Jump to content
Want to remove all ads? ×

If Acquired, Rodgers Cap Numbers are not what they seem

choon328

By choon328
in NY Jets Forum

 Share

Recommended Posts

choon328

choon328

Posted
Posted

https://www.cbssports.com/nfl/news/agents-take-how-aaron-rodgers-future-decision-affects-the-packers-bottom-line/

The future Hall of Famer could retire, be dealt or stay put; all options pose salary cap problems for Green Bay

All options are on the table for quarterback Aaron Rodgers after the Packers' season came to end with a 20-16 loss to the Lions in Sunday night's regular-season finale. The 39-year-old said during a postgame conference he was undecided about returning to Green Bay but wouldn't have any regrets if he retired. Rodgers indicated he wouldn't hold the Packers hostage by dragging out his decision. He also acknowledged the possibility of Green Bay wanting to give 2020 first-round pick Jordan Love a chance to start, meaning he would have to play elsewhere to continue his football career.

Rodgers became the NFL's first $50 million-per-year player last March once he decided he wanted to remain with the Packers rather than try to force a trade. The contract is widely considered to be $150.815 million over three years although there are two additional below market years (2025 and 2026) in the deal. Rodgers established new standards for guaranteed money in football contracts with $150.665 million in total guarantees and $101.515 million fully guaranteed at signing until Deshaun Watson's fully guaranteed, five-year, $230 million contract with the Browns shattered those marks a couple of weeks later.

Rodgers is scheduled to make $59.515 million in 2023 -- $59.465 million of the $59.515 million is fully guaranteed.

The Packers used one of the NFL's more complex contract structures with Rodgers. Initially, Rodgers' 2023 base salary is a fully guaranteed $59.465 million. A $58.3 million payment is required to exercise an option for Rodgers' 2025 contract year worth $20.9 million to drop his 2023 base salary to a fully guaranteed $1.165 million. The window to exercise this option is the first day of the 2023 league year (March 15) until a day before Green Bay's first 2023 regular-season game in September.

From a salary cap standpoint, the presumption is option years will be picked up. Option bonuses are prorated over the life of a contract (up to a maximum of five years), including the option years, beginning in the league year when the option is exercised. This means the $58.3 million option bonus is prorated on the salary cap at $14.575 million annually from 2023 through 2026. 

Rodgers is counting on Green Bay's 2023 salary cap at $31,623,570. His cap number consists of $8.16 million in proration from his fully guaranteed $40.8 million 2022 roster bonus, $14.575 million in option bonus proration, the reduced $1.165 million base salary, a $50,000 workout bonus and $7,673,570 of preexisting bonus proration from previous Packers contracts.

Retirement

Rodgers would be forfeiting his rights to the fully guaranteed $59.465 million by retiring. He insisted that his decision wouldn't be influenced by the money because of the generation wealth he has accumulated from playing football. Rodgers has made over $300 million from his NFL player contracts.

The Packers would have $40,313,570 of dead money, a salary cap charge for a player no longer on the roster, with Rodgers retiring. The dead money would consist of $32.640 million in roster bonus proration and the $7,673,570 of 2023 bonus proration that already existed before Rodgers' new deal. 

The $40.8 million was specifically designed by Rodgers' camp to be a roster bonus. Unlike signing bonus, the Packers don't have rights of recoupment for any type of contract breach, including retirement, after the 2022 league year with the roster bonus.

Green Bay isn't in the best position to absorb an additional $8.69 million of 2023 cap charges relating to Rodgers. There are $229.946 million in 2023 cap commitments with 48 players under contract, according to NFLPA data. Under offseason accounting rules, only the top 51 salaries (i.e.; cap numbers) matter. There is $1.66 million of existing cap space that can be carried over to 2023. Assuming the 2023 salary cap is set in the $225 million neighborhood, the Packers would have approximately a $6 million overage before restructuring contracts and/or releasing players.

The most likely retirement scenario would be Rodgers modifying his contract so the Packers could get more favorable cap treatment. Rodgers and Packers would need to sign a new contract deleting the option bonus where only his league minimum $1.165 million base salary remained as 2023 compensation. This move would free up $14.625 million of 2023 cap space by reducing his 2023 cap number from $31,623,570 to $16,998,570.

