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

[Cheektowaga Chad]

4 minutes ago, YattaOkasan said:

Are there any examples of that type of contract structuring happening.

My understanding is it would really be like the diggs restructure, where the bills would convert a portion to a signing bonus and be able to spread it out over the remaining years he would be under contract 

 

Edited June 1, 2021 by Cheektowaga Chad

[Hapless Bills Fan]

1 hour ago, Virgil said:

I’m not disagreeing, but is there any downside for him in doing this?

 

This benefits him too because he’s get his whole salary right now, minus the min.  
 

Unless I’m missing something?

It’s possible it has some negative tax consequences, but it could be positive too.  Salary is divided into weekly checks taxed at the rate of the state the game is played in.  

I’m not sure how signing bonus is taxed.  Diggs may claim permanent residence in FL, no state income tax.  OTOH if it is taxed all at NYS rates because employer is in NYS, that would be higher than spreading it out over games in different states.

 

Overall it’s probably a good financial move for Diggs but just mildly.  The money is in his pocket now, so no chance of the NFI clause.

[ChronicAndKnuckles]

9 minutes ago, BuffaloBills1998 said:

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.

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. 

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

 

10 minutes ago, BuffaloBills1998 said:

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.

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. 

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

 

I agree that Sherman lost maybe half a step, but he's still a formidable corner. Down the road as he ages, I wonder if he'll convert to safety. I think he'd make a good one as he's a great ZONE player, ball-hawk, and physical.

 

What I don't agree w/ is your last paragraph. The Packers are pretty set at #1 receiver w/ Devante Adams who some would argue is the best in the league. Diggs had slightly more yards/receptions, but Adams had double the TD's.

 

Titans are more than set at #1 WR w/ AJ Brown. The only reason he doesn't put up even bigger #'s is due to the offense going through Derrick Henry. Put him on the emerging Chargers or Bengals and I see him putting up massive #'s.

 

Sure, Julio Jones would improve these teams because he's freaking Julio Jones, but the teams you listed aren't "starving" for a #1 guy. They're actually pretty set. 

 

[BuffaloBills1998]

5 minutes ago, ChronicAndKnuckles said:

 

 

I agree that Sherman lost maybe half a step, but he's still a formidable corner. Down the road as he ages, I wonder if he'll convert to safety. I think he'd make a good one as he's a great ZONE player, ball-hawk, and physical.

 

What I don't agree w/ is your last paragraph. The Packers are pretty set at #1 receiver w/ Devante Adams who some would argue is the best in the league. Diggs had slightly more yards/receptions, but Adams had double the TD's.

 

Titans are more than set at #1 WR w/ AJ Brown. The only reason he doesn't put up even bigger #'s is due to the offense going through Derrick Henry. Put him on the emerging Chargers or Bengals and I see him putting up massive #'s.

 

Sure, Julio Jones would improve these teams because he's freaking Julio Jones, but the teams you listed aren't "starving" for a #1 guy. They're actually pretty set. 

 

My argument on Green Bay was Rogers constant bitching about the WR position and that if they got Julio then that would shut Aaron up and he would most likely want to stay. Also who besides AJ brown do the Titans have on their WR corps?? Also it would give them good insight if Tannehill can get you to the next level. They overran Henry and it showed in the playoffs that he was worn out. 

[Buffalo_Stampede]

32 minutes ago, GunnerBill said:

 

He gave up 4 more TDs in 5 games in 2020 than he did in 15 games in 2019.

I don't know. He still looks sharp to me. I know Allen and Davis got him. I just love the fit. We play so much cover 3, that's what he lives on. 

Edited June 1, 2021 by Buffalo_Stampede

[Shaw66]

19 minutes ago, Cheektowaga Chad said:

I agree that this is likely an acquisition move but a move like this could be an Allen extension. This would allow the team to spread the QB cap hit out over an additional year which could end up being a slight net positive

I see. Thanks.

[Kwai San]

2 hours ago, Process said:

There is no difference in tax rate for a salary vs a bonus

 

 

If you say so - I know at my peon rate there is a HUGE difference between a lump sum bonus and a spread out salary.  But hey you know better than I.....

[Not at the table Karlos]

43 minutes ago, BuffaloBills1998 said:

Yeah but that’s all they have. If Julio went to Green Bay, that would be a dangerous offense. Also Rodgers is still bitching about wanting  another WR. I’m sure if they trade for him and get him, then Rodgers will go from wanting out to wanting to stay put and being happy

I agree that they need other weapons but you said they were starving for a no 1 wr. Adams and Brown are both 1s 

43 minutes ago, BuffaloBills1998 said:

 

 

Edited June 1, 2021 by Not at the table Karlos

[YoloinOhio]

1 hour ago, wppete said:

Just saw him at Elmo’s NGL

[Process]

14 minutes ago, Kwai San said:

 

If you say so - I know at my peon rate there is a HUGE difference between a lump sum bonus and a spread out salary.  But hey you know better than I.....

