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View Full Version : Giants' Hakeem Nicks, David Diehl, & Chris Snee Hit Contract Escalators



RoanokeFan
01-31-2013, 04:09 PM
http://www.giants101.com/2013/01/31/new-york-giants-hakeem-nicks-david-diehl-and-chris-snee-hit-contract-escalators/

Excerpt: "The New York (http://www.giants101.com/tag/new-york/) Giants are a projected $4.7 million over the salary cap (possibly more depending on what you read). With an additional $5 million of cap hits coming up after signing the team's draft picks, Big Blue has to clear around $10+ million of cap space between now and the start of training camp. That's without signing any free agents.

Although that sounds like a monumental task, it's doable given the amount of veterans on the roster that are primed to restructure their contracts. However, with Hakeem Nicks (http://www.giants101.com/tag/hakeem-nicks/), Chris Snee (http://www.giants101.com/tag/chris-snee/) and David Diehl each hitting escalators in their current deals (http://nbcsports.msnbc.com/id/32398219/ns/sports-nfl/), that task gets a little tougher.

Escalators can come from multitude a number of factors. Most of them are performance based and can result from gaining a certain number of yards, playing a minimum number of snaps, winning a certain award, playing a particular position or any one of a seemingly endless list of possibilities. There is no telling exactly why each of the aforementioned players will see an increase in their 2013 salaries, but they will cause the Giants salary cap number to be $975,000 higher than it otherwise would have been.

Wide receiver (http://www.giants101.com/tag/wide-receiver/) Hakeem Nicks (http://www.giants101.com/tag/hakeem-nicks/) will see his 2013 base salary raise from $2.425 million to $2.725 million after hitting escalators in his rookie contract (http://www.giants101.com/tag/contract/). Right guard Chris Snee (http://www.giants101.com/tag/chris-snee/) will earn an additional $250,000 next season, which pushes his base salary to $6.7 million. Lastly, and perhaps most surprisingly, right tackle David Diehl is slated to earn $4.475 in 2013 after earning $375,000 in escalators. Diehl is expected to restructure before the beginning of next season, or else is unlikely he returns to the team." Read more...

Toadofsteel
01-31-2013, 04:26 PM
Which of our players under contract in 2013 are cut-friendly? I know TT is becuase he can just be voided on the spot with zero cap hit thereafter, but who else?

Flip Empty
01-31-2013, 04:57 PM
I wasn't aware that they offered up escalators for poor performances.

Which of our players under contract in 2013 are cut-friendly? I know TT is becuase he can just be voided on the spot with zero cap hit thereafter, but who else?
None with zero cap hit, but Canty and Boley are among the more "cuttable" players.

RoanokeFan
01-31-2013, 06:20 PM
I wasn't aware that they offered up escalators for poor performances.

None with zero cap hit, but Canty and Boley are among the more "cuttable" players.

As is Bradshaw

jomo
01-31-2013, 06:53 PM
Lol on the Diehl escalators. He has given alot to this team but if we cut him, no one would notice. This may be the moment to grab the low hanging salary cap fruit.

BigBlueAllDay
01-31-2013, 07:46 PM
T2 is very cuttable with only a $750K cap hit and the Giants will most likely avoid his $6 million 2013 option bonus. He's getting a completely new contract or he's gone.

Captain Chaos
02-01-2013, 05:20 AM
Diehl is likely gone Snee could be restructured and Nicks contract isn't bad for a healthy WR of his caliber. I think Boley and potentially Webster could join Diehl to create some cap space. Of course you have to have players to step up, LB we're OK and Brewer is a key (don't have to sign another Tackle); however, we have a dearth of CBs. Webster will be a tough decision.

