$13mil might go down as dead money, its not the cap hit. Two totally different terms.
Cap hit means what additional cap space will get used if the player is traded or cut.
Cap savings mean how much cap space can be saved after a cut or trade. Dead money might still be there, but there will be a net saving.
Dead Money is the total dead money for the player, regardless of his cap charge. Its the remaining portion of his signing bonus not yet been accounted for plus any guarantees. Revis has $13mil of dead money right now. He's on the team roster for $9mil (6mil base, 3mil prorated signing bonus). Net cap hit is $4mil, most of which can be pushed to 2014 if need be (assuming Jets take the June 1st designation).
Trading Revis before June 1st causes a $13,000,000 charge against the 2013 cap, and they are done with him. Trading him after June 1st leaves $9,000,000 in dead money against the 2014 cap
Jets have a Darrelle Revis dilemma: What to do with the All-Pro cornerback?
Will the Jets trade Darrelle Revis? Or keep him? The decision is complicated. (Photo by John O'Boyle/The Star-Ledger)
By Conor Orr/The Star-Ledger
on March 24, 2013 at 6:30 AM, updated March 24, 2013 at 6:31 AM
The most important decision in Jets history – what to do with Darrelle Revis – is anything but a simple one. Extending his contract with terms attractive to Revis would make him one of the highest paid defensive players in football, a dangerous game to play for a team recovering from a salary cap nightmare. Trading him would ship away the face of the organization, the lynchpin in head coach Rex Ryan’s defense and a vocal leader inside the locker room. Doing nothing would leave Revis’ bargain price tag at $6 million this season, but ensure the Jets would be left with little when Revis hits the open market next year.
With each of these options, comes plenty of grey areas. There are leverage issues, deadlines to meet, value to be determined and strategies to formulate. In order to gain a better understanding of what may be going on behind the scenes, The Star-Ledger surveyed current executives and league insiders as well as analysts and former general managers, some of who requested anonymity to speak candidly about a player on another team.
Setting the course for the next five years of a franchise is never easy, something pragmatic new general manager John Idzik is finding out. Here are a few points to consider along the way.
WHEN WILL HE GO?...
If Revis is traded, a look inside his contract and at the league schedule can provide a few answers as to when it might happen.
The first benchmark, which passed March 16, was a $1 million roster bonus that became fully guaranteed at the close of business that day.
According to Revis’ contract, there are two more $1 million payments he can earn over the summer if he is still on the Jets roster. One, a workout bonus, is payable at the end of June. To earn that bonus, Revis must complete 83 percent of his off-season workouts and 85 percent of the team OTAs.
Another is a reporting bonus for training camp, payable in late July when the Jets arrive in Cortland, N.Y.
Both, according to Joel Corry, a former NFL agent and current contract expert for the National Football Post, represent significant deadlines in the deal. Each time the Jets let one pass, like they did in March, they absorb a higher hit to their salary cap for a player they might eventually lose.
Although it isn’t a firm deadline, trading Revis before or after June 1 makes a difference. Trading him after that day allows the Jets to pay a portion of the salary cap hit in 2013 — $5 million. The accelerants in his deal will push to 2014, and cost the Jets $9 million next season (they absorb $6 million in 2013 if they trade him after the start of training camp because of the reporting bonus).
Trading him before June 1 would leave the Jets with a $13 million charge against the salary cap. The Jets are roughly $13 million under the salary cap as of today, by an unofficial count.
Darrelle Revis reportedly is seeking $15 million per season. But will he be the same after returning from ACL surgery?William Perlman/The Star-Ledger
COMPENSATION AND PITFALLS
Perhaps the most important deadline in a Revis deal, though, is the start of the 2013 NFL Draft. If Idzik wants immediate compensation, maybe an additional first-round pick on top of the Jets No. 9 overall selection, then a trade would have to be done in the coming weeks.
Pinpointing Revis’ worth, though, is far more difficult. He is coming off surgery to reconstruct a torn ACL, and while Adrian Peterson’s comeback from the same surgery has lessened the stigma of that injury, there still is uncertainty as to how well a player will come back from it (see: Terrell Thomas, who has yet to fully recover and play following an ACL tear in 2011).
Although Tampa Bay, a team desperately trying to repair its secondary, has reportedly offered both a first- and second-round pick in 2014, some around the league are curious about the Buccaneers’ enthusiasm, even if it could yield the best cornerback in football.
The aggressiveness of the offer could also make it more time sensitive.
"Teams are now more guarded with their draft picks because the player salary costs are basically slotted," said one league insider who requested anonymity because he is not authorized to speak on behalf of another team. "Who is willing to give up those picks, which are affordable now, for an exorbitant cost that will impact the makeup of your cap?’’
