Backloaded contracts, I dont understand | FinHeaven - Miami Dolphins Forums

Backloaded contracts, I dont understand

LeftCoastPhin

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Why do they even bother with back loaded contracts if the player gets cut anyway? It confuses me, here is what I understand then someone please fill me in.

The player doesn't care about the back load because he gets his signing bonus up front, it's all good.

The club likes the flexibility of the bonus and knowing they can cut the player before the big money rolls in.

So, why not just make it realistic money, or do they have to much trouble negotiating as it is? My only theory is it's insurance for both parties, for the player he knows he'll get paid big bucks or get cut granting him another opportunity at a big signing bonus. For the team, it gives them a chance to keep the player if they are performing at a high level. But it still seems weird to me when everyone and their brother knows the last 3 years wont be honored on certain deals (Sam Adams for the Raiders) so why bother back loading them with an unrealistic amount? Is there a percentage or something that the signing bonus must be related to the value of the contract? That's the only thing I can think of. Insight anyone?
 
Originally posted by LeftCoastPhin
Is there a percentage or something that the signing bonus must be related to the value of the contract? That's the only thing I can think of. Insight anyone?
exactly, until you cut that player, you are only paying the prorated signing bonus, i.e. and 5 year deal w/ a 5 mil signing bonus you pay $1 mil ag. cap each year. If you cut guy after 2nd year, you take a $3 mil hit ag cap for rest of signing bonus
 
Right, and thanks for the input but that doesn't necessarily answer the question. Or does it and I just dont get it? LOL, anyway, at least you answered.
 
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