Redeyejedi
02-01-2013, 07:12 AM
Which of our players under contract in 2013 are cut-friendly? I know TT is becuase he can just be voided on the spot with zero cap hit thereafter, but who else? I dont like this belief that restructuring can solve everything. U still have to pay those players. Eventually u will get tons of un-cuttable contracts when u need to reup someone like JPP and there is no money or u have to let go 3 or 4 quality depth players. Giants should of cut the overpaid guys last year. I know they were trying to repeat but they are digging a hole now

Kruunch
02-01-2013, 07:35 AM
I dont like this belief that restructuring can solve everything. U still have to pay those players. Eventually u will get tons of un-cuttable contracts when u need to reup someone like JPP and there is no money or u have to let go 3 or 4 quality depth players. Giants should of cut the overpaid guys last year. I know they were trying to repeat but they are digging a hole now

Restructuring a contract doesn't mean just rolling up a percentage into a signing bonus. It's also what they call it when they want to pay a player less (as will probably be the case with DD in 2013).

Also you have to believe that the Giants FO isn't doing anything in a vacuum. They understand (better than us I should think) that there are consequences down the road and they have access to as many calculators as they need to make the contracts they do sign, work.

Also I believe there is a cap bump due in 2014, which many don't take into account.

gumby74
02-01-2013, 08:54 AM
I dont like this belief that restructuring can solve everything. U still have to pay those players. Eventually u will get tons of un-cuttable contracts when u need to reup someone like JPP and there is no money or u have to let go 3 or 4 quality depth players. Giants should of cut the overpaid guys last year. I know they were trying to repeat but they are digging a hole now

True, but we still have let's say a 4-5 year window (What's left of Eli's career) to win another SB. After that time, we'll be in rebuilding mode anyway. Either we're going to suck less with no salary cap casualities, or we're going to suck a ton, with lots of salary cap casualties. So restructuring during times like this, I have no problems with. We're in win now mode.

Flip Empty
02-01-2013, 08:56 AM
Also I believe there is a cap bump due in 2014, which many don't take into account.
It isn't expected to increase by much.

Kruunch
02-01-2013, 09:06 AM
It isn't expected to increase by much.

It's still negotiable. The owners fight with themselves constantly on overspending but I'm willing to bet that the Joneses and Snyders of the league will tip the cap up again.

Just my opinion based on nothing but the human pension for greed.

GiantRoc
02-01-2013, 04:02 PM
I think we will be surprised at who will be let go this off-season. We have a history of loyalty to players, but that has to reach a critical mass at some point. I think that point is now. Unless some of the older players are willing to take pay cuts as opposed to restructuring, they will have to be let go. If we don't go that route, the franchise will return to the depths of the 70's. Nicks is worth his pay, (if he stays healthy [big if I know]). Diehl must take a cut or go. Snee has been great and is now still good. close to $7 mil seems like a lot of money for him. I think we may see Boley and Webster go. TT is a big risk as well. I honestly think we will lose a surprising number of players. It will shock and hurt us, but in the long run, we will recoup faster.

Edit: Yes I think Cruz is a possible loss, if he demands money we don't have. Hate to see him go, but a huge contract for him could really cripple the team for years to come.

CowboysSuck
02-01-2013, 04:17 PM
I never understood why cutting a player results in a "cap hit". So if we just flat-out cut David Diehl, we dont gain back the entirety of what we were going to pay him this season? What, it only helps us out with like 60 or 70% or something?


So say we cut Bradshaw. Hypothetically lets says he is due for 4million this year. So, theoretically we would gain an extra 4million in cap space, no? In reality is it only like 3 million we free up? Someone explain this to me, please!!

jomo
02-01-2013, 04:23 PM
I never understood why cutting a player results in a "cap hit". So if we just flat-out cut David Diehl, we dont gain back the entirety of what we were going to pay him this season? What, it only helps us out with like 60 or 70% or something?


