HomeNFLSeattle Seahawks make the most of inventive accounting to bolster roster regardless of cap crunch
Seattle Seahawks make the most of inventive accounting to bolster roster regardless of cap crunch
April 7, 2021
6:00 AM ET
SEATTLE — Throughout a two-month span in 2017, the Seattle Seahawks restructured the contracts of Russell Wilson and Doug Baldwin, changing base wage into signing bonus to liberate salary-cap house. The Seahawks wanted these financial savings to facilitate trades for Duane Brown and Sheldon Richardson, who every got here with contracts that Seattle in any other case would not have been capable of afford.
These restructures had been uncommon occurrences for a regime that has been among the many most conservative within the NFL in relation to utilizing contracts like bank cards.
They had been additionally reminders that groups can nearly all the time work round cap constraints so long as they’re keen to simply accept the implications down the street.
The Seahawks gave one other reminder of that actuality with the way in which they navigated the primary two weeks of free company, including 13 gamers regardless of beginning with lower than $20 million in cap room. Their workaround of alternative this time has been void years, that are synthetic years added onto the top of a contract for the aim of fast cap aid.
Normal supervisor John Schneider and vp of soccer administration Matt Thomas — who manages the Seahawks’ cap and negotiates their contracts — included them in at the very least seven of these 13 contracts. And whereas that mechanism has been utilized by the New Orleans Saints and different groups for years, it is one thing the Seahawks had by no means performed till the pandemic-induced drop on this 12 months’s NFL wage cap compelled them to stray from the group’s MO.
Here is the way it works. When a participant indicators a contract that features a signing bonus, he will get that cash up entrance. However for cap functions, the fees for that bonus are unfold out evenly over the lifetime of the deal (solely as much as 5 years). Void years additional unfold out these expenses with out truly lengthening the contract. As soon as the true years within the deal run out, no matter synthetic years stay routinely void and the signing-bonus expenses which have been deferred then depend in opposition to the cap.
As an illustration, the two-year, $10.425 million deal Seattle gave Chris Carson features a $4.5 million signing bonus. Usually, that bonus would depend $2.25 million in opposition to the cap in every of the subsequent two years. However by including a voiding 12 months to the top of the deal, it solely counts $1.5 million in every of the subsequent two years. When the deal voids in 2023, the remaining $1.5 million that was deferred will depend in opposition to Seattle’s cap despite the fact that Carson will not be beneath contract.
Including the void 12 months to Carson’s deal allowed the Seahawks to defer $750,000 in 2021 cap expenses and the identical quantity in 2022. The mixed deferral this 12 months from the seven offers which might be recognized to incorporate at the very least one void 12 months is $7.375 million, with the remaining coming from Carlos Dunlap ($2.1 million), Gerald Everett ($2 million), Ethan Pocic ($1 million), Benson Mayowa ($750,000), Kerry Hyder ($425,000) and Cedric Ogbuehi ($350,000). It is not recognized if Al Woods’ contract features a void 12 months.
There’s one other $4.025 million that is deferred in 2022 between Carson, Dunlap, Mayowa and Hyder, whose offers are for 2 precise years. However that mixed $11.4 million in deferred expenses will depend in opposition to Seattle’s cap between 2022 and ’23. That the Seahawks are pushing most of these expenses — $8.05 million — into 2023 means that’s once they anticipate the cap to see a serious spike from the league’s new TV deal.
At their core, void years are one other approach for groups to borrow cap house from future seasons. It is the identical concept because the salary-to-signing-bonus conversions which might be widespread within the NFL. The Seahawks tried to mix these two mechanisms to be able to decrease Jarran Reed’s $14 million cap cost, however he rejected their proposed restructure in a baffling choice.
That led to Reed’s launch, which saved the Seahawks roughly $9 million in 2021 cap house. They’re anticipated to achieve about $7 million in extra cap aid this 12 months by way of Tyler Lockett’s extension. The brand new deal they gave Gabe Jackson lowered the cap quantity they inherited once they traded for him about $5.5 million.
One other restructure of Wilson’s contract can be yet another technique to liberate cash, however the damaging cap ramifications of one other salary-to-signing-bonus conversion would probably be an enormous deterrent. That may add much more lifeless cash to the huge quantity the Seahawks would already should eat in the event that they traded Wilson. It will additionally improve Wilson’s cap quantity within the last 12 months of his deal and thereby doubtlessly make him costlier for Seattle to tag or lengthen.
Whereas Jackson was the kind of offensive line improve that Wilson wished, they nonetheless may add somebody to compete with Pocic at heart. They undoubtedly want one other cornerback after lacking out on Quinton Dunbar and a 3rd receiver to exchange David Moore. Additionally they want a strong-side linebacker, whether or not it means bringing again Ok.J. Wright for an eleventh season with the workforce or signing a veteran to compete with Cody Barton for that job.
The Seahawks may ultimately should liberate more cash to be able to fill these remaining holes and have sufficient left over for in-season additions, which Schneider has all the time thought-about an essential piece of roster constructing.
However as the previous couple of weeks have proven, there are all the time a couple of methods to try this.