future years.  One benefit is that future cap hits are discounted by the percentage of the increase in cap.  Obviously 2020 threw a wrench in this, but for example if the cap rose a steady 5% per year then signing bonus hits would be discounted by 5% every year.  A $4M SB on a 4 year deal would show $1M each season, but due to the 5% annual cap increase they would be equivalent to $1M, $950k, $902.5k and $857.4K.  So you can see why teams love to utilize this to their advantage. 

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15 minutes ago, HOUSE said:

 

Spend spend spend  :w00t:

I don't know about you, but I want to win the Super Bowl.  Our corners couldn't cover the KC weapons last year.  They looked like JV players covering NFL stars.  

 

I believe that we can.....if we have 2 corners capable in man coverage.  As @Buffalo716 has pointed out, we play mostly man on 3rd downs. Winning 3rd downs = winning football games. Levi isn't a competent man corner.  Maybe Dane can be?  I have high hopes for him, but I certainly wouldn't want to risk our season on it.  Wildgoose?  doubtful.  We needed to become more competitive on the boundaries.  We didn't.  At this point, we have to hope that Mcd and frazier can come up with a plan to stop them...based on what we saw last year, wouldn't want to risk our season on that either

 

Regarding Ertz, I can take him or leave him.  He's a nice upgrade over Knox. I wouldn't really want to extend him long term, rather pay a 7th and hope he can help win us a SB in 21.  Trading for him wouldn't break the bank or have much of an impact on our future cap.

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1 hour ago, HappyDays said:

They wouldn't make this move for no reason, so there must be a signing or trade coming.

 

 

You would think so.........but it doesn't really change anything if they don't use all of the cap space in 2021..........they can just roll the unused cap room over anyway.

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1 minute ago, Boxcar said:

Yeah, because Tyreek Hill is an idiot.

Tyreek Hill is a horrible person and as selfish as they come. And yes, also an idiot.

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Just now, MJS said:

Tyreek Hill is a horrible person and as selfish as they come. And yes, also an idiot.

In this case, he isn't even being selfish. It's possible he THINKS he's being selfish, though, since he is a massive idiot.

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3 minutes ago, BADOLBILZ said:

 

 

You would think so.........but it doesn't really change anything if they don't use all of the cap space in 2021..........they can just roll the unused cap room over anyway.

 

They could have made this move at any time and are just choosing to do it now. That makes me think it means a move is coming. Probably not any of the moves anyone is predicting.

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1 hour ago, Conlan58 said:

I may be wrong, but I believe signing bonuses would be taxed at a higher rate rather than salary? Either way - restructuring is always a player doing the team a favor in my eyes. This is huge!

Its all taxed at the highest rate. We are talking about millions of dollars not a normal persons salary. 

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16 minutes ago, John from Riverside said:

It doesn’t seem like it would be enough money for Julio it might make sense for hertz

Agreed.  If they traded for Julio Jones, they would have to give him a new (big) contract... Diggs is going to need to get paid too... I just don't see Beane committing that much money to two receivers, especially, when one of them will be on the "wrong side" of 30 by the end of the contract.  Plus, the QB is going to be due for a pretty big contract....

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I could be wrong but I think some of you guys that want either Ertz or Julio are going to be disappointed. This restructure is most likely to make room for Allen and Edmunds extensions. Don’t be surprised or disappointed if Beane doesn’t go for either Ertz or Julio in a trade.

Just now, Buffalo_Stampede said:

Sherman is such a perfect fit for our defense. 

He lost a lot of steps last year in San Fran. I don’t know how much of an improvement he would be Vs who we already have on our roster. 

4 minutes ago, Buftex said:

Agreed.  If they traded for Julio Jones, they would have to give him a new (big) contract... Diggs is going to need to get paid too... I just don't see Beane committing that much money to two receivers, especially, when one of them will be on the "wrong side" of 30 by the end of the contract.  Plus, the QB is going to be due for a pretty big contract....

Julios best destination is either Green Bay or Tennessee. Both those teams are starving for a number 1 WR. 

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