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Restructures: Not that BIG of a deal!


timdaley73

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I saw threads thanking the players for restructuring, etc... I agree to a degree... I am grateful our players were willing and did restructure... But, it did NOT hurt their wallets!! They still get the same money guaranteed as a bonus! So, the bottom line is that it really is NOT THAT BIG OF A DEAL for these players as far as their wallets...

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its not about the wallet.. its about keeping the team together..

some of the high priced/core skins could have declined and opted to be cut and become free agents.. but they worked with FO to keep as many of the players together as possible.. so although they may have not taken a pay cut..their willingness to help out is appreciated..

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Since i was the one who started the "Official Thread" to thank the players. My intention was just showing appreciation for the spirit of unity that they have. Remember we have been awful for so many years, not because we lacked talent, but because we lacked team chemistry. The Redskins were nothing but a bunch of high priced, big name, individuals; which resulted in consecutive losing seasons. But because of Coach Gibbs' vision, he has reinstated the family atmosphere. It is a rare thing in today's sports, so they should be commended.

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Yeah I agree every player should be commended when he takes his salary upfront as opposed to waiting for it to be paid during hte season. They are just so gracious...

Take all this money now or we will have to cut you and a bunch of others...

What are you gonna do? What's best for yourself right? Well what was best for Springs and company was to go ahead and take the money. They may have talked a good game in interviews, but when it comes down to it, these players are looking out for #1 in these business decisions...

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I saw threads thanking the players for restructuring, etc... I agree to a degree... I am grateful our players were willing and did restructure... But, it did NOT hurt their wallets!! They still get the same money guaranteed as a bonus! So, the bottom line is that it really is NOT THAT BIG OF A DEAL for these players as far as their wallets...

Yeah, as they say, it's a "win-win" for them. (Although I did hear that maybe Brunell took a little hit?) In any case, there's some work involved...and both sides have to do their due diligence (see LaVar)...so they take on a bit of risk by doing so. Plus, Upshaw advised agents to not restructure...and these guys could be stubborn in hopes of getting cut and making a big payday in 2007. In THIS case, I think we should be thanking them.

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Yeah I agree every player should be commended when he takes his salary upfront as opposed to waiting for it to be paid during hte season. They are just so gracious...

Take all this money now or we will have to cut you and a bunch of others...

What are you gonna do? What's best for yourself right? Well what was best for Springs and company was to go ahead and take the money. They may have talked a good game in interviews, but when it comes down to it, these players are looking out for #1 in these business decisions...

Best post of the day, in my opinion. These players do not want to be cut and go into the market right now. There are only a handful of teams that can afford to sign anyone at this point this year.

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I saw threads thanking the players for restructuring, etc... I agree to a degree... I am grateful our players were willing and did restructure... But, it did NOT hurt their wallets!! They still get the same money guaranteed as a bonus! So, the bottom line is that it really is NOT THAT BIG OF A DEAL for these players as far as their wallets...

But to have it happen en masse like that in a period of a couple of days is meaningful.

Go Skins!

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The only fallacy here is that both the players and the team knew when they carved out the original contracts that a restructuring would need to occur at some point. The uncertainty regarding the CBA has accelerated that process. Kudos to the players for being flexible - but I doubt the request came as a surprise to any of them.

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How does restructuring work?

Restructuring is probably the most complicated and intricate part of the salary cap process. I don't understand it all myself, but I will try to present you with an example of the most common and simplest form of a restructured contract.

In our example, let's say the Falcons need to save some extra space so they need to restructure some contracts. Say it is the offseason prior to Year 3 of Ed's contract, so it would not be a good idea to cut him (would add an extra $1 million to the Falcons cap). So they decide to restructure Ed's contract. A common form of restructuring is lowering the player's base salary. In this case, the Falcons can lower Ed's base salary of $1.5 million to $500,000. Now the Falcons have cleared $1 million off Ed's contract. But now what happens to that $1 million? Usually teams treat it as a signing bonus. In that way, it becomes prorated over the remaining years of his contract just like a normal signing bonus. That means that there will be a $333,333 cap hit ($1 million / 3 years) in Years 3, 4, and 5. Although this frees up $666,667 in cap space in Year 3, it adds an additional $333,333 to the Falcons cap in Years 4 and 5.

So although restructuring is a quick way to gain cap space without losing a player, but it also can hurt a team down the road. When you begin to restructure contracts with large bonuses, it can be very detrimental to the salary cap in future years.

That explains a little about restructuring but it still doesn't show how a player can restructure, save the team cap space, but not lose any salary in the process.

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I saw threads thanking the players for restructuring, etc... I agree to a degree... I am grateful our players were willing and did restructure... But, it did NOT hurt their wallets!! They still get the same money guaranteed as a bonus! So, the bottom line is that it really is NOT THAT BIG OF A DEAL for these players as far as their wallets...

