I see a lot of people freaking out in the Armestead thread due to not understanding how restructures work.
The most simple explanation for a contract restructure is simply taking a portion of a players base salary for a season and converting it into a signing bonus. The player gets their money as the signing bonus at the time of the restructure and reduces how much they are paid throughout the season. In other words, it’s a cash advance which can’t be taken away. This action can be done without player approval.
Since it was reported Armstead is working on a deal this is NOT a basic simple restructuring. It’s most likely to save Miami money.
Some are asking well why would armstead do this and it’s simple. He was already paid out his guaranteed money. If he only wants to come back for this year and retire next year Miami would eat 12 million in dead cap while Miami could also go after that 12 million from armstead as he didn’t fulfill his contract.
It may look something like this that works for both parties such as Armstead trims 6 million off his salary this year saving Miami 6 million making the full 14.8 million guaranteed leaving 10 left for next year in which Miami promised to not try to recover saving Miami 6 million this year and 2 million next year. Another alternative is to add void years and spread that additional 10 million in dead cap into 2 years rather than 1.
Another reason I bring this up is I see a ton of people wondering why Grier hasn’t restructured guys like Hill/Chubb/Ramsey and that’s simple. As stated there’s no player approval needed so it can be done quickly at the drop of a dime. They probably don’t want to restructure too much so they’ll meet with free agents and see who they are getting and how much is needed. Why restructure 50 million when you may only need 30 million plus you had the Howard money hitting in June. You pretty much know who you’re getting during tampering window so I see those restructures being last minute when they need them in order to not kick more than necessary into next years cap.
The most simple explanation for a contract restructure is simply taking a portion of a players base salary for a season and converting it into a signing bonus. The player gets their money as the signing bonus at the time of the restructure and reduces how much they are paid throughout the season. In other words, it’s a cash advance which can’t be taken away. This action can be done without player approval.
Since it was reported Armstead is working on a deal this is NOT a basic simple restructuring. It’s most likely to save Miami money.
Some are asking well why would armstead do this and it’s simple. He was already paid out his guaranteed money. If he only wants to come back for this year and retire next year Miami would eat 12 million in dead cap while Miami could also go after that 12 million from armstead as he didn’t fulfill his contract.
It may look something like this that works for both parties such as Armstead trims 6 million off his salary this year saving Miami 6 million making the full 14.8 million guaranteed leaving 10 left for next year in which Miami promised to not try to recover saving Miami 6 million this year and 2 million next year. Another alternative is to add void years and spread that additional 10 million in dead cap into 2 years rather than 1.
Another reason I bring this up is I see a ton of people wondering why Grier hasn’t restructured guys like Hill/Chubb/Ramsey and that’s simple. As stated there’s no player approval needed so it can be done quickly at the drop of a dime. They probably don’t want to restructure too much so they’ll meet with free agents and see who they are getting and how much is needed. Why restructure 50 million when you may only need 30 million plus you had the Howard money hitting in June. You pretty much know who you’re getting during tampering window so I see those restructures being last minute when they need them in order to not kick more than necessary into next years cap.