The Packers would carry Rodgers with his new $16,998,570 2023 cap number until June 2 when his retirement would be processed and his $1.165 million base salary would come off the books. By waiting until June 2, the $24.48 million in roster bonus proration from Rodgers' 2024 through 2026 contract years wouldn't hit Green Bay's salary cap until 2024. The Packers would be able to split the $40,313,570 of dead money into $15,833,570 in 2023 and $24.48 million in 2024.

Trade

Green Bay would have the same $40,313,570 of dead money by trading Rodgers as with him retiring. Rodgers doesn't have a no-trade clause in his contract. It's highly unlikely the Packers would attempt to trade Rodgers to a team that he didn't want to play for because retirement is a viable option for him. 

The Raiders might be attractive to Rodgers. He would be reunited with All-Pro wide receiver Davante Adams, who was dealt to the Raiders last March after the Packers designated him as a franchise player.

Whether the Packers would be able spread this dead money over two years would depend on the timing of the trade. The extended window to exercise the option gives the Packers a longer timeframe to execute a trade. Typically in NFL contracts, the period to exercise an option when there's a required payment is within the first five days of a league year. 

The extra time might not matter salary cap wise because most trades for a veteran starting quarterback take place before the NFL Draft, which is April 27 through April 29. The acquiring team usually wants the quarterback to have as long as possible during the offseason to get comfortable with his new offense. Under this scenario, all of the dead money would be a 2023 cap charge because the trade would be occurring before June 2. Only by delaying a trade until June 2 at the earliest would the Packers get to split the dead money over 2023 and 2024 like with retirement. 

In both trade circumstances, the Packers wouldn't exercise the option. Picking up the option before making a trade would add $59.465 million to the dead money to bring the total to $99,778,570.

The acquiring team would be assuming the remainder of Rodgers' contract, including the right to exercise the option. Technically, Rodgers would be under through 2026 but realistically for two years worth $108.815 million unless the two below-market salaries in 2025 and 2026 were adjusted.

The new team would have a $15.79 million 2023 cap hit for Rodgers consisting of the $14.575 million of option proration bonus, his $1.165 million base salary and $50,000 workout bonus. Rodgers' 2024, 2025 and 2026 cap numbers would be $32,541,666, $51,141,166 and $45,291,668. 

The option surely would be exercised because Rodgers' 2023 cap charge becomes a $59.515 million cap hit if it isn't. Such an exorbitant cap number for Rodgers isn't practical or even possible for most NFL teams.

Remaining with Packers

Rodgers' contract is structured in a manner where the cap ramifications get worse for Green Bay if he doesn't retire this offseason. Although $31,623,570 is a manageable 2023 cap number for Rodgers to stay with the Packers, the dead money takes a big jump if Rodgers hangs up his cleats after the 2023 season.

Green Bay would have to contend with $68.205 million of dead money in 2024. It would be composed of $24.48 million of roster bonus proration and $43.725 million of option bonus proration from Rodgers' 2024 through 2026 contract years. As with the roster bonus, Green Bay won't have any recoupment rights with an option bonus past the year when exercised.

There's a second option in the contract that will compound the dead money problem if Rodgers plays in Green Bay beyond 2023. Rodgers has a $49.25 million 2024 base salary that was guaranteed for injury at signing. This $49.25 million becomes fully guaranteed on the fifth day of 2024 waiver period (five days after Super Bowl LVIII) on Feb. 16. A $47 million payment is required to exercise an option for Rodgers' 2026 contract year worth $15.05 million to drop his 2024 base salary to a fully guaranteed $2.25 million. The window to exercise this option is the first day of the 2024 league year until a day before Green Bay's first 2024 regular-season game. 

The $47 million is currently being prorated on the cap at $15,666,666, $15,666,666 and $15,666,668 for 2024, 2025 and 2026 because of the presumption that options will be exercised. Rodgers' 2024, 2025 and 2026 cap numbers are listed as $40,701,666, $59,301,666 and $53,451,668.

