Matt Kalil Contract Details

[SOJA]

somewhere Robert Mays and Josh Norris are still cackling to themselves whilst considering themselves informed NFL writers

[Saca312]

Joe Person has a conflicting report on the actual contract terms. The irony is that Person's breakdown makes this look like a better deal than was originally reported.

http://www.charlotteobserver.com/sports/nfl/carolina-panthers/nfl-blog/article138322628.html

Quote

The Carolina Panthers made a $55.5 million bet on left tackle Matt Kalil, whose five-year contract includes $24 million in guaranteed money over the first two seasons.

Kalil, the No. 4 overall pick by the Vikings in 2012, received a $12 million signing bonus from the Panthers, according to a copy of his contract parameters obtained by the Observer.

Kalil, the younger brother of Panthers center Ryan Kalil, went to the Pro Bowl as a rookie but struggled with a hip injury and inconsistent player over the past three seasons. He says he’s moving quicker than he has since college after undergoing surgery to repair the labrum in his hip last fall.

Kalil has guaranteed salaries of $1 million and $11 million in his first two seasons in Charlotte. His $11 million base in 2018 is nearly identical to what he made in 2016 in his final season in Minnesota.

Kalil’s $7 million salary for 2019 is guaranteed if he’s injured, and fully guaranteed if he’s on the roster on the third day of the 2019 league year. He has base salaries of $10 million in 2020 and $10.5 million in 2021, when Kalil will be 32.

Kalil’s contract is comparable to that received by former Detroit tackle Riley Reiff, another member of the 2012 draft class who will replace Kalil with the Vikings.

Reiff received a five-year deal worth $58.75 million, with $26.3 million in guarantees. Reiff’s $11 million signing bonus is slightly less than Kalil’s.

Kalil gets a $400,000 bonus any year he makes the Pro Bowl.

Beginning next offseason, he’ll receive $250,000 a year in workout bonuses, matching the workout incentive in his brother’s Panthers deal.

 

[Saca312]

 

[Shocker]

Gettlmagic, boom.  

[TheSpecialJuan]

Brilliant work by Gettleman

[Toomers]

    The Joe Person numbers are wrong from what I can tell now. He made the mistake of putting the 10M option bonus cap hit all in one year. 

YEAR	BASE SALARY	SIGNING BONUS	OPTION BONUS	WORKOUT BONUS	CAP HIT	DEAD CAP
2017	$1,000,000	$2,400,000	-	$800,000	$4,200,000	$14,000,000
2018	$1,000,000	$2,400,000	$2,500,000	$800,000	$6,700,000	$10,600,000
2019	$7,000,000	$2,400,000	$2,500,000	$800,000	$12,700,000	$7,200,000
2020	$10,000,000	$2,400,000	$2,500,000	$800,000	$15,700,000	$4,800,000
2021	$10,500,000	$2,400,000	$2,500,000

  And of course OTCap  has different numbers. Which shows that this is all confusing to even people that do this all the time.

 

 

Year	Base Salary (Guaranteed)	Bonuses				Cap Number		Dead Money & Cap Savings Cut (pre-June 1)Cut (post-June 1)Trade
		Prorated	Roster	Workout	Other
2017	$1,000,000 $1,000,000	$2,400,000	$0	$0	$0	$3,400,000		$24,000,000	($20,600,000)
2018	$1,000,000 $1,000,000	$4,900,000	$750,000	$250,000	$0	$6,900,000		$20,600,000	($13,700,000)
2019	$7,000,000	$4,900,000	$750,000	$250,000	$0	$12,900,000		$14,700,000	($1,800,000)
2020	$10,000,000	$4,900,000	$750,000	$250,000	$0	$15,900,000		$9,800,000	$6,100,000
2021	$10,500,000	$4,900,000	$750,000	$250,000	$0	$16,400,000		$4,900,000	$11,500,000

 

  I'm going to have to with OTC. We have to pay that 10M option bonus no matter what. So there's no way we could get out of this contract with Sportrac dead cap numbers. I know everyone is about sick of trying to figure this out, and discussing it, as I am. Maybe this will help  Of course, by this afternoon I expect to hear that all details have changed again. 

[CWORS]

Great signing but that contract though!!! 

[AU-panther]

There seems to be a lot of varying opinions and questions about Kalil's contract so maybe I can clear some of it up.

From my understanding (and I could be wrong) the non-exercise fee basically guarantees his $10m option bonus.  So basically you can think of it as he received a $22m signing bonus.  $12m now and $10m next year.  Also his $1m salary the next two years is guaranteed.

All of my information I'm getting from here: http://overthecap.com/player/matt-kalil/1793/

One of the best ways to judge a contract is to look at the cap cost for each year if the player is cut.  That gives you good idea of the guarantees and the leverage that the player has.

