Ray Mac restructures

[Jikkle]

http://blogs.mercurynews.com/49ers/2014/08/29/49ers-free-up-more-salary-cap-room/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+49ersHotRead+%2849ers+Hot+Read%29

Feels like they are gearing up to extend someone and my guess it'll be Crabtree since that seems like that's their next target.

Also with the Aldon Smith news from a PR standpoint announcing a big extension would help steer the conversation to a more positive light.

[JPurthe1]

Makes sense.


Sent from my iPhone using RealGM Forums

[49rangER]

Love this core of players. Guess it helps when you have had success though lol


(previously h0ckeysk83r)

[arich35]

I love team players

[Ray_Dogg]

I think Crabs is gonna be signed any day now.


Sent from my thumb on the RealGM App.

[49rangER]

I think Crabs is gonna be signed any day now.


Sent from my thumb on the RealGM App.

That's what I'm thinking. Kap gave up a lot of money with his deal. Pay him back with Crabtree


(previously h0ckeysk83r)

[clyde21]

I love team players

Restructuring doesn't mean Ray Mac is getting less money. All they do is convert some of the base salary into a signing bonus and prorate it over the course of the contract. That signing bonus money becomes guaranteed over the remaining years.

[49rangER]

I love team players

Restructuring doesn't mean Ray Mac is getting less money. All they do is convert some of the base salary into a signing bonus and prorate it over the course of the contract. That signing bonus money becomes guaranteed over the remaining years.

It helps our cap....these guys don't have to do anything if they don't want too. Sometimes money up front is harder in the future for them later.

Love these guys. Lots of team players helping the cap which is the big point here.


(previously h0ckeysk83r)

[Tomikcon1971]

Meanwhile.......Boone is still an a-hole.

[supreme81]

I love team players

Restructuring doesn't mean Ray Mac is getting less money. All they do is convert some of the base salary into a signing bonus and prorate it over the course of the contract. That signing bonus money becomes guaranteed over the remaining years.

It helps our cap....these guys don't have to do anything if they don't want too. Sometimes money up front is harder in the future for them later.

Love these guys. Lots of team players helping the cap which is the big point here.


(previously h0ckeysk83r)

It helps in the short term but in the long term it hurts. I'm not happy about restructuring so many contacts as of late. That is why we were in cap hell at the end of the Young era. I hope this isn't a trend we continue.

Sent from my SAMSUNG-SGH-I747 using RealGM Forums mobile app

[clyde21]

I love team players

Restructuring doesn't mean Ray Mac is getting less money. All they do is convert some of the base salary into a signing bonus and prorate it over the course of the contract. That signing bonus money becomes guaranteed over the remaining years.

It helps our cap....these guys don't have to do anything if they don't want too. Sometimes money up front is harder in the future for them later.

Love these guys. Lots of team players helping the cap which is the big point here.


(previously h0ckeysk83r)

Yes it helps our cap, but that doesn't mean it isn't also beneficial for the player. Let's say Player X has 10mil due in base salary this year and has two more years left on his contract (3 total). They ask him to convert 9mil of it into signing bonus which you can prorate across the contract. That means he gets 3mil in signing bonus in year 1, 3mil in year 2, and 3mil in year 3.

Why is this beneficial for the player? Signing bonus becomes guaranteed money, and now he'll get a guaranteed 3mil each of the next three years even if he gets cut.

Why is this beneficial for the team? Because of instead of the 10mil cap hit, they only count 4mil (the 1mil left over plus the 3mil signing bonus). The team therefore saves 6mil this year to use on other contracts.

Ray McDonald isn't doing this out of the goodness of his heart. He's doing it because it's also the right business decision for him.

[imac_21]

I love team players

Restructuring doesn't mean Ray Mac is getting less money. All they do is convert some of the base salary into a signing bonus and prorate it over the course of the contract. That signing bonus money becomes guaranteed over the remaining years.

It helps our cap....these guys don't have to do anything if they don't want too. Sometimes money up front is harder in the future for them later.

Love these guys. Lots of team players helping the cap which is the big point here.


(previously h0ckeysk83r)

There is nothing noble about what McDonald did. He took non-guaranteed salary and turned it into bonus money (getting a cheque for a few million dollars before he left the facility), and he made it more difficult to cut him later in the contract by increasing the potential dead money.

It just so happens that this helps the team as well, but basically the question he could have been asked was

"Hey Ray, do you want us to guarantee you about 2.5 million dollars, write you a cheque right now, and give you better job security?"

Who says no to that?

[clyde21]

I was gonna +1 you imac until I saw "cheque."

