kcchief4lif 910 Posted July 16, 2015 Share Posted July 16, 2015 OK let's lay all this out in English. All numbers are approximate and based off these reports as I haven't gotten my hands on the actual contract yet. Houston was set to count $13.2 million against the Chiefs cap while under the franchise tag. This new contract will lower his 2015 cap number. His signing bonus is reported to be $20.5 million which, if his first year haul is $21.5 million, means that his first year base salary is about $1 million. MUST READS Houston discusses his mega contract Joel Thorman A $20.5 million signing bonus will be pro-rated over the life of the contract (five years) so that becomes roughly $4.1 million per year in cap space. That $4.1 million plus his $1 million base salary equals $5-something million for his first year cap number. Subtract that from Houston's initial $13.2 million cap number and that's how the Chiefs will gain roughly $8 million in cap space (if these numbers are correct). "I feel that we have enough flexibility to where we'll be able to do more deals," Chiefs GM John Dorsey told us in a conference call following the announcement of Houston's deal. The Chiefs like to enter the season with about $10 million in cap space to allow them to stay flexible. They could have one of their own players injured and need the money to sign someone else. Or another team could surprise everyone and cut a very good player that the Chiefs want to sign. Whatever it is, the Chiefs need some cap flexibility during the season. And now they have it. Link to comment Share on other sites More sharing options...
KCSLC2008 606 Posted July 16, 2015 Share Posted July 16, 2015 I thought the following information from Eraser would be good for this thread: The Chiefs would have had to pay JH $13.195M this year, at least 120% more next, and another 44% increase if they had to tag him a third time. 2015 - $5.1 instead of $13.195 2016 - $19.1 instead of $15.834 2017 - $20.6 instead of $22.8 2018 - $19.1 instead of gone 2019 - $19.6 instead of gone 2020 - $17.5 instead of gone. The signing bonus is spread over the first four years. Therefore, the Chiefs can reduce lower future cap hits by converting salary into bonuses. The Chiefs pay $7M less in the first three seasons than if they had tagged him consecutively. Link to comment Share on other sites More sharing options...
eraser 722 Posted July 19, 2015 Share Posted July 19, 2015 The Chiefs are going to add one or two more players this year. They have $8 M in cap relief this year. Dorsey could have created $2 M in cap space. That would have been enough to overcome injuries, and pick up a player or two during the season in case things go wrong. No, he did not just opt for $2 M... he went for $8 M. That means something is in the works. Link to comment Share on other sites More sharing options...
jetlord 10,209 Posted July 19, 2015 Share Posted July 19, 2015 Maybe signing Poe long term? Link to comment Share on other sites More sharing options...
DieHard 2,061 Posted July 19, 2015 Share Posted July 19, 2015 We still got big cap constraints next year. I would but as much of Houston and Smith into this year as possible. Link to comment Share on other sites More sharing options...
eraser 722 Posted July 20, 2015 Share Posted July 20, 2015 The Chiefs will probably have around $30 M in cap available next season. They will have enough if they move the pieces. Link to comment Share on other sites More sharing options...
qnet 1,150 Posted July 20, 2015 Share Posted July 20, 2015 Sounds good. So, he will get a $30 Million check upfront to start with? If so, that's not bad, I hope he manages wisely. Link to comment Share on other sites More sharing options...
Mugsy 225 Posted July 20, 2015 Share Posted July 20, 2015 The Chiefs will probably have around $30 M in cap available next season. They will have enough if they move the pieces. It will probably be more than that if the cap goes up like it is projected to. Link to comment Share on other sites More sharing options...
FANATIC 852 Posted July 20, 2015 Share Posted July 20, 2015 Not sure cap going up helps? Every team gets that bump so players win a larger share and more competition for free agents. Link to comment Share on other sites More sharing options...
KCSLC2008 606 Posted July 20, 2015 Share Posted July 20, 2015 Not sure cap going up helps? Every team gets that bump so players win a larger share and more competition for free agents. Everyone always mentions the cap going up as if it's going to help us but nobody else. They also mention it as if the team knows they have more money but the players agents don't know that. Players are going to ask for more and other teams will have more money, too. Link to comment Share on other sites More sharing options...
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