If Kalil is cut after one year his total cap cost for that one year of service will be $24m.

If Kalil is cut after two years his total cap cost for those two years of service will be $24m.

If Kalil is cut after three years his total cap cost for those three years of service will be $33m.

If Kalil is cut after four years his total cap cost for those four years of service will be $44m.

If Kalil plays the entire 5 years his total cap cost for those five years of service will be $55.5m.

The idea that this is a low risk contract for the team is incorrect. The guaranteed percentage of the contract is quite high and is very friendly to the player.

The fact is we paid a premium for him.  If he turns out to be a top 10 tackle than it is a fair deal for both sides.  This is the first big gamble by DG, only time will tell if he was correct.

[steven8989]

Still cheaper than Okung

Sent using the amazing CarolinaHuddle mobile app

[Bronn]

1 hour ago, AU-panther said:

There seems to be a lot of varying opinions and questions about Kalil's contract so maybe I can clear some of it up.

From my understanding (and I could be wrong) the non-exercise fee basically guarantees his $10m option bonus.  So basically you can think of it as he received a $22m signing bonus.  $12m now and $10m next year.  Also his $1m salary the next two years is guaranteed.

All of my information I'm getting from here: http://overthecap.com/player/matt-kalil/1793/

One of the best ways to judge a contract is to look at the cap cost for each year if the player is cut.  That gives you good idea of the guarantees and the leverage that the player has.

If Kalil is cut after one year his total cap cost for that one year of service will be $24m.

If Kalil is cut after two years his total cap cost for those two years of service will be $24m.

If Kalil is cut after three years his total cap cost for those three years of service will be $33m.

If Kalil is cut after four years his total cap cost for those four years of service will be $44m.

If Kalil plays the entire 5 years his total cap cost for those five years of service will be $55.5m.

The idea that this is a low risk contract for the team is incorrect. The guaranteed percentage of the contract is quite high and is very friendly to the player.

The fact is we paid a premium for him.  If he turns out to be a top 10 tackle than it is a fair deal for both sides.  This is the first big gamble by DG, only time will tell if he was correct.

I think you're making it too complicated. Others are too.

I will start out by saying that, in the simplest of terms, we aren't going to cut him at any point in 2017. Why even factor that?

Also, I doubt we only give him one year to prove himself as a Tackle, be it left or right. You might as well cut Ryan if you cut Matt after only giving him one year, so that's probably out. A second season is also a lot of unknown variables to let a guy earn a spot.

Three years of service should be enough for him to either pan out or not. Once he has completed his third contract year, he will have been paid $23.2 million in base salary which includes the prorated signing bonus. That means we will only owe him $1.8 million if his contract is for a guaranteed $25 million. That's what we'll have to carry in dead cap for him cutting him in a post year three scenario.

The $10 million bonus post-year-three is an OPTION bonus, which means we have the option to pay him that or not. If we do, it too will be prorated over the final two years of his five year deal.

Bonuses don't count against the cap in lump sum format. They are prorated and only due in larger amounts if you cut someone before the prorated portion is paid out. Therefore, as I indicated earlier, it is pretty obvious we plan on giving Matt 3 years to carve out his place or show us that he can't. That gives us time to look at other options, while not overpaying. His bonus will be paid out over the course of the first three years. The $10 mil doesn't kick in until after that.

It is a roll of the dice for three years, hoping that Kalil pans out. If he does, we've got a bargain with inflation, only having to pay our LT $15-16 mil a year in years 4-5.

[panther4life]

1 hour ago, Toomers said:

    The Joe Person numbers are wrong from what I can tell now. He made the mistake of putting the 10M option bonus cap hit all in one year. 

YEAR	BASE SALARY	SIGNING BONUS	OPTION BONUS	WORKOUT BONUS	CAP HIT	DEAD CAP
2017	$1,000,000	$2,400,000	-	$800,000	$4,200,000	$14,000,000
2018	$1,000,000	$2,400,000	$2,500,000	$800,000	$6,700,000	$10,600,000
2019	$7,000,000	$2,400,000	$2,500,000	$800,000	$12,700,000	$7,200,000
2020	$10,000,000	$2,400,000	$2,500,000	$800,000	$15,700,000	$4,800,000
2021	$10,500,000	$2,400,000	$2,500,000

  And of course OTCap  has different numbers. Which shows that this is all confusing to even people that do this all the time.

