Someone explain dead money a little bit

[BigSlizz]

I understand that you want to use it to deter an organization from signing a guy to a big contract and cutting him a year into it. That I understand just fine.

But why, if you've found a team to pay the player's salary via trade, does this still need to apply?

[DEERSPINE GUY]

MONIES I SPENT GOING TO SEE JERRY GARCIA, BOB WEIR AND THE GANG...
WORTH EVERY PENNY I MIGHT ADD....

OH WAIT NOT WHAT YOU MEANT....
NEVERMIND....

[art vandelay]

I thought dead money was just the remainder of a player's signing bonus, which is usually spread out over a few years to lessen the blow. The base salary, which a trade partner agrees to pay, doesn't count as dead money as far as I know.

[BigSlizz]

I thought dead money was just the remainder of a player's signing bonus, which is usually spread out over a few years to lessen the blow. The base salary, which a trade partner agrees to pay, doesn't count as dead money as far as I know.

So it's a penalty for passing on the responsibility of paying the bonus. I guess that makes sense, but does it serve a purpose? Like if it's a negative number against the cap, where's the positive side? I'm just wondering from a credit/debit accounting perspective.

[art vandelay]

So it's a penalty for passing on the responsibility of paying the bonus. I guess that makes sense, but does it serve a purpose? Like if it's a negative number against the cap, where's the positive side? I'm just wondering from a credit/debit accounting perspective.

I think teams actually pay the entire signing bonus up front, even though they spread the cap hit out over a few years. If a player gets traded or cut, however, the remainder of the signing bonus counts against that year's cap instead of being spread out. The same goes for any other money guaranteed at signing. For example, the cap hit for Wentz in 2021 is $9.3MM from his signing bonus, a guaranteed $10MM roster bonus, and $15.4MM in guaranteed base salary. The Eagles already paid the signing bonus. The Colts traded for the remaining $25.4MM, but it counts against both teams' caps.

To my knowledge, the only way to get out of a signing bonus is for the player to actually pay it back. I'd never thought of the dead money from guarantees as a penalty, but it does seem like one when you consider the Eagles have 25 million in dead cap money for a salary that the Colts agreed to pay. I don't know if the CBA is designed this way in order to disincentivize cutting/trading players. I think that past CBAs would have resulted in the Eagles actually paying that $25.4MM, which was why players were so rarely traded.

[RSE]

This is why Joe Banner hated dead money and why won several Salary Cap Championships. Also dead money is only spread out if you choose to. Banner used to take the hit from bonuses up front. This way if he wanted to cut a guy there was no financial penalty.

I have a vague remberance of Banner cutting like seven players one off season and the total dead money hit was something like $25000.

[3rd & Inches]

This is why Joe Banner hated dead money and why won several Salary Cap Championships. Also dead money is only spread out if you choose to. Banner used to take the hit from bonuses up front. This way if he wanted to cut a guy there was no financial penalty.

I have a vague remberance of Banner cutting like seven players one off season and the total dead money hit was something like $25000.

Put some respect on Joe Diesel’s name! Joe once placed a hit on a veteran player who accidentally knocked over his Segway. Well that’s how the legend is told. You see the next day the veteran’s locker was empty except for ten neatly stacked one hundred dollar bills. That was the beginning of the term “dead money” once a player left the team. Joe “Kaiser Söze” Banner!!

[AthensEagle]

I understand that you want to use it to deter an organization from signing a guy to a big contract and cutting him a year into it. That I understand just fine.

But why, if you've found a team to pay the player's salary via trade, does this still need to apply?

This whole thread made me realize that when I'm giving Howie a hard time on cap management, while I may be correct, I actually have minimal understanding of the whole thing.

[Mr. Triple Dip]

This whole thread made me realize that when I'm giving Howie a hard time on cap management, while I may be correct, I actually have minimal understanding of the whole thing.

I am an Accountant by day and will say it is complex and I don't understand much of it either - have always assumed that is why Lurie has guys like Banner and now Howie in charge even though they are not the best talent evaluators. I do think you are correct for giving Howie a hard time this year in particular, he kicked the can down the road and now continues to do it - ideally something you can avoid with better decisions/contracts.

[RSE]

I really believe the Haberdasher was successful at salary cap management by not engaging in it. That is to say, if the cap said the Eagles could spend $X in a given season, that’s what he spent. He didn’t borrow against future years (I.e. spread bonuses out over several years). Frankly it got the Eagles to within a pukestorm of a Lombardi Trophy until Banner was undone by the player who had been his greatest salary cap achievement, TO.

[BigSlizz]

I am an Accountant by day and will say it is complex and I don't understand much of it either - have always assumed that is why Lurie has guys like Banner and now Howie in charge even though they are not the best talent evaluators. I do think you are correct for giving Howie a hard time this year in particular, he kicked the can down the road and now continues to do it - ideally something you can avoid with better decisions/contracts.

I had to take two accounting classes last year. I can’t think of many things I hate more. Maybe Wentz and Howie.