The Packers would be dealing with $76,803,334 of dead money if Rodgers retires in 2025. The components would be $16.32 million of roster bonus proration, $29.15 million of first option bonus proration and $31,333,334 of second option bonus proration. Green Bay would likely delay formalizing Rodgers' retirement until after June 1, so the dead money would be taken over two years with $38,401,666 in 2024 and $38,401,668 in 2025.

Final thoughts

I suspect the fully guaranteed $59.465 million will ultimately provide enough incentive for Rodgers to remain with the Packers for the 2023 season. Most athletes aren't going to walk away from such a substantial sum of money regardless of wealth. Given how the last couple of years have played out once Green Bay's season is over, it would be a major surprise if the same dance about Rodgers' future doesn't repeat itself in January 2024.

 

There is an option bonus in his contract that can be triggered at any time this offseason that turns his guaranteed $58.3 salary this year into a bonus that would spread over the next 4 years. His salary cap numbers:

2023: $15.79 million

2024: $32,541,666 million

2025: $51,141,166 million

2026: $45,291,668 million

If a team wants to go all in over the next couple of years his cap numbers are good. 

 

 
  • Upvote 3
  • Sympathy 1
  • Post of the Week 1
Link to comment
Share on other sites
  • Replies 163
  • Created
  • Last Reply

Top Posters In This Topic

Popular Days

Top Posters In This Topic

Popular Days

Popular Posts

JiFtheOracle
JiFtheOracle

Untouchable
Untouchable

1. Rodgers 2. Carr     3. Garoppolo   Anything short of that is going to be a giant kick to the balls and put a big damper on my optimism for next season.

pointman
pointman

I wonder if other boards for fans of teams who can't even sniff the playoffs are talking about landing every damn QB option out there. 

Posted Images

  • Popular Post
Untouchable

Untouchable

Posted
  • Popular Post
Posted
1 minute ago, pointman said:

I wonder if other boards for fans of teams who can't even sniff the playoffs are talking about landing every damn QB option out there. 

We were sniffing the playoffs up until the last two weeks of the season.

And the main reason we didn’t make it is because we scored a combined 15 points over the last 3 games.

To say that Aaron Rodgers changes things is an understatement.

  • Upvote 4
  • Sympathy 1
  • Post of the Week 2
Link to comment
Share on other sites
pointman

pointman

Posted
Posted
1 minute ago, Untouchable said:

We were sniffing the playoffs up until the last two weeks of the season.

And the main reason we didn’t make it is because we scored a combined 15 points over the last 3 games.

To say that Aaron Rodgers changes things is an understatement.

Nah. We pretended and hoped, it wasn't going to ever actually happen. Oh and six, baaaaabyyyyy.

 

A-A-Ron is a dumbass but he makes us 2 legit, 2 legit to quit.

  • Haha 1
Link to comment
Share on other sites
ZachWilsonRightArm

ZachWilsonRightArm

Posted
Posted
5 minutes ago, pointman said:

I wonder if other boards for fans of teams who can't even sniff the playoffs are talking about landing every damn QB option out there. 

The main reason we didn’t make the playoffs is because of our QB play. Of course we’re discussing it, if we had any of these guys rather than what we had we’d have been in the playoffs.

  • Upvote 2
Link to comment
Share on other sites
Team archer

Team archer

Posted
Posted
16 minutes ago, BigRy56 said:

If that's the price, it's going to cost a ton of draft picks to get him. But he would flip the expectations of this team on their head - he can still sling it at a really high level. Could be a TB12 to Bucs type of situation for us

I dont think so. Green Bay might be eager to trade him. He’s had a gun to their head for like 4 years. A 2nd and 4th should get it done

  • Sympathy 1
Link to comment
Share on other sites
JTJet

JTJet

Posted
Posted
41 minutes ago, choon328 said:

https://www.cbssports.com/nfl/news/agents-take-how-aaron-rodgers-future-decision-affects-the-packers-bottom-line/

 

There is an option bonus in his contract that can be triggered at any time this offseason that turns his guaranteed $58.3 salary this year into a bonus that would spread over the next 4 years. His salary cap numbers:

2023: $15.79 million

2024: $32,541,666 million

2025: $51,141,166 million

2026: $45,291,668 million

If a team wants to go all in over the next couple of years his cap numbers are good. 