Not that big a deal????? Allowing YOUR REDSKINS to keep some talent/players that they wouldnt be unless the restructuring occurred is a HUGE deal. SO what they still will get their money?????!!!!! Their contracts called for it.....no surprise their...they SHOULD get what they signed their contract for at some point or another...but WHEN helps the GREATER NEED OF THE FRANCHISE!

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Every other year it's not a big deal because the team just guarantees salary and makes it into a signing bonus and prorates it but this year being potentially the final capped year things were different and the players should get some praise. In order to create cap space this year the entire contract would have to be changed around and agents and players don't like to do that unless they increase their money bigtime. I haven't seen Brunell's redo but if they created 1.8M of cap space he likely took a cut this year and in the future.

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I think it would be interesting to see, for the sake of comparison, if any other teams have so many players restructure when the team is in a financial bind.

While I'm sure that nobody in today's NFL is hurting financially, I'm not sure that the players that have agreed to restructure have done so soley for self intersted reasons. I believe Brunell has actually taken a pay cut, and Portis has lopped three years off the end of his contract. In Portis' case, shortening his contract entails quite a risk to him - he could lose future money if he has a bad season or gets hurt. So, some players seem to have given up a certain amount of money (MB) or security (CP) by renegotiarting.

Probably, as with any contract negotiation, both sides have tried to work out a deal that would be as beneficial to both parties as possible. So, it should not be surprising that both the owners and players would benefit from many of these restructures. However, it is worth noting that the players seem almost eager to help the team by renegotiating. Furthermore, some may have done so at their own expense.

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I saw threads thanking the players for restructuring, etc... I agree to a degree... I am grateful our players were willing and did restructure... But, it did NOT hurt their wallets!! They still get the same money guaranteed as a bonus! So, the bottom line is that it really is NOT THAT BIG OF A DEAL for these players as far as their wallets...

Thank you, :obvious: I think you missed the point of the restructuring & why we are so happy about it.

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the Falcons can lower Ed's base salary of $1.5 million to $500,000. Now the Falcons have cleared $1 million off Ed's contract. But now what happens to that $1 million? Usually teams treat it as a signing bonus. In that way, it becomes prorated over the remaining years of his contract just like a normal signing bonus. That means that there will be a $333,333 cap hit ($1 million / 3 years) in Years 3, 4, and 5. Although this frees up $666,667 in cap space in Year 3, it adds an additional $333,333 to the Falcons cap in Years 4 and 5.

That explains a little about restructuring but it still doesn't show how a player can restructure, save the team cap space, but not lose any salary in the process.

It does show you right there. Signing bonuses are guaranteed. He will get his 1.5 mil but it will take 3 yrs to get it.

.

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I think it would be interesting to see, for the sake of comparison, if any other teams have so many players restructure when the team is in a financial bind.

While I'm sure that nobody in today's NFL is hurting financially, I'm not sure that the players that have agreed to restructure have done so soley for self intersted reasons. I believe Brunell has actually taken a pay cut, and Portis has lopped three years off the end of his contract. In Portis' case, shortening his contract entails quite a risk to him - he could lose future money if he has a bad season or gets hurt. So, some players seem to have given up a certain amount of money (MB) or security (CP) by renegotiarting.

Probably, as with any contract negotiation, both sides have tried to work out a deal that would be as beneficial to both parties as possible. So, it should not be surprising that both the owners and players would benefit from many of these restructures. However, it is worth noting that the players seem almost eager to help the team by renegotiating. Furthermore, some may have done so at their own expense.

Portis only gained from that redo. He got 300K more and the right to become a FA after 08 at the age of 27. He didn't give up any future salary that wouldn't have been taken away anyhow should he become injured or lose effectiveness. Remember this is the NFL where most contracts are not guaranteed.

Simple restructures were more common in the early days of the cap but most teams stopped doing them because the increased SB proration leads to trouble down the road and players always didn't give their best effort once they receive that big bonus check in the spring and know there's no way they will be cut that year and even in following years because the increased proration makes it more expensive for a team to cut a player than keep him.

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But they made the effort to meet with the FO and hammer it out. Thats what Im thankful for. You dont see every other cash strapped team in the league restructure as many contracts as we did. I dont think thats just because they didnt think of it.

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But they made the effort to meet with the FO and hammer it out. Thats what Im thankful for. You dont see every other cash strapped team in the league restructure as many contracts as we did. I dont think thats just because they didnt think of it.

The players themselves aren't really doing much accept agreeing to receive money they aren't guaranteed to get right now. In Portis` case I don't think he even had a choice as it was written into his existing contract.

You're basically saying it's great that these players don't hate their team enough to not accept a big check :-)

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