How do extensions work?

[WeezyBengal]

(02-01-2023, 02:12 PM)Luvnit2 Wrote: Here is something I posted in another thread. The example I used for extending Tee is an estimate of a minimum of what is needed to extend Tee.

I would cut Boyd, I love him, but he is our 3rd best WR and is proven he is not a #1 or #2 if Chase or Higgins is hurt. Cutting Boyd adds 8.9 million in cap space (1.4 million dead cap).

Take the money and place towards locking up Higgins for next 5 years. Higgins is only a 4 million cap hit for 2023 and then a free agent. Extend Higgins, 5 years for 95 million with 60 million guaranteed. Give him a 50 million dollar bonus (spread out over 5 years or 10 million a year.

Salary - 2023 = 1 million + 10 million bonus = 11 million cap hit
Salary - 2024 = 4 million + 10 million bonus = 14 million cap hit (Higgins has now been paid 35 of the 48 million guaranteed)
Salary - 2025 = 10 million + 10 million bonus = 16 million cap hit (Higgins has now been paid 65 million and reached the 60 million guarantee)
Salary - 2026 - 13 million + 10 million bonus = 23 million cap hit (if cut or traded, 20 million dead cap, but no salary guaranteed)
Salary - 2027 = 17 million + 10 million bonus = 27 million cap hit (if cut or traded, 10 million dead cap, but no salary guaranteed)

In 2023, he would add an addition 7 million of cap space (he is already scheduled for 4 million cap hit) so 11 -4 = 7 million additional
Cutting Boyd would pay for Higgins in 2023 and add 1.9 million in 2023 cap space.
In 2024, cut Mixon - A 2024 cut would add 10.3 million helping to pay for Higgins 14 million cap hit

The Bengals need to find a Boyd and Mixon replacement in 2023 and 2024. Hopefully, player development (Williams) or the draft

The misconception is some fans don't understand how a lot of these long term contracts are written. They key is the upfront bonus teams can pay and then defer the bonus money over the life of the contract. This is why we see cap hits a lot less in the early years and higher in the latter years. The player cares about the guarantee as they means the team cares about the cash outlay and the cap hit (both have minimums to be met to stay in compliance). So it is not an easy to calculate a 5 year 100 million contract extension for 5 years by doing simple math of 100 million divided by 5 years = 20 million dollar cap hit each year.

A great resource is Spotrac. I like it as it has many years of date, shows team by team spend and cap hit (2 different things) and even projects the following year by division with an in depth analytics. For example, the Ravens have 28.8 million in cap space, but they do not have Jackson under contract. The problem the Ravens have is they can't simply extend him to lower their cap hit, they franchise him and they literally have to restructure contracts or cut someone as tag for QB's is 32.4 million in 2023 I believe.

Sorry, for the long post, I love discussing the cap.

I think thats a fair contract for Tee and I can get on board with that, but what's that mean for Burrow, Chase, and the rest of the team? Chase is going to want 5 years 120 million then if Tee gets that deal. You are going to lock up 200 million dollars into WR? I just don't see it.