Are the Chicago Bears Prepping to Go Young Full Throttle?

Discussion in 'Chicago Bears' started by JustAnotherBearsFan99, Feb 17, 2014.

  1. Bearstuff

    Bearstuff Yes, in the woods.
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    Perhaps the no cut now is motivated by attempts to trade Mr. Peppers.
     
  2. BSBEARS

    BSBEARS Pro-Bowler

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    This is how I understand it.
    So lets look at the Cutler deal: From over the cap.com
    7 year 126.7million which is what the cap number adds up to from 2014 to 2020

    upload_2014-2-19_18-18-15.png


    Now lets say we give Jay a 20 million prorated bonus. This is averaged over 5 yrs. so he gets a 20 million dollar check ( sweet cant imagine by the way) and the bears prorated bonus is 4 million a year for 5 years. Since Jay has the 20 million we can apply it to his base as we chose even though in the books it is a 4 million dollar hit.. so for arguements sake we could put his base salary at 2.5 million for 2014 + the 20 million bonus and he has his 22.5 million. The cap hit would we 2.5 million + 4 million (prorated 20) for a cap hit of 6.5 million. Thus freeing up 16 million dollars this yr.

    Problem with above scenario is the following 4 yrs his cap hit would increase the 4 million.

    Thus they may choose to apply 8 million to yr 1 for a cap saving of 4million, and 3 million to the 2nd year which would increase the cap hit by 1 million for that yr... they would still have 9 million to adjust base salary with. I am sure they could play with the base some as well but do not no the details. Generally speaking though you have that 20 million paid up front to apply to the base as you chose but it counts 4 million per year against the cap. So if you want more cap space apply more than 4 million towards the cap and if you have cap space apply less than 4 million and it will raise the cap hit for the given yr. Normally the base is agreed to with the prorated bonus factored in so this is a little different and not sure if the base remains fixed or if some wiggle room on that also as long as the 126.7 million is paid over time.

    38 million is guaranteed so in theory we could walk away from Jay in 2 yrs and paid him 22.5 million in 2014 per above chart and 15.5 million in 2015 which equals the 38 million guaranteed.
    upload_2014-2-19_18-52-21.png

    Guaranteed shown as dead money. If we prorate as in above example we would still take the 4 million cap hit for 5 yrs beginning the yr the bonus is paid so the bonus is like insurance to they player because you are paying some amount to them anyway so if it costs you the same amount of money to sign there replacement it is sometimes wiser to keep what you have.


    Hope this helps. I am not an accountant or nothing so if any accountants out there you will not upset me with any clarifications
     
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