Primer: How Peyton Manning’s incentive-laden contract would affect the Miami Dolphins

[DKphin]

So Volin is saying that if we got Manning we would have to give him the same contract that he was under in Indy? There is no way in Hell I would give a 36yr. old QB that contract. Can the Fins not draw up a new contract? If Manning wants the aforementioned contract, let him find somewhere else to play. I am not mortgaging the long-term success of this franchise for a QB that has had multiple neck surgeries.

So how will an incentive-laden contract for Manning impact the Dolphins’ salary cap situation? Let’s use an overly-simplified contract as an example:

Let’s assume that the Dolphins sign Manning to a 3-year contract with:

* $15 million signing bonus
* $5 million base salary in 2012
* $10 million in easily-reachable performance incentives (playing 10 percent of the team’s snaps, throwing for 100 yards in a game, throwing one touchdown in a game, etc.)
* $8 million in gameday bonuses ($500,000 for every game he is active)
​

Read more:http://blogs.palmbeachpost.com/thed...fect-the-miami-dolphins-salary-cap-situation/

 

[mtlfinfan]

I doubt this article very much.

 

[NorFlaFin]

Lose the 15 signing bonus and we're in business

 

[mnphinfan]

It would make no sense to give him a $15 million dollar signing bonus plus $10 million dollar bonus for throwing for 100 yards or playing in 10% of the offensive snaps. That would mean we are basically giving him a $25 mill for playing in only 1 game and would crush our future cap space. What happens if he gets hurt in week 2 and can't play for the rest of the season? I could see him signing a 4 year deal with a $5 million dollar signing bonus plus a base salary of $5 million. That automatically puts his cap hit for this year at a modest $6.25 million (the $5 million signing bonus is spead out over the cap at $1.25 mill for 4 years). Next I could see him getting $5 mill in achievable performance incentives. This bonus would be for throwing for maybe 3,500 yards and playing in 80% of the offensive snaps which would put him at around 12 games minimum. Add in a games played bonus at $200,000 for each game ($3.2 mill for playing every game) and Mannings total salary for 2012 could be a possible $14.45 million if he played in every game. In my mind this would be a pretty fair deal and wouldn't hamstring the Fins in the future for capspace, especially if we can restructe the contracts of Long, Dansby and Marshall.

 

[AquaInferno]

This is all hypothetical

Sent from my R800x using Tapatalk

 

[Kdawg954]

I think if Peyton wants to cement his legacy as possibly the all time great QB, he can't expect a team to give him close to 30 million and then have them add pieces to keep him healthy and get him to the Super Bowl.

Peyton should say "hey I'll play for $10 million" and use the rest of that to get me a solid RT and to solidify the defense by adding another dominant pass rusher from Wake. Also let me bring Reggie with me and try to get Fleener in round 2.

That's just me though . . . hell he could take over all of the Maroone commericals Dan used to do and take all of Chad Henne's A/C commericals . . . he'll make the money back.

Miami can't sign him for a crazy contract tho.

 

[metalman32060]

So how would it work if he ended up with a incentive based contract and several items are Likely to be Earned (LTBE), therefore they count against the cap this year, but he doesn't reach those incentives ( as mentioned above 3500 yards passing for the year, but is injured in the second game for example) do we get that cap money back next year?

 

[benvolin]

Guys, the numbers are all made up and purely hypothetical. I picked easy, round numbers to illustrate a point.

 

[phinfan13/34]

I think if Peyton wants to cement his legacy as possibly the all time great QB, he can't expect a team to give him close to 30 million and then have them add pieces to keep him healthy and get him to the Super Bowl.

Peyton should say "hey I'll play for $10 million" and use the rest of that to get me a solid RT and to solidify the defense by adding another dominant pass rusher from Wake. Also let me bring Reggie with me and try to get Fleener in round 2.

That's just me though . . . hell he could take over all of the Maroone commericals Dan used to do and take all of Chad Henne's A/C commericals . . . he'll make the money back.

Miami can't sign him for a crazy contract tho.

If that were the case he would just stay in Indie. He wants to make his money, thats why he's leaving.

On the other hand, I dont think $15 mill for playing 10% of the games is a smart choice by the dolphins, I think he'd have to play about 75% of the games for that price.

 

[Kdawg954]

If that were the case he would just stay in Indie. He wants to make his money, thats why he's leaving.

On the other hand, I dont think $15 mill for playing 10% of the games is a smart choice by the dolphins, I think he'd have to play about 75% of the games for that price.

I don't know if that is why he is leaving Indy tho . . . did I miss something to where this is indicated? Or are we just assuming this? I think he would prefer Indy use that first pick on bettering the team around him, not to mention Pollian is not there anymore. Wayne, Saturday are FA's, Freeney could end up cut . . . I mean who is to say the opportunity to win another ring doesn't have a better chance elsewhere (Miami in this case).

You could be right tho, but I think there may be more than money to this.

 

[mnphinfan]

So how would it work if he ended up with a incentive based contract and several items are Likely to be Earned (LTBE), therefore they count against the cap this year, but he doesn't reach those incentives ( as mentioned above 3500 yards passing for the year, but is injured in the second game for example) do we get that cap money back next year?

The signing bonus would count against the cap for every year it is prorated. Say the Fins sign him to a 4 year deal with a 15 million dollar signing bonus. That means no matter if he plays or not he automatically counts for $3.75 mill/year against the cap for the next 4 years. Then if they were dumb enough to give him a $10 mil bonus for playing in 100 snaps or throwing for a measly 100 yards that would automatically count against the cap for next year, no matter if he plays or not. That is not smart business and the reason why they base the incentives on normal play for an entire year and not on 1 or two games worth of stats which this article in implying. You could then have language in the contract stating that any incentives earned this year would be guaranteed for Mannings base salary the next and subsequent years of the contract. Thus basically allowing him to be paid on his achievements for the first year over the length of his contract while not killing your cap space if can't play due to injury, being cut, or retirement.

 

[jason_taylor]

So Volin is saying that if we got Manning we would have to give him the same contract that he was under in Indy? There is no way in Hell I would give a 36yr. old QB that contract. Can the Fins not draw up a new contract? If Manning wants the aforementioned contract, let him find somewhere else to play. I am not mortgaging the long-term success of this franchise for a QB that has had multiple neck surgeries. Read more:http://blogs.palmbeachpost.com/thed...fect-the-miami-dolphins-salary-cap-situation/

this is not true ,,miami DOSENT HAVE TO GIVE PEYTON THE SAME MONEY OR THERE NOT PICKIN UP THE CONTRACT THAT THE COLTS OWE. they will agree on there own contract. and this is 100% .