Eddie, the speed & efficiency with which you
grasp the salary cap & Dak's new contract is
impressive. Myself, the only course I flunked
in college was Finance & I've never been able
to grasp such matters well. I'm at heart a (dare
I say the word) socialist. (-:
Anyway, here's overthecap's updated assess-
ment of Dak's new deal:
2021 Salary Cap Charge: $22,200,000 (10.68% of cap)
2021 Cash Payout: $75,000,000 (34.07% of spending)
2021 Cash to Cap Ratio: 3.38
Contract Value: $160,000,000 ($40,000,000 APY)
Fully Guaranteed Money: $95,000,000
Contract Ranking: 2/115 at QB
Here's their projection of Dak's salary cap impact
and cap% year-by-year over the next 3 years (I
have no earthly idea where they get these per-
centages from as the final salary cap for 2021
hasn't been arrived at to the best of my know-
ledge, & future salary caps are unknowable as ...
... they depend on TV deals yet to be negotiated,
but hey, overthecap is basing their percents on
something they think is reasonable I suppose):
2022 - Cap Number $33,200,000 Cap% 14.6%
2023 - Cap Number $44,200,000 Cap% 18.3%
2024 - Cap Number $47,200,000 Cap% 18.4%
I hope, for the Cowboys' sake as well as Dak's
sake, that Dak gets the Cowboys at least 1
Super Bowl win, hopefully more.
On Tuesday, March 9, 2021 at 12:35:49 AM UTC-6, Eddie Grove wrote:
.> Eddie Grove <eddie...@hotmail.com
.> > DLS S <dls...@gmail.com
.> >> 1st 3 years average 42 million bucks...
.> >> And he ain't won a thing...
.> >> Shouldn't Rogers and Mahomes get 50 million and Brady 100 million a year???!
.> > I told you $40M/yr was the starting point.
.> > All I've seen in addition is $75M in first year, and $126M guaranteed.
.> > Essentially, this contract is *3 year $126M fully guaranteed*, with a
.> > fourth year option the team will tear up, either cut or restructure.
.> > The option is to get a 4th year at a "reasonable" $34M salary, but to
.> > accept a $50.5M cap hit that year followed by free agency. I don't see
.> > that happening.
.> > You can call this either $40M APY or $42M APY depending upon your viewpoint.
.> > First year should be $9M + $66M/4 = $25.5M cap hit.
.> > The next two years average $42M cap hit each.
.> > The fourth year would be $50.5M cap hit, but won't happen.
.> > If they cut him after 3 years, $16.5M in dead money.
.> > There's a decent chance they restructure a year from now, converting the
.> > 2nd year's salary into a second signing bonus, spread the cap hit over 3
.> > years to make years 2 and 3 more affordable. If they defer say $13.5M in
.> > cap to year 4, they will later have the choice of $64M cap hit year 4 or
.> > cut with $30M in dead money or restructure with Dak having 10 times the
.> > leverage he had just now.
.> > All numbers assume I can do arithmetic, skills diminishing every year.
.> The whole link content is well worth reading.
.> "At a minimum, Prescott has a three-year, $126 million deal. With no tag
.> available in 2025, the Cowboys will surely try to convert the last year
.> of the deal into a new contract. If not, he gets $160 million over the
.> next four years. That’s $29.3 million more than Mahomes will make over
.> the next four years, and he’ll still be under contract for seven years
.> after that."
.> It there are fake voidable years involved that the earlier reports did
.> not mention. Jerry got his 6 year contract, in a way. The salaries are
.> 2021 $9M
.> 2022 $20M
.> 2023 $31M
.> 2024 $29M + $5M bonus
.> 2025 void
.> 2026 void
.> That means the first year cap hit is $9M + $66M/5 = $22.2M.
.> One important point is that signing bonuses are amortized over a maximum
.> of 5 years. The 6th void year means their intent is to convert future
.> salaries into signing bonuses later. So whatever cap numbers come out,
.> they will change in a year and/or in 2 years when the $20M and/or $31M
.> are partially converted into signing bonuses.
.> I see the contract as, essentially, $126M over 3 years, followed by
.> possible extensions, culminating in an unimaginable dead cap hit when
.> they move on from him. Dak will be able to parlay the impending dead cap
.> hit into immense leverage in any negotiations about extensions.