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

[Mr. Scot]

7 minutes ago, falconidae said:

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.

We went from this...

Quote

There is a potential out after the 2018 season with $7.2M in dead cap money if Kalil is released after June 1. While 7.2 million dollars is nothing to sneeze at, that dead cap money actually spreads over 2019 ($2.4M) & 2020 ($4.8M), so if the Panthers part ways with Kalil after 2018, they will actually save $10.35M (5.4%) in 2019 cap space.

...to this.

Everybody knew Kalil was here for 2018.  Now he's guaranteed to be here for at least one more season beyond that.

I'd like to see a better rationale for that than just "well, we can get some money back if he retires".

[AggieLean]

So, after reading the past few pages, the Panthers were pretty much in a position where they had to do this. Gettleman contract was worse than we thought, smh. 

Seems like most in here jumped on Hurney, when he basically had to do this.

[Jon Snow]

5 minutes ago, AggieLean said:

So, after reading the past few pages, the Panthers were pretty much in a position where they had to do this. Gettleman contract was worse than we thought, smh. 

Seems like most in here jumped on Hurney, when he basically had to do this.

That's not how it is at all.  Maybe you should read it again.

[Mr. Scot]

7 minutes ago, AggieLean said:

So, after reading the past few pages, the Panthers were pretty much in a position where they had to do this. Gettleman contract was worse than we thought, smh. 

Seems like most in here jumped on Hurney, when he basically had to do this.

Except they didn't.

Just paying the option bonus as the option bonus it was wouldn't have affected the future cap.

Changing it to a guaranteed signing bonus produces enough dead money in 2019 that Kalil is guaranteed another year beyond 2018.

Option bonuses are not guaranteed.  Signing bonuses are.

He could have been cut post 2018 with relatively little damage.  Now, not so much.

[carpanfan96]

1 hour ago, Mr. Scot said:

Here's where you messed up.

The bonus was already spread out.  The Panthers could have chosen to convert it all to this season, but they didn't.  Instead, they converted it to a signing bonus, which has three effects:

• It makes it guaranteed fully instead of it being an annual option
• It gives Kalil the money up front
• It makes the potential dead money for next year much higher, robbing us of our "out

And may I point out, all of these things are outlined in the link that you quoted.

So congratulations.  You just helped yourself lose an argument.

If they didn't accept the bonus, it converted into salary which is what I've been saying all along. So they decided to keep him around to avoid the cap hit increasing this season. That would have been the non exercise fee which I've discussed. Exercising the bonus and then converting it from option to signing is what the Panthers did because if they hadn't done so his cap hit would have gone up. 

 

My original point was that they had to accept it because of cap issues. My original point is still correct and that article proves it. 

 

Also it wasn't already spread out, that happened when they exercised the option another thing that both articles point out. 

[carpanfan96]

51 minutes ago, Jon Snow said:

That's not how it is at all.  Maybe you should read it again.

That was how it was, stop defending DG. He had an option bonus for 10m and a non exercise for 10m if the Panthers don't exercise the option bonus his cap hit this season would have ballooned over 8m dollars and became fully guaranteed upon not exercising the bonus. 

 

Cap hit with option bonus exercised 6.75

Cap hit with non exercise fee 14.25

[Mr. Scot]

Just now, carpanfan96 said:

If they didn't accept the bonus, it converted into salary which is what I've been saying all along. So they decided to keep him around to avoid the cap hit increasing this season. That would have been the non exercise fee which I've discussed. Exercising the bonus and then converting it from option to signing is what the Panthers did because if they hadn't done so his cap hit would have gone up.

My original point was that they had to accept it because of cap issues. My original point is still correct and that article proves it. 

Again, why convert it to signing bonus instead of just accepting it as an option bonus?

Option bonuses are not guaranteed but signing bonuses are.  As noted by Spotrac, his dead money for next year now destroys the "out" we could have had to cut him after this season.