You are probably thinking of withholding

[Boxcar]

1 hour ago, ChronicAndKnuckles said:

 

I mean he didn't HAVE to agree to restructure his deal. How is that not good for the team?

It wasn't FOR the good of the team, necessarily. Diggs benefits from this. Of course this helps the team.

[Rochesterfan]

2 hours ago, Ethan in Portland said:

You asked if it had anything to do with Allen extension. And I answered. Allen’s new contract when it is done is an extension. It will have no impact on his salary in 2021. It’s how the CBA works for second contracts of draft picks. So the answer to your question, freeing up salary cap space in 2021 has nothing to do with Allen’s extension.

Although I agree - I don’t think it has anything to do with an Allen extension - freeing up Cap space in 2021 can roll into 2022 - giving additional space next year as part of the extension.

 

It also frees up space that can roll into next year and then additional restructuring can get even more next year and this might just be part 1.

[appoo]

This isn’t for Allen and Edmunds - those 22 hits and this actually makes it slightly harder.

 

my guess? Flexibility for the trade deadline. Bills don’t necessarily NEED to add a player but we know Bean is an active in season shopper, and 8M in cap space empowers him quite a bit 

8 minutes ago, Boxcar said:

It wasn't FOR the good of the team, necessarily. Diggs benefits from this. Of course this helps the team.

hes a bit underpaid but he probably did this knowing we’ll extend him after this season. Those 18M hits the next 2 years aren’t great. 
 

it’s always better to have money up front, I guess. 

[appoo]

To be clear, adding Julio would be a massive upgrade to this team. Diggs might be our #1, but the X WR - a traditional #1 is some combo of 33 year old Emmanuel Sanders and Gabe Davis. 
 

Diggs and Beasley are fantastic complementary pieces, but you add a legit star X or legit star at TE, that takes this group to entirely new frontier - and quite possibly unstoppable given Allen’s arm talent.

 

Imagine his deep shots with someone with the arm radius of Julio or Ertz? 
 

But Julio still isn’t possible without cutting 1-2 players 

[Chicken Boo]

4 hours ago, H2o said:

?????

 

If that were to somehow happen, barring injuries, get your Super Bowl plans together.

 

3 hours ago, Boxcar said:

I don't get why so many think this is for Julio. Ertz and Nelson are more important for the current team.

 

Depends on what you're going for.  The offense is near unstoppable with Julio Jones.

 

Neither Ertz or Nelson is going to have that kind of impact. 

Edited June 1, 2021 by Chicken Boo

[The Dean]

3 hours ago, Boxcar said:

People are interpreting the restructuring as Diggs doing something for the good of the team, which isn't really true.

 

If Diggs had a say in the matter, then it is absolutely good for the team to clear some cap for this year. The bill still comes due, but this isn't the best time for the Bills to pay that bill. If the Bills can now sign a CB/TE or re-up Josh, how can that not be good for the team?

[BillsMafi$]

 

[Ethan in Cleveland]

25 minutes ago, appoo said:

To be clear, adding Julio would be a massive upgrade to this team. Diggs might be our #1, but the X WR - a traditional #1 is some combo of 33 year old Emmanuel Sanders and Gabe Davis. 
 

Diggs and Beasley are fantastic complementary pieces, but you add a legit star X or legit star at TE, that takes this group to entirely new frontier - and quite possibly unstoppable given Allen’s arm talent.

 

Imagine his deep shots with someone with the arm radius of Julio or Ertz? 
 

But Julio still isn’t possible without cutting 1-2 players 

Julio is not happening. They don't have the cap space and they are not giving up a first round pick for a 32 year old WR. 

[ROCBillsBeliever]

3 hours ago, Blokestradamus said:

You have to make moves like this when you pay franchise long snapper money.

 

You, sir, have won the thread.

[Allen2D̶i̶g̶g̶s̶TBD]

This has to be to sign a newly cut player (or a trade for Ertz) and not for a Josh Extension. This move raises Diggs' cap hit for '22 which is the year that Allen's 5th year option and/or new contract money would take effect. I believe we get one starter out of the June cuts and extend Diggs next season to continuously keep his big cap hits on the horizon.

Edited June 1, 2021 by Allen2Diggs

[NEBranch]

OBL might've gotten to the real truth...this move is to pay off Star's "goodbye" cap hit.

