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


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Just now, eball said:

 

 

Serious question...does accelerating his up front payment have tax implications for Diggs?  I mean, if there is literally nothing but a benefit to Diggs to do this it seems like it wouldn't be that big of a deal.

 

Depends on the tax code.  

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1 minute ago, eball said:

 

 

Serious question...does accelerating his up front payment have tax implications for Diggs?  I mean, if there is literally nothing but a benefit to Diggs to do this it seems like it wouldn't be that big of a deal.

No

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Posted (edited)

Digs was the biggest opportunity for restructure cap savings. Looks like the Bills could create another $20 mil in cap space if they did all the restructure moves identified on the overthecap web site. Seems like plenty of room to do as many deals as they want....

Edited by Desert Bills Fan
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2 minutes ago, Desert Bills Fan said:

Looks like the Bills could create another $20 mil in cap space if they did all the restructure moves identified on the overthecap web site. Seems like plenty of room to do as many deals as they want....

 

It's stuff like this why I often make the tongue-in-cheek statement of "The salary cap is a myth".

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1 minute ago, DrDawkinstein said:

 

It's stuff like this why I often make the tongue-in-cheek statement of "The salary cap is a myth".

Just have to be careful and only do it with players you know you won't have to cut or trade since the signing bonus would be due in full at that point, instead of spread over the contract.

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7 minutes ago, teef said:

thank you for everything you do!

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.

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16 minutes ago, BuffaloBills1998 said:

It wouldn’t make any sense to trade for him. We’re literally stacked at WR and he has a bloated contract too boot also he hasn’t been able to stay healthy.

I don't think we are either. I was just posting that to get some folks going who were advocating for us getting Julio in a previous thread. :thumbsup:

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2 minutes ago, Desert Bills Fan said:

Digs was the biggest opportunity for restructure cap savings. Looks like the Bills could create another $20 mil in cap space if they did all the restructure moves identified on the overthecap web site. Seems like plenty of room to do as many deals as they want....

There’s really not a lot of those moves you’d WANT to make though.  A Dawkins restructure is about it IMO.  The Bills are now set up to make it through the season comfortably.  The Bills could even make a move with a relatively modest hit this year.  Even a bigger move - like with a Steven Nelson level contract - could be made if it were a longer contract or if voidable years were used on a short one. 

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2 minutes 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.

and i said, thank you for everything you do.

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1 minute ago, psuscott16 said:

Just have to be careful and only do it with players you know you won't have to cut or trade since the signing bonus would be due in full at that point, instead of spread over the contract.

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. 

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The key here is the timing.  June 1st is a key date for trades/cuts, because of how dead money is converted off contracts.  

 

Brandon Beane could have restructured Stephon Diggs at pretty much anytime after the season ended.  He could have signed a player like Steven Nelson or Richard Sherman months ago during free agency.  There is no rush for him to extend either Josh Allen or Tremaine Edmunds.

 

The fact this happened today in the A.M., tells me Beane is eying a post-June 1 cut/trade candidate.  

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47 minutes 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!

He will get taxed by ny standards rather than say game checks in Florida re Jacksonville and Miami where there is no tax

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38 minutes ago, Buffalo03 said:

Ertz so good

Come on, baby make it Ertz so good

Our tight ends never play like they should

Let's make it, Ertz so good

200w.gif

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54 minutes ago, Boxcar said:

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

Well, Tyreek Hill has refused to do that in the past, for no good reason.

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37 minutes 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?

All bonus money will be paid upfront at ny tax rates game checks like Miami and Jacksonville do not get taxed because there is no state income tax.

 

So he will lose some money yes

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