I’m trying to understand nfl contracts. You read about players restructuring contracts to clear up cap space. Doesn’t a signing bonus count as cap space.
Edit. Thanks everyone for your answers, I get it now
In: 10
The total value of the contract is evenly divided over all years for the cap hit.
Let’s say you give someone a $20 million dollar bonus and $4 million a year for 5 years. They’re getting paid $40 million over the next 5 years, or an $8M/y cap hit.
However, if after 3 years you trade them, then the new team they go to takes an $8M/y cap hit, but only has to pay them $4M/y. This means if they’re underperforming after a few years, you can dish them out to one of the teams that is more concerned with minimizing pay and has an excess of cap space. However, if they’re living up to potential, then you’ve effectively just paid them $8M/y.
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