Restructuring Goff's Contact Could Save $16.8 Million and Cap Space

[Ram65]

This might have been posted before somewhere in a thread or by itself but, I don't remember reading it. Hard to talk about what the Rams will do this offseason about players without knowing they have this cap money option available.

Lot's of comments on restructuring Goff's contract but, I didn't know much about it. The explanation is below. Basically the Rams can convert his $21 Million 2020 roster bonus to signing bonus over the five remaining years of his contract. Keep in mind they already have $5 million accounted for as signing bonus over the next 4 years. Check my math but, that would add an additional $4.2 Million to the $5 Million already on the books for a large total of $9.2 Million per year signing bonus cap hit. I understand that it fine to defer some cap hits into the future as it bowering cap space with no interest. I assume the Rams can change portions of the roster bonus money to signing bonus. It appears that's what the Rams had this in mind because he is counting $36 Million against the cap in 2020. Knock off $17 Million and you get $19 Million which is about what Carson Wentz will count against the Eagles cap. So things are not as desperate as they seemed.

The latest cap space after increasing the salaries of a player like Kupp and Johnson (playing time bonus) has the Rams at around $20Million.

Add in this $16.8 Million and it is can be around $37 Million before incentives.

Subtract the 2019 bonuses and incentives which are unknown at this time.

Don't have time to add on possible cuts and trades.

Los Angeles Rams can restructure QB Jared Goff’s contract to create $17m in cap space

Are the Rams willing to make the move?

www.turfshowtimes.com

Jared Goff | NFL Contracts & Salaries | Spotrac.com

Jared Goff contract and salary cap details, full contract breakdowns, salaries, signing bonus, roster bonus, dead money, and valuations.

www.spotrac.com

Carson Wentz

Carson Wentz contract and salary cap details, full contract breakdowns, salaries, signing bonus, roster bonus, dead money, and valuations.

www.spotrac.com

FILED UNDER:

• 2019 LOS ANGELES RAMS REGULAR SEASON
• 2020 LOS ANGELES RAMS OFFSEASON
• 2020 NFL FREE AGENCY

Los Angeles Rams can restructure QB Jared Goff’s contract to create $17m in cap space
117
Are the Rams willing to make the move?
By Sosa Kremenjas@QBsMVP Dec 30, 2019, 3:04pm CST
Share this story

• Share this on Facebook (opens in new window)
• Share this on Twitter (opens in new window)
• SHAREAll sharing options

Kirby Lee-USA TODAY Sports
Entering the offseason, the Los Angeles Rams are slated to be one of the more cash-strapped teams in the NFL as Over The Cap projects the Rams to have only $25.4m in cap space, with a boatload of impending free agents to re-sign. As you can see, there are multiple starters from both sides of the ball that are likely to test the market on the list of never-ending upcoming free agents:
2020 LA Rams Free Agents

Player	POS	Type	Outcome
Malcolm Brown	RB	UFA	Re-signed, 2-yr $3.25m
Blake Countess	DB	UFA	Waived
Jared Goff	QB	UFA	Optioned
Tyler Higbee	TE	UFA	Re-signed, 4 yr $31m
Troy Hill	CB	UFA	Re-signed, 2-yr $8.25m
Marcus Peters	CB	UFA	Traded
Aqib Talib	CB	UFA	Traded
Austin Blythe	OL	UFA
Blake Bortles	QB	UFA
Michael Brockers	DL	UFA
Marqui Christian	DB	UFA
Dante Fowler, Jr.	EDGE	UFA
Bryce Hager	ILB	UFA
Cory Littleton	LB	UFA
Mike Thomas	WR	UFA
Andrew Whitworth	LT	UFA
Greg Zuerlein	K	UFA
Morgan Fox	DE	RFA
Jojo Natson	KR/PR	RFA
Adonis Alexander	CB	ERFA
Josh Carraway	OLB	ERFA
Kendall Blanton	TE	ERFA
Chandler Brewer	OL	ERFA
Josh Carraway	LB	ERFA
Marquise Copeland	DL	ERFA
Donte Deayon	CB	ERFA
Greg Dortch	WR	ERFA
Landis Durham	LB	ERFA
Dominique Hatfield	CB	ERFA
Jeff Holland	OLB	ERFA
Jeremiah Kolone	OL	ERFA
Johnny Mundt	TE	ERFA
Jachai Polite	EDGE	ERFA
Coleman Shelton	OL	ERFA
Nate Trewyn	OL	ERFA
Nsimba Webster	WR	ERFA
Ethan Wolf	TE	ERFA
John Wolford	QB	ERFA