If this is true, you make that trade. Wtf do we have to lose anyways? 

Or are we supposed to be patient and hope for a drafted QB to work out...one day... ? 

Link to comment
Share on other sites
BigRy56

BigRy56

Posted
Posted
20 minutes ago, Team archer said:

I dont think so. Green Bay might be eager to trade him. He’s had a gun to their head for like 4 years. A 2nd and 4th should get it done

For a 2 and 4 I think I’d pull the trigger immediately. Not sure I’d give away a 1 for a 1-3 year rental

  • Upvote 2
Link to comment
Share on other sites
LSJF

LSJF

Posted
Posted
2 minutes ago, Gen X Jet said:

He didn't look great this year.  Better than Brady and Ryan for sure but not what everyone is accustomed to seeing out of him.

He would actually have weapons on this team, and Lol, his bad year would be the fifth best for Jet quarterback ever….

  • Upvote 1
Link to comment
Share on other sites
Adoni Beast

Adoni Beast

Posted
Posted

If you’re Joe Douglas and Robert Saleh you’re going to be not only make the playoffs but at least the Divisional Round and more over the next couple of years.

You look at the AFC…are you beating Joe Burrow, Patrick Mahomes, Trevor Lawrence, Josh Allen, and Justin Herbert, with Jimmy Garoppolo? 

Let’s not forget…Joe Douglas got a 6 year deal and big $$$ with the aura that he was Ozzie Newsom to come here as a first time GM. Its time to show some results.

You have to swing for the fences here and get Rodgers or at least Carr.

  • Upvote 1
  • Sympathy 1
Link to comment
Share on other sites
rangerous

rangerous

Posted
Posted
52 minutes ago, Team archer said:

I dont think so. Green Bay might be eager to trade him. He’s had a gun to their head for like 4 years. A 2nd and 4th should get it done

Or less. Favre cost a third and I don’t think he ate into the cap as much as Rodgers will to Green Bay’s.  The thing to look at is what happens to Green Bay if they cut ties.

Link to comment
Share on other sites
T0mShane

T0mShane

Posted
Posted
23 minutes ago, Jetpain said:

And why exactly are the Packers trading Rogers to us?  to get the Jordan Love era started?  LeFleur seat is a bit warm as he has come up short several times.  How is this making his job more secure?  Rogers gives LeFleur a scapegoat and job security.  

Rodgers is a fungus on that Packers franchise and is basically the head coach. There’s a fun video floating around the internet showing the Packers sideline exploding during the brief Jordan Love TD drive against Philly toward the end of the year. They are dying to get Rodgers out of the building. 

  • Upvote 2
  • Haha 2
Link to comment
Share on other sites
docdhc

docdhc

Posted
Posted
1 hour ago, BigRy56 said:

If that's the price, it's going to cost a ton of draft picks to get him. But he would flip the expectations of this team on their head - he can still sling it at a really high level. Could be a TB12 to Bucs type of situation for us

Brady was a free agent and took below market salary because he wanted to win Super Bowls. Rodgers just cares about money and MVPs. 

Link to comment
Share on other sites
Jetpain

Jetpain

Posted
Posted
11 minutes ago, T0mShane said:

Rodgers is a fungus on that Packers franchise and is basically the head coach. There’s a fun video floating around the internet showing the Packers sideline exploding during the brief Jordan Love TD drive against Philly toward the end of the year. They are dying to get Rodgers out of the building. 

While i agree his personality has surely worn down even hos most loyal followers in GB, I still think he gives them the best chance to win.   

  • Upvote 1
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
 Share
Go to topic listing

Content Partnership

Yes Network

Site Sponsor

MILE-Social - NJ Social Media & SEO company

Site Sponsor

MetLife Stadium Tailgate

NY Jets Podcast

NY Jets Podcast

DMCA Page

  • -- DMCA Page
    • ×
    ×
    • Create New...