Why guarantee him another year here?

[carpanfan96]

54 minutes ago, Mr. Scot said:

Except they didn't.

Just paying the option bonus as the option bonus it was wouldn't have affected the future cap.

Changing it to a guaranteed signing bonus produces enough dead money in 2019 that Kalil is guaranteed another year beyond 2018.

Option bonuses are not guaranteed.  Signing bonuses are.

He could have been cut post 2018 with relatively little damage.  Now, not so much.

That's not entirely correct, you have to know the bonus amount, the non exercise fee, buyback options and so forth if it's going to be guaranteed or not. 

 

For example with Kalil he had a 10m option that upon the team exercising became a cap hit of 2.5 m per season the next 4 years. 

 

If declined the team would have had to use it's non exercise fee or trade him basically. 

The non exercise fee in this case was also 10m dollars, but it also fully guaranteed his new salary for 2018 for the amount of 11m in guarantees. 

 

By claiming the option bonus and not using the non exercise portion of his contract language they saved 5m in salary this season as well as 1m in guarantees. 

By converting said bonus into a signing bonus it gives the team the option of recovery if he should retire. 

 

[carpanfan96]

12 minutes ago, Mr. Scot said:

Again, why convert it to signing bonus instead of just accepting it as an option bonus?

Option bonuses are not guaranteed but signing bonuses are.  As noted by Spotrac, his dead money for next year now destroys the "out" we could have had to cut him after this season.

Why guarantee him another year here?

It's the way his option bonus was designed, the team had an out after two seasons by claiming the non exercise fee of 10m. His option bonus upon signing the option would have been guaranteed after the 19th for injury. 

 

Converting it allows them to recover said money if he retires or gets a severe injury. It's the team protecting itself while helping the player out so they get the money early instead of over the next 4 years. 

 

At least as far as I've seen and heard.  I'm waiting to see if I can get a 100% confirmation of this from a few people I've talked with before and the Twitter user in the op. 

[Mr. Scot]

1 minute ago, carpanfan96 said:

It's the way his option bonus was designed, the team had an out after two seasons by claiming the non exercise fee of 10m. His option bonus upon signing the option would have been guaranteed after the 19th for injury.

Converting it allows them to recover said money if he retires or gets a severe injury. It's the team protecting itself while helping the player out so they get the money early instead of over the next 4 years. 

As mentioned before, I'd like to hear a better reason for increasing his future dead money and guaranteeing him another year than "it protects us just in case he retires or gets hurt".

[Fox007]

LOL Hurney gonna Hurney. Why hasn't Stew been cut yet to go along with the other fat we just trimmed? Can't have any good without tons of bad with this poo stain GM.

Or is it still JR? too much ineptitude in this franchise to keep up with. Good Riddance JR when the team is sold and good Riddance when you're fired Hurney. unreal

[Fox007]

Protects us if he retires? roflmao yea man the 28 y/o LT with a free pay day is going to retire.....LOLOL Huddle still Huddlin.

[carpanfan96]

10 minutes ago, Mr. Scot said:

As mentioned before, I'd like to hear a better reason for increasing his future dead money and guaranteeing him another year than "it protects us just in case he retires or gets hurt".

The biggest reason was the increase in cap hit this season, his cap hit would have gone up from 6.75m to 14.25m. 8m in cap increases and 11m of it would have been fully guaranteed as of non exercising the option. 

 

Panthers have more rights for recoupment with Matt Kalil's $10M as a signing bonus instead of an option bonus. No ability to recoup after the 2018 season if the $10M had remained an option bonus. https://t.co/h9rYVB45lE

 

[Mr. Scot]

1 minute ago, carpanfan96 said:

The biggest reason was the increase in cap hit this season, his cap hit would have gone up from 6.75m to 14.25m. 8m in cap increases and 11m of it would have been fully guaranteed as of non exercising the option. 

You see guaranteeing that he'll be on roster next season as a good thing?