[Beerball]

2 hours ago, Boxcar said:

Yeah, because Tyreek Hill is an idiot.

https://arrowheadaddict.com/2021/03/23/tyreek-hill-turns-restructured-contract-k-c-chiefs/
 

Hill likely turned down because of voidable years, but don’t let facts distract you.

[YoloinOhio]

9 minutes ago, NE Branch said:

OBL might've gotten to the real truth...this move is to pay off Star's "goodbye" cap hit.

[ganesh]

4 hours ago, ExWNYer said:

I hope it's the precursor to a Steven Nelson signing.

Is Nelson that good a player.  I mean he got creamed by Josh.

[ExWNYer]

Just now, ganesh said:

Is Nelson that good a player.  I mean he got creamed by Josh.

 

Yeah, he is. That's hardly a reflective sample size. Josh has and will continue to make many DBs look foolish going forward. 

[Trogdor]

4 hours ago, Boxcar said:

They just gave him his entire salary in one go. He didn't sacrifice anything.

 

Not to say Diggs is selfish or anything like that, but in this instance it is actually beneficial to the player.

I'm not sure this is 100% true. Players get taxed based off where the game is, so taking the whole salary in NY might cost quite a bit. Especially since they are guaranteed a game in Florida ever year. 

[John from Riverside]

20 minutes ago, ganesh said:

Is Nelson that good a player.  I mean he got creamed by Josh.

Everybody got cream by Josh he was the runner-up MVP

Edited June 1, 2021 by John from Riverside

[ChronicAndKnuckles]

1 hour ago, BuffaloBills1998 said:

My argument on Green Bay was Rogers constant bitching about the WR position and that if they got Julio then that would shut Aaron up and he would most likely want to stay. Also who besides AJ brown do the Titans have on their WR corps?? Also it would give them good insight if Tannehill can get you to the next level. They overran Henry and it showed in the playoffs that he was worn out. 

 

I agree that they don't have much outside of Brown. I forgot they lost Corey Davis to free agency. They would definitely benefit from Julio Jones as most teams would, but he's still a luxury for them and not an absolute necessity. Who knows who will step up? Kind of like Gabriel Davis w/ the Bills coming out of nowhere. Regardless, you can make the case that Jones could put them over the edge as a true Super Bowl threat too. This is my opinion of course and yours is just as good as mine.

 

I've never really been a fan of Aaron Rodgers' personality. If anything he should be complaining about defense, not offense. I can see exactly why they drafted Jordan Love as insurance. Tom Brady never complained about his receivers, he just made it happen w/ what he had. It's actually kind of a slap in the face to his teammates. 90% of the NFL would kill to have a #1 like Adams. But just like the Titans, the Pack would also dominate w/ Julio Jones and Adams as a 1A & 1B. It's a not an absolute need for them no matter how much Rodgers complains. It's going to cost them a lot. We'll see what happens.

[Matt_In_NH]

4 hours ago, Boxcar said:

People are interpreting the restructuring as Diggs doing something for the good of the team, which isn't really true.

Its a win win

[Kwai San]

1 hour ago, Process said:

You are probably thinking of withholding

 

Nope - I get a bonus, AKA Lump Sum payout, each year - sometimes 2x a year if lucky.....each time Unkle Same "helps" himself to 48% of that bonus, AKA Lump Sum payout.  My standard rate of pay each month - yeah I get paid monthly is taxed apropos of my tax bracket (forget the % right now).  This is why I say bonus, AKA Lump Sum is most likely taxed at the higher rate of 48%.  Now I do not make millions and millions a year so I am guessing you have/had knowledge of that bracket I am not privy too.  Based on your latest reply that doesn't seem to be the case however.

13 minutes ago, Trogdor said:

I'm not sure this is 100% true. Players get taxed based off where the game is, so taking the whole salary in NY might cost quite a bit. Especially since they are guaranteed a game in Florida ever year. 

 

 And this year 3 games in FL.  BUT - the Fed tax rate is what the Fed Tax rate is.  A different state doesn't change that.  State taxes will be ZERO here in FL whilst they will be what is it up too in NYS now 8%?

[BigDingus]

4 hours ago, Boxcar said:

They just gave him his entire salary in one go. He didn't sacrifice anything.

 

Not to say Diggs is selfish or anything like that, but in this instance it is actually beneficial to the player.

 

Technically this could backfire with a lesser, selfish player too. It won't happen with Diggs, he's too hungry, but someone else now could miss games and lose next to no money each week. 

 

Why worry about $58k game checks ($990k over 17 games) when you already got the other millions up front? Again, I have no belief Diggs would feign injury or something. 

