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5 (iv)
(3) Any consideration, when paid, or guaranteed, for option years, contract extensions, contract modifications, or individually negotiated rights of first refusal
When/If Miami pays Fiedler's option for 2006, it counts, not before and it's prorated.
(5) The unamortized portion of any signing bonus contained in an NFL Player Contract that is renegotiated to reduce the number of years of such Player Contract shall be included, to the extent attributable to such reduced year or years, in Team Salary at the time of the renegotiation.
This, I believe, states that the amortized bonus from the 2006 season will be equally split between 2004 & 2005, as long as Fielder is on Miami's roster in 2004
My numbers for Fielder:
salary: $3.7 million
amortization: $1.24 million
cap hit: $4.94 million
still have $2 million option for 2006.
If paid:
salary: $3.7 million
previous amortization: $1.24 million
new amortization: $666,666
cap hit: $5,606,000 (increase by the amortization amount)
Not paid and remains with team in 2004(without restructure)
salary: $3.7 million
previous amortization: $1.24 million
portion of 2006 amortization: $620,000
cap hit: $5.56 million
If plain out released: "dead cap" of $3.72 million ($1.24 million x 3 yrs). Original cap hit of $4.94 million. $4.94-$3.72=$1.22 million savings in 2004.
For argument sake: If $2 million option counted in full NOW
salary: $3.7 million
previous amortization: $1.24 million
Option bonus: $2 million
Cap hit: $6.94 million
If then paid per above:
If paid:
salary: $3.7 million
previous amortization: $1.24 million
new amortization: $666,666
cap hit: $5,606,666 (increase by the amortization amount)
represents a savings of $1.333 million.
However, it's really a moot argument. If it counts, you add $2 million to the cap now but save $1.333 million when exercised OR add $666,666 to the cap if it doesn't count and exercised........either way.......YOU END UP EXACTLY THE SAME