[imac_21]

Restructuring doesn't mean Ray Mac is getting less money. All they do is convert some of the base salary into a signing bonus and prorate it over the course of the contract. That signing bonus money becomes guaranteed over the remaining years.

It helps our cap....these guys don't have to do anything if they don't want too. Sometimes money up front is harder in the future for them later.

Love these guys. Lots of team players helping the cap which is the big point here.


(previously h0ckeysk83r)

It helps in the short term but in the long term it hurts. I'm not happy about restructuring so many contacts as of late. That is why we were in cap hell at the end of the Young era. I hope this isn't a trend we continue.

Sent from my SAMSUNG-SGH-I747 using RealGM Forums mobile app

Two thoughts on this.

First, in the past we were re-structuring old players contracts who were not going to see the end of them. Ray Mac is signed for through 2015 with an option in 2016. Odds are he plays that contract out. Ditto for Bowman playing his out. We got in trouble when we were re-structuring BY every year, and Norton every year, and Deese every year. If we were re-structuring Gore and Cowboy and Boldin I'd feel differently.

Second thing is that contract structures have changed a lot in the last 15 years and teams have gotten away from big signing bonuses and escalating base salaries. It used to be a player would have a base salary of 6.5M and would restructure it down to 750k and have almost 6M in potential dead money. Ray Mac's restructure creates a maximum potential of 1.7M in dead money. And that's if he gets cut next offseason.

[imac_21]

Restructuring doesn't mean Ray Mac is getting less money. All they do is convert some of the base salary into a signing bonus and prorate it over the course of the contract. That signing bonus money becomes guaranteed over the remaining years.

It helps our cap....these guys don't have to do anything if they don't want too. Sometimes money up front is harder in the future for them later.

Love these guys. Lots of team players helping the cap which is the big point here.


(previously h0ckeysk83r)

Yes it helps our cap, but that doesn't mean it isn't also beneficial for the player. Let's say Player X has 10mil due in base salary this year and has two more years left on his contract (3 total). They ask him to convert 9mil of it into signing bonus which you can prorate across the contract. That means he gets 3mil in signing bonus in year 1, 3mil in year 2, and 3mil in year 3.

Why is this beneficial for the player? Signing bonus becomes guaranteed money, and now he'll get a guaranteed 3mil each of the next three years even if he gets cut.

Why is this beneficial for the team? Because of instead of the 10mil cap hit, they only count 4mil (the 1mil left over plus the 3mil signing bonus). The team therefore saves 6mil this year to use on other contracts.

Ray McDonald isn't doing this out of the goodness of his heart. He's doing it because it's also the right business decision for him.

Not quite. If it's a signing bonus, it counts 3M against the cap for those 3 remaining years (assuming the player is on the roster), but he leaves the facility with a cheQUE for 9M when he signs the contract.

The logic behind the cap accounting for it is that all money a player receives has to count against the cap. Signing bonuses get prorated so teams don't have to manage 25M cap hits in year 1 (or didn't, as the 25M signing bonus appears to be a thing of the past). But if the player gets cut, all the money he has already received has to count against the cap, so the unaccounted for, pro-rated portion of the contract is accelerated.

[imac_21]

I was gonna +1 you imac until I saw "cheque."

As I typed it I thought about spelling it in American, but decided to culture some of you instead.

[supreme81]

It helps our cap....these guys don't have to do anything if they don't want too. Sometimes money up front is harder in the future for them later.

Love these guys. Lots of team players helping the cap which is the big point here.


(previously h0ckeysk83r)

It helps in the short term but in the long term it hurts. I'm not happy about restructuring so many contacts as of late. That is why we were in cap hell at the end of the Young era. I hope this isn't a trend we continue.

Sent from my SAMSUNG-SGH-I747 using RealGM Forums mobile app

Two thoughts on this.

First, in the past we were re-structuring old players contracts who were not going to see the end of them. Ray Mac is signed for through 2015 with an option in 2016. Odds are he plays that contract out. Ditto for Bowman playing his out. We got in trouble when we were re-structuring BY every year, and Norton every year, and Deese every year. If we were re-structuring Gore and Cowboy and Boldin I'd feel differently.

Second thing is that contract structures have changed a lot in the last 15 years and teams have gotten away from big signing bonuses and escalating base salaries. It used to be a player would have a base salary of 6.5M and would restructure it down to 750k and have almost 6M in potential dead money. Ray Mac's restructure creates a maximum potential of 1.7M in dead money. And that's if he gets cut next offseason.

Valid points imac and you are right we were restructuring old players that wouldn't see the end of their deals but I don't know that was a bad time in our history and it just makes me cringe when I see the FO restructure a contract even though I know the FO is much better with the cap then it once was.