Any signing bonus or roster bonus goes against the 2017 cap also. That is where they can spread it over another year. A reason it was important to have it done before week 17.
Linsley extended!
- Thread starter C-Lee
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I honestly don't know why it really matters since unused cap can be rolled over to the following season.
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HardRightEdge
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I fail to see how that is relevant. Unused cap carries over to the next year anyway.
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HardRightEdge
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I just saw your post. I could delete mine, but I'll let it stand.
Simply pointing out a 3 year extension before the end of the season can be averaged over 4 years as far as the $/year that are spouted about are concerned.
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HardRightEdge
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That's a peculiar way to look at it.
Assuming the deal is for $25.5 million for play through the 2020 season, that money might viewed as allocated to 3 seasons + 1 game. Linsley's game check for this week's game is about $112,000. Maybe that amount can viewed as "savings" but that's about it.
The only meaningful way to view this as a 4 year deal is if you want to view a 1/4 of the money as a 2017 performance bonus for this season's play. Same for Adams' deal. That would imply you've foregone the advantage of the 4th. year of the cheap rookie deal. That's equally peculiar since teams don't just throw around retroactive "thank you" money.
I don't think there's any more to these early signings than wanting to lock down the offensive players, keep them out of free agency, and fix their costs going into the offseason planning process which will likely see some significant changes to the roster particularly if the new DC is a 4-3 guy...shed some cap, bring in some FAs that fit.
McKnowledge
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Very smart move by management. By next year or the season after, Linsley's deal will be a bargain. GB gets prime production (hopefully) on a relative bargain deal. This and resigning Adams is great.
What does this accomplish other than distracting from reality? Reality is that Linsley and Adams are in their 4th year of rookie deals and their new contracts are all new money for the specified amount of years of extension. How they choose to report these expenses doesn't change that.
It's absolutely nothing more than an accounting trick to pretty up the books at the end of a quarter and accelerate expense reporting to defray some of the later expense.
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HardRightEdge
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That raises an interesting question. Perhaps this is a bit of tax cut financial engineering, accelerating costs to defray tax liability at the higher 2017 rate than what will prevail in 2018.
If there is a signing bonus involved, which I assume there is, it can now be averaged over 4 years instead of 3 and since 2017 is over it is essentially off the books. it may not mean much for the cap hit since unused money rolls over but now a 20 million SB counts 5 million a year instead of almost 7 which reduces dead money if he is cut before the contract ends. Also, by adding a bunch of money to his 2017 contract in the form of a bonus they can actually give him less in the following years and he still gets the same amount of money. Say he gets an additional 2 million this year in the form of one lump sum check he may knock 500K off next years salary because it would be spread out over the season. I'm not saying that is what happened but just pointing out a couple of advantages of getting the deals done in 2017.
GBkrzygrl
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Glad to see them both extended. Didn't expect it this quick and glad that it did not drag out. Seems to me that when the brass decides that they want to keep certain players, they move very quickly.
Hopefully Adams can avoid any more serious injuries.
Linsley has fit right in from day one. Glad this is one less player that they have to deal with.
Hopefully Adams can avoid any more serious injuries.
Linsley has fit right in from day one. Glad this is one less player that they have to deal with.
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HardRightEdge
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Your dead cap argument doesn’t hold up. If there was more dead cap at the end then you’ve absorbed more cap earlier that could be rolled over. It’s a wash.
If the ballclub’s effective tax rate drops from 35% to 25% in 2018 under the new rates, then accelerating $20 million in signing bonus expense into 2017 yields a $2 million cash tax savings.
For me, this may be the compelling reason for the hurry up on these extentions.
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Also don't under estimate the agent's ability to run around telling unrepresented draftees "Hey look, I got him a 3 year $8m+ per extension." At the same time the GM can tell management "we got him for 3 more years at $6m+ per."
I had forgotten about the tax "reform" implications. Also high state tax states will soon see an outflow of highly paid talent living in lower state tax areas year round.
I get what you are saying but teams don't really sign players planning for dead cap money. They plan on spending the entire amount so it really only becomes a benefit if they do decide to cut them later on. Over the length of the deal it is a wash but if we decide to cut him in 2 years you are going to be happy we ate the extra money in 2017.
There may be some tax benefits but there has to be more than that because teams have made it a point to extend players before the end of the year in the past where there was not expected tax benefits. It does seem less important now that unused cap can be rolled over but I can't help but think there is some benefit in being able to claim a good chunk of an extension in a year that is essentially over.
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HardRightEdge
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Any extra signing bonus cap allocated retroactively to a season already played is the amount of cap that otherwise would have rolled over and been eaten as dead cap after year 2 if the guy is then cut.
There's no way around it. It's a wash.
And that's even if it actually gets booked this way in the first place.
weeds
Fiber deprived old guy.
I'm happy with this extension. I've always valued the big fat guys up front, particularly the guards and center, because if those guys aren't good, you're screwed pre-snap. Linsley LOOKS like a center.