[Process]

14 minutes ago, Kwai San said:

 

Nope - I get a bonus, AKA Lump Sum payout, each year - sometimes 2x a year if lucky.....each time Unkle Same "helps" himself to 48% of that bonus, AKA Lump Sum payout.  My standard rate of pay each month - yeah I get paid monthly is taxed apropos of my tax bracket (forget the % right now).  This is why I say bonus, AKA Lump Sum is most likely taxed at the higher rate of 48%.  Now I do not make millions and millions a year so I am guessing you have/had knowledge of that bracket I am not privy too.  Based on your latest reply that doesn't seem to be the case however.

 

 And this year 3 games in FL.  BUT - the Fed tax rate is what the Fed Tax rate is.  A different state doesn't change that.  State taxes will be ZERO here in FL whilst they will be what is it up too in NYS now 8%?

Lmao. This is not how taxes work. 

 

Salary and bonuses are not taxed differently, they are both wages, there is no difference. There is a difference in how much is withheld, or how much uncle Sam helps himself too from the payment that it made to you, as you would say.

 

If you have a salary of 20K and receive an 80K bonus, you will pay the same amount of tax as if you had a 80K salary and 20k bonus. 

 

Same goes for Stefon Diggs. 

 

Withholding is not tax.

[Motorin']

28 minutes ago, Trogdor said:

I'm not sure this is 100% true. Players get taxed based off where the game is, so taking the whole salary in NY might cost quite a bit. Especially since they are guaranteed a game in Florida ever year. 

 

 

If Diggs has a good financial advisor he can take that lump sum and beat the state income tax on the returns from the investment. 

[Kwai San]

5 minutes ago, Process said:

Lmao. This is not how taxes work. 

 

Salary and bonuses are not taxed differently, they are both wages, there is no difference. There is a difference in how much is withheld, or how much uncle Sam helps himself too from the payment that it made to you, as you would say.

 

If you have a salary of 20K and receive an 80K bonus, you will pay the same amount of tax as if you had a 80K salary and 20k bonus. 

 

Same goes for Stefon Diggs. 

 

Withholding is not tax.

 

I do stand corrected.....that does make sense.  All I do is hand a pile of papers to my tax guy and he does it....I just see the withholding each and every bonus check and freak......thanks for clearing that up for me.....I feel MUCH better.

 

Edited June 1, 2021 by Kwai San

[Virgil]

I feel like this moreso confirms that Diggs is going to get a restructured deal next season more than it does anything else.  
 

This money could be just for Greg and the just-in-case fund.  
 

I’m personally fine with our DB’s as they held up well last season.  Plus, our pass rush is supposed to be better, which makes them better.  
 

I’d also be more than fine with them getting Ertz

8 minutes ago, Process said:

Lmao. This is not how taxes work. 

 

Salary and bonuses are not taxed differently, they are both wages, there is no difference. There is a difference in how much is withheld, or how much uncle Sam helps himself too from the payment that it made to you, as you would say.

 

If you have a salary of 20K and receive an 80K bonus, you will pay the same amount of tax as if you had a 80K salary and 20k bonus. 

 

Same goes for Stefon Diggs. 

 

Withholding is not tax.

This isn’t true.  Bonuses are considered supplemental income and are taxed at a higher rate.  Some companies may not code it the right way, which is why you haven’t seen it.  
 

If you go to the IRS site, they break it down more.  
 

I used to get bonuses all the time and the tax rate was closer to 40-42%

[JGMcD2]

1 hour ago, appoo said:

Diggs and Beasley are fantastic complementary pieces

Do you mean that Diggs and Beasley compliment each other well or that they’re good complimentary pieces to another WR in an offense? 
 

Because if you’re telling me the WR who lead the NFL in catches and yards in the #2 ranked offense in the game is just a “complimentary piece” I’m going to have some questions…. 

Edited June 1, 2021 by JGMcD2

[Virgil]

4 minutes ago, Kwai San said:

 

I do stand corrected.....that does make sense.  All I do is hand a pile of papers to my tax guy and he does it....I just see the withholding each and every bonus check and freak......thanks for clearing that up for me.....I feel MUCH better.

 

Google “why do bonuses get taxed more”.  It’ll take you to the irs site that breaks it down 

[Process]

4 minutes ago, Kwai San said:

 

I do stand corrected.....that does make sense.  All I do is hand a pile of papers to my tax guy and he does it....I just see the withholding each and every bonus check and freak......thanks for clearing that up for me.....I feel MUCH better.

 

Right, it all gets worked out when you file your return. That's when tax is calculated on your income and if too much was withheld you get a refund, too little and you owe.

 

The withholding on bonuses is wonky. 

[716er]

Go after Jurrell Casey if he's healthy. A couple years removed from one of the best DTs in the league. 

[Magox]

Most likely the majority of those funds is to lock up Josh.