Matt Kalil Contract Details

[Bronn]

It still doesn't make any sense to me, as I was using the OverTheCap chart.

I guess there is no official report public on the full details and it is all "according to a source."

You can guarantee signing bonuses at intervals other than the duration of the contract, and I don't think you  have to prorate them evenly over the span.

CBA, Article 16, Section 6, Paragraph 5: Proration: The total amount of any signing bonus shall be prorated over the term of the Player Contract (on a straight-line basis, unless subject to acceleration or some other treatment as provided in this Agreement), with a maximum proration of five years, in determining Team Salary and Salary.

[jdpanther5]

  It's a bonus. So it will be spread out. That's the purpose. Why would any GM want to put a guaranteed 10M on the books for a single season? Especially next year for us. (KK, Star, Trai, Norwell, KB) all require huge raises except KK.
  That would only happen with the non exercise fee. Since it's the same amount, no benefit in using that.

Bolded is what I was saying. The point that the big contract websites keep overlooking is that the option is reportedly for 2021, so they wouldn't start applying it to the cap until then. It reads as if you take the big hit in either 2018 or 2021 without the benefit of spreading it out overtime. With the really low base next year, I would say it's preferable to decline the option next year and just pay the fee rather than have the huge base + the option in 2021.

Though I have to read this new information about it being a one year deal.

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[Toomers]

53 minutes ago, jdpanther5 said:

 

Bolded is what I was saying. The point that the big contract websites keep overlooking is that the option is reportedly for 2021, so they wouldn't start applying it to the cap until then. It reads as if you take the big hit in either 2018 or 2021 without the benefit of spreading it out overtime. With the really low base next year, I would say it's preferable to decline the option next year and just pay the fee rather than have the huge base + the option in 2021.

Though I have to read this new information about it being a one year deal.

Sent using the amazing CarolinaHuddle mobile app
 

 

Don't worry. They changed it again already. I think you may be right. Not happy about an 11M+ hit next year, but I'm sure it will change again. But I think everyone who's commented on this contract has been right at least once. Just depends which version we all read.

   

[AU-panther]

5 hours ago, Bronn said:

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.

The signing bonus will be prorated over the life of the contract which is 5 years.  The option bonus (if there is one, seems to be some conflicting reports) would be prorated over the last 4 years of the deal if it happens next year.

Some reports said a $10m option bonus in 2018, some are saying $11m salary in 2018.  Personally I'm guessing it will end up being a $10m bonus in the second year.  I don't see the team carrying his contract at a $11m salary number in the second year

As far as the option being guaranteed it depends, some reports said that there was a non exercise fee built in.  Normally a non exercise fee basically guarantees the option.  You either pay the option or the fee, both of which are usually the same.

Next question is why would a team do that?

$22m signing bonus prorates as such

2017   $4.4m

2018   $4.4m

2019   $4.4m

2020  $4.4m

2021  $4.4m

$12m signing bonus  + $10m bonus a year later prorates as

2017  $ 2.4m

2018   $4.9m

2019   $4.9m

2020   $4.9m

2021  $4.9m

As you can see the signing bonus + option bonus lowers the first year cap hit.

 

[AU-panther]

6 hours 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.

I include the first year cost if cut numbers to be able to compare them to other contracts.  It gives you an idea of the fully guaranteed money in a contract.

For example Whitworth signed a 3yr/$33.75m contract

http://overthecap.com/player/andrew-whitworth/159

If he is cut after the first year it will cost his team $15m.

If he is cut after the second year it will cost his team $23m

If he plays all 3 years his total cost will be $33.75

So if Kalil's $10m in the second year is in fact fully guaranteed either with a non -exercise fee or by being built into the salary than it would actually be more expensive to cut Kalil than Whitworth if he was to struggle in the first 2 years.  That gives you an idea of how good of a contract it was for Kalil.

Also if he plays for 3 years we will have paid him $33 not $25m

2017: $1m salary + $12m signing bonus

2018: $1m salary + $10m option bonus  or $11m salary (depends on who you believe)

2019: $7m salary

+ some workout and roster bonuses that would bring the total to $33m

 

[tiger7_88]

Why am I surprised at the Usual Suspects still being whirling dervishes in their desperate efforts to spin spin spin spin spin signing Kalil as a bad thing?

I should have known better.

[AceBoogie]

On 3/13/2017 at 8:02 PM, stirs said:

Well, since he didn't sneak out on the field and injure our entire Oline, don't think he owes us one

lol that's why we went 6-10 huh?

[stirs]

2 minutes ago, AceBoogie said:

lol that's why we went 6-10 huh?

our biggest FA signing would indicate such

[AceBoogie]

10 hours ago, stirs said:

our biggest FA signing would indicate such

We sucked long before the line went to poo, and even still the lack of depth still falls on you know who. But I understand, the man could rape children and you'd blame the child's parents. 

[uncfan888]

The stuff ace posts is so entertaining