 

 

Year	Base Salary (Guaranteed)	Bonuses				Cap Number		Dead Money & Cap Savings Cut (pre-June 1)Cut (post-June 1)Trade
		Prorated	Roster	Workout	Other
2017	$1,000,000 $1,000,000	$2,400,000	$0	$0	$0	$3,400,000		$24,000,000	($20,600,000)
2018	$1,000,000 $1,000,000	$4,900,000	$750,000	$250,000	$0	$6,900,000		$20,600,000	($13,700,000)
2019	$7,000,000	$4,900,000	$750,000	$250,000	$0	$12,900,000		$14,700,000	($1,800,000)
2020	$10,000,000	$4,900,000	$750,000	$250,000	$0	$15,900,000		$9,800,000	$6,100,000
2021	$10,500,000	$4,900,000	$750,000	$250,000	$0	$16,400,000		$4,900,000	$11,500,000

 

  I'm going to have to with OTC. We have to pay that 10M option bonus no matter what. So there's no way we could get out of this contract with Sportrac dead cap numbers. I know everyone is about sick of trying to figure this out, and discussing it, as I am. Maybe this will help  Of course, by this afternoon I expect to hear that all details have changed again. 

Overthecap nailed this one. I was on the right path but didn't think to spread the option bonus out over the final 4 years.

When you look at the dead money incurred each year if we cut him we'd have have 0 savings for doing so until after year 3 without designating as a June 1st cut and spreading the dead money hit over 2 years.

Even if we cut him after the 4th year that's 9.8 million in dead money we'd have to incur which would save us 6.1 million vs paying his full cap hit.

Considering supply and demand dictated this market can't say it's a bad deal. More of a bad situation to be in. I do like the aggressiveness we've shown this year and that the big cap hits won't come until 2019 when if you look ahead we only have 5-7 big names under contract.

As it sits right now only Cam,Luke,Matt Kalil and Addison have really large hits for 2019.

Plausible by that point

Star,Short,Benjamin,Turner,Norwell,Shaq(5th year option) will also have a big deals at that point but washes out with the older vets no longer having big cap hits.

The deal itself is fair based on market value. The structure is awesome when looking ahead at the roster and future cap hits.

 

 

[Toomers]

9 minutes ago, Bronn said:

I think you're making it too complicated. Others are too.

I will start out by saying that, in the simplest of terms, we aren't going to cut him at any point in 2017. Why even factor that?

Also, I doubt we only give him one year to prove himself as a Tackle, be it left or right. You might as well cut Ryan if you cut Matt after only giving him one year, so that's probably out. A second season is also a lot of unknown variables to let a guy earn a spot.

Three years of service should be enough for him to either pan out or not. Once he has completed his third contract year, he will have been paid $23.2 million in base salary which includes the prorated signing bonus. That means we will only owe him $1.8 million if his contract is for a guaranteed $25 million. That's what we'll have to carry in dead cap for him cutting him in a post year three scenario.

The $10 million bonus post-year-three is an OPTION bonus, which means we have the option to pay him that or not. If we do, it too will be prorated over the final two years of his five year deal.

Bonuses don't count against the cap in lump sum format. They are prorated and only due in larger amounts if you cut someone before the prorated portion is paid out. Therefore, as I indicated earlier, it is pretty obvious we plan on giving Matt 3 years to carve out his place or show us that he can't. That gives us time to look at other options, while not overpaying. His bonus will be paid out over the course of the first three years. The $10 mil doesn't kick in until after that.

It is a roll of the dice for three years, hoping that Kalil pans out. If he does, we've got a bargain with inflation, only having to pay our LT $15-16 mil a year in years 4-5.

   The 10M option bonus is just a way to keep this year's cap hit a little lower. It HAS to be done after the first year. Then it's just like every other bonus and split among remaining years. As has been posted above in both charts.

  And we cut him after 3 years, we will have paid him 36M and accounted for 23,2M of cap space. But would also have to eat 9.8M in dead money. 

  

[Bronn]

18 minutes ago, Toomers said:

   The 10M option bonus is just a way to keep this year's cap hit a little lower. It HAS to be done after the first year. Then it's just like every other bonus and split among remaining years. As has been posted above in both charts.

  And we cut him after 3 years, we will have paid him 36M and accounted for 23,2M of cap space. But would also have to eat 9.8M in dead money. 

  

I don't see where this info comes in. I read the 10M option is only an option after the first three years.

His current bonus is his signing bonus, which is 12M prorated over the first three seasons.

The 10M option kicks in in years 4-5 if we exercise it, and prorates half each year.

[Bronn]

First three seasons:
Base salaries - 1m, 1m, 7m. = 9m
Signing bonus - 2.4m, 4.9m, 4.9m = 12.2m
Roster + workout bonus - 0, 1m, 1m = 2m
Total - 23.2m paid out = balance of 1.8m in cap obligation for guaranteed money.

Last two seasons:
Base salaries - 10m, 10m = 20m
Option bonus - 4.9m, 4.9m = 9.8m
Roster + workout bonus - 1m, 1m = 2m
Total - 31.8m paid out for two seasons

First three plus last two = $55m over 5 year term.

The option bonus is just that, an option. The only thing we owe him after year 3 is 1.8m and a handshake.