Levitre Traded to Falcons

Discussion in 'Tennessee Titans and NFL Talk' started by TorontoTitanFan, Sep 4, 2015.

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  1. Chronos

    Chronos Pro Bowler

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    That's what we are already saying, just in different ways.
     
  2. Fry

    Fry Welcome to the land of tomorrow!

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    TIL Thomas Demitrov is a worse GM than Ruston Webster.
     
    • Informative Informative x 1
  3. Finnegan2win

    Finnegan2win hopesfall2win

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    ok ok all this cap talk is hurting my head and no one knows wtf they're talking about

    let's just settle it right now

    levitre is gone and we actually got something in return

    praise baby jesus
     
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  4. Gut

    Gut Pro Bowler

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    No. The signing bonus was paid in full when we signed him. We will pay him NOTHING. But signing bonuses in terms of accounting, don't hit your cap all at once or no one would ever be able to sign a QB to a new contract because they don't have $50mil in cap space to do it. So for accounting/cap purposes, even though you PAY the player his signing bonus when he signs the contract and he has ALL of that money in the bank, they divide the signing bonus amount over the life of the contract in order for large bonuses to be possible.

    So let's say I sign a contract with a $25mil signing bonus and it's a 5 year deal. I get paid the $25mil right now but that cap hit is spread out for 5 years. 25/5=5 so the team takes a cap hit of $5mil per year even though they already paid me. Now you get to pro-rate the signing bonus unless you cut or trade the player before the last year of his contract.

    So if you cut me after the first year of the contract, in year 2 you don't have to pay my salary for the year but you take the rest of my signing bonus as a cap hit. Since there was $20mil left to aborb in cap hit which WAS gonna be spread out at $5mil a year for another 4 years, now it all hits at once so boom, you take a $20mil cap hit but then I'm off your books completely. This cap hit of money you already paid is called 'dead money.'

    In Levitre's case, there is one further complication. The NFL wanted to give teams more flexibility in managing dead money so they created a June 1 deadline. Suppose you want to cut me in year 2 but can't take a $20mil cap hit this year. If you cut me AFTER June 1, you only take this year's prorated amount ($5mil this season) and the rest compiles and hits NEXT year (25mil-10mil=$10mil). This is one of the reasons a lot of Vets get cut AFTER June 1 to make room for the new guys beating them out and teams pushing big cap hits to the following season.

    So for Levitre's case, since we traded him after June 1, we eat his prorated cap for this season ($2.1mil) and the rest gets pushed to next year (2yearsx$2.1mil=$4.2mil). This is DEAD money because it's not money we are paying now, this season or next, just lessens how much we can spend next year. But understand, this bonus was paid to Levitre years ago when he signed the contract. The rest is just accounting!
     
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  5. 520

    520 2020 GOAT CHAMP from 3-7 to champ

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    if someone told me when I woke up either levitee would be traded or I'd win the lottery, I'd start booking year long vacations.
     
  6. TorontoTitanFan

    TorontoTitanFan Pro Bowler

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    Dead money is money that you don't pay (and aren't allowed to pay to anyone) because of previous agreements (almost always pro-rated signing bonuses).

    Think of it like subtracting $X million from your team's salary cap. That's how dead money works.
     
  7. acqua7

    acqua7 Pro Bowler

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    it's not a big deal we are taking the remaining cap hit this/next season...we are plenty under the cap this year.

    Ruston, I'd say redeemed himself for this garbage signing.
     
  8. Fry

    Fry Welcome to the land of tomorrow!

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    So much talk about money that isn't ours...
     
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  9. Thaddeus43

    Thaddeus43 Sunshiner President

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    <------- "IN RUST WE TRUST"
     
  10. theprizdfighter

    theprizdfighter Newb to the 19.5°

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    @Gut for GM

    Unless we trade DMC before the season as well..
     
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