Finding a trade partner to give up a stockpile, and possibly drive the price up even if compensation is delayed a year, would be extremely difficult, according to multiple people with knowledge of the situation.
This is true for two reasons. The first is that Revis will have only a small window before the draft to show how healthy he is to interested teams. Revis’ personal defensive backs coach, Will Sullivan, told The Star-Ledger in February that his goal was to have the corner doing light conditioning and some introductory football-related activity by April.
Revis said as much through a few separate interviews on the NFL Network.
The second is that a team would have an "exorbitant cost" added to its salary cap because it would likely have to sign Revis to a long-term extension.
One league source, who requested anonymity, described Revis’ asking price in such a deal as a "King’s Ransom." Sports Illustrated previously reported that the corner is seeking roughly $15 million per season, solidifying his space as the league’s highest paid cornerback and putting him within an earshot of Buffalo’s Mario Williams. Williams, who is making $16 million per year and $50 million in total guarantees, currently has the biggest deal for a defensive player in the NFL.
According to salary cap tracking website OverTheCap.com, nine teams currently have more than $15 million in cap space for 2013. Tampa Bay is one of them.
WHERE WAITING COULD GO WRONG
In most scenarios, Revis has a de-facto no-trade clause. He could refuse to sign a long-term extension with a team and nullify a deal since a team would not want to trade a large amount for a one-year rental.
As a stipulation in his current deal, he cannot be placed under the franchise tag in 2013, either.
If Idzik enters the season without a trade partner, though, he also runs the risk of allowing Revis to simply bet on himself and hit free agency in 2014 with a much more lucrative market — a potentially higher salary cap and more willing spenders — awaiting him.
There’s a smaller possibility the Jets could get some type of compensation in a trade deadline deal, although it would be a rental of less than a year.
Revis is the league’s highest paid corner on his current deal since Nnamdi Asomugha (five years, $60 million) was cut by the Eagles. But even with no signings advancing the market, a fully healthy four-time Pro Bowl cornerback at the top of his craft could yield top dollar.
"The leverage is on Revis’ side," said Charley Casserly, a former general manager and current analyst with the NFL Network. "I think if the Jets aren’t going to retain him, there’s much more pressure on them."
Almost all the analysts and experts surveyed for this story said they wouldn’t be surprised if Revis is on the Jets for the season opener, but would be very surprised if he had a new contract.
One person familiar with the situation said that the sticking point in any deal with the Jets remains owner Woody Johnson, who, despite public comments to the contrary, isn’t keen on forking over the money for a long-term extension.
Corry, who once worked for firms that represented Shaquille O’Neal, Ronnie Lott and Hakeem Olajuwon, cautioned against those who look too far into a "down" market for cornerbacks.
Just because this year’s free agent class of defensive backs, highlighted by Sean Smith (three years, $18 million) and Aqib Talib (one year, $5 million), was stagnant, doesn’t mean teams won’t open their pocketbooks, Corry said.
"It’s kind of like saying what Alex Smith is getting in compensation is going to have a bearing on Aaron Rodgers new contract," Corry said. "It’s apples and oranges. When Darrelle Revis is healthy — these guys aren’t in the same stratosphere."
As of the league meetings, which ended on Wednesday, there hasn’t been any indication that Idzik has allowed Revis’ agents, Neil Schwartz and Jonathan Feinsod, to negotiate with teams.
Some believe that this could expedite the process by finding suitable partners willing to pay before details are worked out.
The agency did not respond to a request for comment on the matter.
Casserly, who had a 24-year career as a general manager and executive with the Redskins, said this shouldn’t have as big an affect on negotiations as perceived.
When doing similarly structured deals — he used Darrell Green’s contract in Washington as an example — Casserly had a system:
"Once you have a deal done with the team then you let them talk and you put a deadline on them," Casserly said. "You give the
agent and the team a deadline in writing that says ‘you have until this point to make a
"If it’s not made by a certain point, you say they can’t talk anymore and you send a copy (of a memo prohibiting contact) to the league office…the league can enforce that from the point of view of tampering."
NOBODY SAID IT WAS EASY
During the last Revis impasse, a 2010 holdout that eclipsed an upbeat Jets training camp and threw the upcoming season into doubt, the terms seemed so much simpler.
There was still leverage, and plenty of it. There were still deadlines and considerations about how much one player is actually worth. There was even a chapter of Ryan’s book written about the negotiations.
But there was also an open vault, a team so desperate for their star that they would spare no expense. With one AFC Championship Game appearance down and another on the horizon, there was, really, no choice but to sign him.
Now, a new regime faces the consequences of living high, spending lavishly and falling hard. Every detail will matter more than ever.
Conor Orr: email@example.com
Edited by flgreen, 25 March 2013 - 04:04 PM.