Looking at the roster, the Rams have some flexibility as it pertains to creating cap space, though none can create as much space as restructuring QB Jared Goff’s deal after signing him to a mega-extension in September. Restructuring Goff would free up just under $17m in cap space, by essentially taking his massive roster bonus ($21m) and spreading it among the remaining years of the contract:

Spotrac

✔@spotrac
https://twitter.com/spotrac/status/1211490707510321153

The #Rams will almost certainly restructure Jared Goff’s 2020 $21M roster bonus, a move that will clear $16.8M of space, almost enough to cover the $17.8M of dead cap they’ll take on should they find a trade partner for WR Brandin Cooks.http://bit.ly/2KZgpFB

136
10:34 PM - Dec 29, 2019
Twitter Ads info and privacy

52 people are talking about this



It’s a weird topic to be discussing because Goff just signed his extension prior to the season, but the Rams are so cash-strapped that they may not have many options. It doesn’t help that Goff had a down year, but a move like this isn’t made unless the team plans to keep the player as there will be bigger dead money hits in later years in the event of a restructure.
Still, with a lack of options to help clear cap space, restructuring Goff may be the golden ticket to helping the Rams surround him with more talent, ensuring his play can trend upwards once again.
Outside of this potential move, there may be only one certainty as it pertains to creating cap space, and that’s cutting veteran S Eric Weddle. Moving on from Weddle would save the Rams $4.25m, and while that may not seem like much, it could be the difference between losing another starter elsewhere at a less expendable position.

 

[Jacobarch]

Problem is goff has to agree to it. Yeah he didn't play like a top 5 qb. But the rams were the ones that wanted to hurry up and sign him and now they're gonna renegotiate? I doubt his agent goes for it. And let's face it, agents seem to run the players nowadays rather than the other way around

 

[OldSchool]

Problem is goff has to agree to it. Yeah he didn't play like a top 5 qb. But the rams were the ones that wanted to hurry up and sign him and now they're gonna renegotiate? I doubt his agent goes for it. And let's face it, agents seem to run the players nowadays rather than the other way around

This is all accounting maneuvers it wouldn't change how much he gets paid.

 

[PhillyRam]

Exactly... Goff has no input... Its just how the Rams account for his paycheck.. is it bonus money or straight salary.

 

[yrba1]

This is all accounting maneuvers it wouldn't change how much he gets paid.

Yep, it's basically backloading cap usage to later years, would be convenient to signing Ramsey to a new deal. I don't have any issues with Goff's contract, it's Cooks that is a head scratcher for me.

 

[Jacobarch]

This is all accounting maneuvers it wouldn't change how much he gets paid.

True but I gather that players dont like to do it otherwise we'd see it a lot more in the NFL

 

[OldSchool]

True but I gather that players dont like to do it otherwise we'd see it a lot more in the NFL

Teams don’t like it because it pushes the bill down the road. It’s all accounting and doesn’t change what the player collects at all.

 

[CGI_Ram]

I don’t necessarily like the idea.

A man of words tonight. Lol

 

[jrry32]

I expect they'll push some of Goff's roster bonus into future years. If we don't need it, the cap rolls over into the next season.

