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

[Ace_Aladdin]

2 minutes ago, grimesgoat said:

From Sportrac, the second bullet under Kalil states:

"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"

 

[Mr. Scot]

10 minutes ago, grimesgoat said:

From Sportrac, the second bullet under Kalil states:

"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"

Also from Spotrac

David Newton advised that his cap hit for this year was already 6.9 million and hasn't changed.

[grimesgoat]

1 minute ago, Mr. Scot said:

Also from Spotrac

 

Maybe you can explain the second bullet that I quoted.

I think Hurney is incompetent, but not even he would do something that had no effect on anything just to do it.

[Mr. Scot]

Just now, grimesgoat said:

Maybe you can explain the second bullet that I quoted.

I think Hurney is incompetent, but not even he would do something that had no effect on anything just to do it.

David Newton explained the why, but it didn't involve any cap savings.

Consensus from every source I've seen so far is no benefit for the team, but some for the player.

[pantherclaw]

Can't believe the mass level of inability to read. 

It protects the Panthers in case he retires, they'd be able to get back a portion of the bonus. If not converted, all of the bonus becomes 100% guaranteed. 

It doesn't help the player at all. 

It protects the Panthers in case of suspension or retirement. 

[grimesgoat]

13 minutes ago, Ace_Aladdin said:

CAP is currently at 17-20 million without Cuts  , after cuts/non extensions 27-30 million

- 7 Million for the rookies 

Total 20-23 Million in CAP space

Enough to Extend Norwell and other players with future CAP opening up with Vet players retiring.

 

sportrac has the cap room at 10.3 after signing draft picks.

Cutting coleman, Johnson, and stew nets around 8.2m.

We need K, QB2, S, DE, G, DT, TE2, RB and we have around 20m max (if we want to take it all the way to the limit).

Some of these spots will be drafted, but there just isn't enough money for Norwell.  Time to accept this.

[The Natural]

7 minutes ago, pantherclaw said:

Can't believe the mass level of inability to read. 

It protects the Panthers in case he retires, they'd be able to get back a portion of the bonus. If not converted, all of the bonus becomes 100% guaranteed. 

It doesn't help the player at all. 

It protects the Panthers in case of suspension or retirement. 

Bingo. To an extent this helps cover our butt. It was a terrible contract, no easy way to get out.

[Mr. Scot]

11 minutes ago, pantherclaw said:

Can't believe the mass level of inability to read. 

It protects the Panthers in case he retires, they'd be able to get back a portion of the bonus. If not converted, all of the bonus becomes 100% guaranteed. 

It doesn't help the player at all. 

It protects the Panthers in case of suspension or retirement. 

I think changing 10 million dollars from an option to a guarantee could be considered beneficial to the player.

Making it harder to cut him after this year would fall into that category too.

[grimesgoat]

1 minute ago, pantherclaw said:

Can't believe the mass level of inability to read. 

It protects the Panthers in case he retires, they'd be able to get back a portion of the bonus. If not converted, all of the bonus becomes 100% guaranteed. 

It doesn't help the player at all. 

It protects the Panthers in case of suspension or retirement. 

I agree.

Its also very possible Sportrac understands this contract about as well as the huddle.

But I do not know how else to interpret the following:

"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"

If that 10 mil becomes part of his salary - then the whole thing impacts the 2018 cap.  If it is converted, only 2.5m impacts the cap and the base salary stays at 1m.

I note the sportrac cap hit has always been 6.9m.  I suspect they have always assumed this particular action would be done and baked it into their numbers (i.e. this move was a no-brainer).  Thus, when asked what the impact is, they said "zilch".  It doesn't change their numbers - they always assumed this conversion would take place in lieu of having it all hit the cap at once.

who knows.

 

[thefuzz]

2 minutes ago, The Natural said:

Bingo. To an extent this helps cover our butt. It was a terrible contract, no easy way to get out.

Wrongo.  To an extent, this wasn't a good contract, but we had an out after the 18 season....this move made cutting him after this year much harder.

.

[grimesgoat]

1 minute ago, Mr. Scot said:

I think changing 10 million dollars from an option to a guarantee could be considered beneficial to the player.

Kalil was getting his money either as a bonus or in 2018 salary.  That doesn't change.

But apparently if Kalil retires / gets suspended in 2019, the remaining 7.5m will not count against the cap.

[LinvilleGorge]

Just now, grimesgoat said:

Kalil was getting his money either as a bonus or in 2018 salary.  That doesn't change.

But apparently if Kalil retires / gets suspended in 2019, the remaining 7.5m will not count against the cap.

Salary isn't guaranteed. Signing bonus is. Yes, if Kalil is suspended or retires then he'll have to pay back the bonus money for the future years and it won't count against the cap. But what is the actual likelihood of that occurring? Probably slim to none. Where this hurts us is the ability to release him. If he's released for performance reasons then all of that future signing bonus money accelerates and hits the cap for that league year. That's why converting salary to bonus greatly decreases future cap flexibility and it's a huge part of how Hurney fuged our cap up during his first tenure. 

[Mr. Scot]

2 minutes ago, grimesgoat said:

Kalil was getting his money either as a bonus or in 2018 salary.  That doesn't change.

But apparently if Kalil retires / gets suspended in 2019, the remaining 7.5m will not count against the cap.

If he doesn't, his dead money makes him extremely difficult to cut.

[Mr. Scot]

1 minute ago, LinvilleGorge said:

Salary isn't guaranteed. Signing bonus is. Yes, if Kalil is suspended or retires then he'll have to pay back the bonus money for the future years and it won't count against the cap. But what is the actual likelihood of that occurring? Probably slim to none. Where this hurts us is the ability to release him. If he's released for performance reasons then all of that future signing bonus money accelerates and hits the cap for that league year. That's why converting salary to bonus greatly decreases future cap flexibility and it's a huge part of how Hurney fuged our cap up during his first tenure. 

Correct.

Signing bonus is also paid up front, whereas salary is paid game by game.