Panthers Converted OT Matt Kalil's $10M Option Bonus Into A Signing Bonus Guaranteeing He'll Be On Roster In 2018

[falconidae]

Just now, Mr. Scot said:

Look at the chart again.  The bonus was already spread.  They could have chosen not to spread it out, which the article indicates would have been a response to him playing badly.

The idea would have been to go ahead and eat a bigger cap hit this year but save money down the road.  What they did today not only saved nothing, but actually made it harder to release him next year.

Sorry dude, but you've got it wrong.

Naah, he's right, Sportrac  assumed that the Panthers would spread the bonus out, but that wasn't automatic. If the Panthers hadn't exercised the bonus, the 10 mil became salary in 2018.

[Mr. Scot]

1 minute ago, grimesgoat said:

You may be referring to the signing bonus, which is spread out over 5 years.  But there is a "restructure" bonus that is spread over 4 years and happens to add up to 10m.  I'm pretty sure that is the "option" the panthers chose to exercise in lieu of paying it all in 2018 as part of his base salary.  The other option would have been to cut him outright, but the hit from that would have been 19m+.

Look under the column that says "Option".

Nowhere does it say this would have been converted to salary.  It does say that the Panthers could have chosen to convert it to save money down the road.  What they did instead makes him tougher to cut.

 

[Mr. Scot]

4 minutes ago, falconidae said:

Naah, he's right, Sportrac  assumed that the Panthers would spread the bonus out, but that wasn't automatic. If the Panthers hadn't exercised the bonus, the 10 mil became salary in 2018.

Spotrac was asked directly how this benefits the team.

There's not a single thing confirming the notion that this would have been converted to salary. 

There are several sources confirming that this doesn't change anything about the cap.

[falconidae]

2 minutes ago, Mr. Scot said:

Saw all that.  It explains why people couldn't understand their not being a cap savings.

People assumed that the option bonus would have all counted this season.  Instead, it was already spread out over four years, the same way a signing bonus would be.  The difference is that a signing bonus is guaranteed when an option bonus isn't.

No, he wasn't going to be released this year, but could have been released next year without it being too painful.  Not so anymore.

Except, you keep ignoring the piece that the bonus converted to salary on March 19th. Unless they cut him, he's guaranteed that 10 mil, one way or another. The only options the team had  with the option bonus were to cut him or to choose how he got the money.

 

[Mr. Scot]

1 minute ago, falconidae said:

Except, you keep ignoring the piece that the bonus converted to salary on March 19th. Unless they cut him, he's guaranteed that 10 mil, one way or another. The only options the team had  with the option bonus were to cut him or to choose how he got the money.

You have a link that shows where that bonus would have converted to 10 million salary for this season?

The Riot Report analysis says the Panthers could have changed the bonus if they chose in order to save money on future years.  But that's not what they did.

 

[falconidae]

Just now, Mr. Scot said:

Spotrac was asked directly how this benefits the team.

 

 

There's not a single thing confirming the notion that this would have been converted to salary. 

There are several sources confirming that this doesn't change anything about the cap.

Yes there is:

2018 Option Bonus: $10M (must be exercised by 3/19/2018)
If not exercised, the $10M converts to salary, and $11M 2018 salary fully guarantees

That's exactly what that says, and it's why the Panthers didn't have much choice.

[falconidae]

Just now, Mr. Scot said:

You have a link that shows where that bonus would have converted to 10 million salary for this season?

The Riot Report analysis says the Panthers could have changed the bonus if they chose in order to save money on future years.  But that's not what they did.

 

what part of," If not exercised, the $10M converts to salary," do you not understand

No, the Panthers were never going to allow that to happen, but it's in the contract.

[KendrickPanther]

6 hours ago, Mr. Scot said:

I realize you believe your opinion is more valuable than that of the people that cover the team, but I'm going to take their word for it.

The best way I can put it is they normalized his contract. The option bonus was a bit obscure and this is a simplified way of doing it. They also don't have to wait for the cap figure to look "right" on a certain date.

The money is up front which is an interesting dynamic with Jerry Richardson still signing the checks. This could potentially make it easier to negotiate and extend him in the future as the guarantees should be all paid out at this point.  

[CatTower]

Sooo all this does is give us the ability to recoup some of his money if he gets suspended or retires.   13 pages lol.

[Mr. Scot]

7 minutes ago, falconidae said:

Yes there is:

2018 Option Bonus: $10M (must be exercised by 3/19/2018)
If not exercised, the $10M converts to salary, and $11M 2018 salary fully guarantees

That's exactly what that says, and it's why the Panthers didn't have much choice.

Even accepting that though, why convert it to a signing bonus instead of just picking up the option?

You pick up the option as it was, he gets a bonus spread out over four years, but it's still an option on an annual basis and doesn't affect the cap or his future hit.

By converting it to a signing bonus, you make it guaranteed instead of having an annual option and you increase his dead money, destroying the possible out we would have had next season and making him harder to cut.

How is that a good move?

[CatTower]

It looks like the option bonus is 10M, so it's not something that is only partially guaranteed if we cut him after this year.  Thus, it's the same either way.  This just gives us an out if he retires or gets suspended.

[Pimpdaddy]

2 minutes ago, Mr. Scot said:

Even accepting that though, why convert it to a signing bonus instead of just picking up the option?

You pick up the option as it was, he gets a bonus spread out over four years, but it's still an option on an annual basis and doesn't affect the cap or his future hit.

By converting it to a signing bonus, you make it guaranteed instead of having an annual option and you increase his dead money, destroying the possible out we would have had next season and making him harder to cut.

How is that a good move?

...Hurney said so...  he's starting his path to cap destruction...

 

[falconidae]

20 minutes ago, Mr. Scot said:

Even accepting that though, why convert it to a signing bonus instead of just picking up the option?

You pick up the option as it was, he gets a bonus spread out over four years, but it's still an option on an annual basis and doesn't affect the cap or his future hit.

By converting it to a signing bonus, you make it guaranteed instead of having an annual option and you increase his dead money, destroying the possible out we would have had next season and making him harder to cut.

How is that a good move?

Just emailed Jason at Over The Cap, he said it's simply to make it easier to recoup money if Kalil retires or is suspended. He said option bonuses often get converted like this behind the scenes, not sure why this one is public.

I don't know if the option bonus was fully guaranteed at some point- seem to remember that, but can't find it at the moment-got to get off the computer right now, will see if I can find it later. If it is, doesn't matter how they give it to him.

 

 

 

[Chief Keek]

Hurneymania running wild brother!