 

[Ram65]

I'm not sure if the 30% rule applies to Goff's contract. Here is a quote from an article on the Steelers. It states on a contract signed in 2020. The other thing is that Wentz's contract is not staying within the 30% rule. Link in OP.

Steelers Salary Cap, Part 1: Two CBA quirks that will affect how the team does business in 2020

We take a deep dive into the Pittsburgh Steelers salary cap positioning heading into 2020.

www.behindthesteelcurtain.com

The first, the 30 percent rule. What is it? A stipulation in the CBA states that a team cannot pay a player over 30 percent, on a restructured or new contract signed in 2020, from 2020 to 2021, 2021 to 2022, and 2022 to 2023. This also includes restructured deals

 

[Merlin]

Makes sense. Rams are committed to him long term, so kick that can a bit down the road and get a little cap relief.

Main thing for me is Ramsey. Gonna feel a lot better once he's locked up.

 

[96GS#007]

I don't know why Goff wouldn't like it.

My understanding is that the roster bonus is paid in March of each year. If it's converted to a signing bonus, he gets the money immediately. The other benefit is that by getting the money earlier, assuming he invests it wisely, he'll make an extra few years of interest and/or capital gains and/or dividends depending on his investment vehicles of choice.

 

[Ram65]

Link is in original post. Trouble with computer acting slow. Wentz has 1.383 Million salary in 2020 with 15.4 Million salary in 2021. Silmilar bonuses and options. This is not in the 30 % rule. I'm thinking because these contracts were signed in 2019 they won't count for the 30% rule. I'm not sure the league would have approved Wentz's contract if it did.

Why would Demoff and Pastori would block themselves in with a deal that they could not transfer a signifigant roster money to signing bonus when they know they will need more cap space in 2020.

I just want to know what the real options are. We will see.

 

[FarNorth]

A key part of skating close to the edge of cap hell seems to be trying to figure out what the rules are and if you can manipulate them to escape without getting busted.

Glad somebody may know this stuff. Even better that it doesn't have to be me.

 

[CGI_Ram]

At what point do these top heavy contracts “break” the system?

Mahommes gets $40M a year? Aaron Donald about $20M... it looks screwed up.

At what point?

I sure hope the new CBA has an answer to it.

 

[kurtfaulk]

At what point do these top heavy contracts “break” the system?

Mahommes gets $40M a year? Aaron Donald about $20M... it looks screwed up.

At what point?

I sure hope the new CBA has an answer to it.

The minimum salary has to go way up. That's the only way. And fairest way.

How much money do the superstars have to get to be happy the greedy fucks. There's still 50 other players on the team that have to go through all the same shit as them, only worse for the bottom feeders because they can't take a week off if they're banged up. The pressure for them to stay on the team overrides everything else.

.

 

[dieterbrock]

The minimum salary has to go way up. That's the only way. And fairest way.

How much money do the superstars have to get to be happy the greedy fucks. There's still 50 other players on the team that have to go through all the same shit as them, only worse for the bottom feeders because they can't take a week off if they're banged up. The pressure for them to stay on the team overrides everything else.

.

Therein lies the issue. The players association acts in the best interests of the players as a whole. The revenue share increase and subsequent cap increase was to be passed on to the players, and it did. Problem is that it mostly is spent on the top 10% and where it was supposed to provide some income protection for the mid level veteran, it basically made them cost obsolete.
I've always thought that the NBA was on the right track with the Larry Bird rule, allowing teams to go over the cap to re-sign their vet, but we've seen how they learned to circumnavigate that.

Maybe the solution would be in allowing an offset to the cap based on service time & time with a team. For instance, take a Whitworth, say they had some sort of calculation of service time (14 seasons) and time with Rams (3 seasons) allows the Rams to only have to account for (14x3) 42% of his cap hit. He signs a deal elsewhere, its only the 14% service time "discount". In theory, teams would be able to keep the aging veteran who would normally be a cap casualty but leave the player in a position to gamble on himself by going elsewhere