So say we cut Bradshaw. Hypothetically lets says he is due for 4million this year. So, theoretically we would gain an extra 4million in cap space, no? In reality is it only like 3 million we free up? Someone explain this to me, please!!Trying to make this as simple as possible. When a player signs and takes a big bonus up front, that bonus (for cap purposes) is spread across the entire contract. So if it is a 10M bonus and a 5 year contract plus a salary of say $3M per year. The team is charged the $3M each year plus $2M additional for 1/5th of the bonus equalling a $5M hit against the cap. If the player is released before the end of the contract, all of the remaining bonus is charged against the cap immediately. So in the example I just gave, if we cut the player in year 2, we lost the $3M salary but will be hit with an $8M charge against the cap in that year representing 4/5ths of the $10M signing bonus. It is more complicated that I described but hopefully this gives you an idea of how we can find ourselves in unusual cap situations.

BlueBlooded1979
02-01-2013, 05:00 PM
Trying to make this as simple as possible. When a player signs and takes a big bonus up front, that bonus (for cap purposes) is spread across the entire contract. So if it is a 10M bonus and a 5 year contract plus a salary of say $3M per year. The team is charged the $3M each year plus $2M additional for 1/5th of the bonus equalling a $5M hit against the cap. If the player is released before the end of the contract, all of the remaining bonus is charged against the cap immediately. So in the example I just gave, if we cut the player in year 2, we lost the $3M salary but will be hit with an $8M charge against the cap in that year representing 4/5ths of the $10M signing bonus. It is more complicated that I described but hopefully this gives you an idea of how we can find ourselves in unusual cap situations.

If there is no March bonuses then you can designate him a June 1 cut and spread the cap hit out over 2013 and 2014.

jomo
02-01-2013, 05:36 PM
If there is no March bonuses then you can designate him a June 1 cut and spread the cap hit out over 2013 and 2014.Except in leap years.

BuffyBlueII
02-01-2013, 05:40 PM
True, but we still have let's say a 4-5 year window (What's left of Eli's career) to win another SB. After that time, we'll be in rebuilding mode anyway. Either we're going to suck less with no salary cap casualities, or we're going to suck a ton, with lots of salary cap casualties. So restructuring during times like this, I have no problems with. We're in win now mode.

We are in win mode now and need to not just make the “sound” cap decisions but also the players that are just bad like David Diehl. Double D has become a hinderance to this team. Also, I think Eli has another 7-8 left on his career.

GiantRoc
02-01-2013, 05:54 PM
I think the rational behind the "cap hits" is to keep teams from loading up on top players and spreading the big money down the road. So teams won't stock up for a championship just to cut guys before the meat of the pay comes. It basically is there to protect player salaries and to give them some kind of job stability. It's a pain, but the most fair thing for the players.

giant-4-life
02-01-2013, 11:19 PM
I think the rational behind the "cap hits" is to keep teams from loading up on top players and spreading the big money down the road. So teams won't stock up for a championship just to cut guys before the meat of the pay comes. It basically is there to protect player salaries and to give them some kind of job stability. It's a pain, but the most fair thing for the players.

No cap hits are due to market fairness. large markets like ours has a hue advantage over small cleveland-like markets.

a cap is in place so the big teams can't bogart all the good players and free agency keeps that in check as well.

GiantRoc
02-02-2013, 01:25 PM
No cap hits are due to market fairness. large markets like ours has a hue advantage over small cleveland-like markets.

a cap is in place so the big teams can't bogart all the good players and free agency keeps that in check as well.

Yes, the caps are in place to help small market teams. If there was no "cap hit" for huge salaries, players could be offered huge back loaded salaries and then get cut before they get the big payoff at the end of the contract. Any team, even small market teams, could offer huge money down the road, and then cut the player before he gets paid. The hits may also serve to keep salaries at a reasonable level due the effect it has making teams essentially pay for players they no longer have on their roster. The cap does help both the small market teams and the players from big money teams taking advantage. Otherwise the NFL would look like MLB with the same handful of teams always going to the playoffs.

dezzzR
02-02-2013, 04:35 PM
They should fix the escalators at Giants stadium first.