Watson's cap hit after trade

[fivetwos]

Maybe some of you smart guys can help me understand something.....

How can Watson have signed such a large deal and there be so little cap ramification to Houston that I have yet to see it mentioned in anyone's reports of him wanting to be dealt.

Maybe I missed it, but it seems strange that we can't as much as take out our garbage because of cap implications, but a nine figure contract can be absorbed by Houston with no problem.

I would think his entire guaranteed portion would accelerate into the 2021 cap.

 

[JBS]

$67M in dead money if Hou trades him

 

[kskboys]

I would imagine that the Texans are only responsible for his signing bonus of 27 mil. His salary should go to his new team.

 

[kskboys]

$67M in dead money if Hou trades him

How does that work? Why does the new team not take on his salary? That just doesn't sound correct.

 

[Zordon]

I would like to know more about this too. @xwalker

 

[doomsday9084]

https://overthecap.com/player/deshaun-watson/5596/

Here is my understanding of it and smarter people than me here can correct me.

In a trade, the Texans would be responsible for the remainder of his signing bonus. That would be $21.6m.

The team that trades for him would be responsible for all future salary and roster bonuses. That would be $146.5m over 5 years, some of which is guaranteed.

This is not the same thing as cutting him, in which case the Texans would be responsible for all future guaranteed money.

 

[kskboys]

Pretty sure the dead cap amount of 67 mil only kicks in if he's released.

Salary goes w/ the player. I know the signing bonus gets crunched into one year if released, but I have no idea if the same thing happens if he's traded. Since 7.4 mil of signing bonus was put into 2020, it would appear to me that 19 something mil of signing bonus would be all the Texans would be on the hook for if traded.

 

[John813]

https://overthecap.com/player/deshaun-watson/5596/

Here is my understanding of it and smarter people than me here can correct me.

In a trade, the Texans would be responsible for the remainder of his signing bonus. That would be $21.6m.

The team that trades for him would be responsible for all future salary and roster bonuses. That would be $146.5m over 5 years, some of which is guaranteed.

This is not the same thing as cutting him, in which case the Texans would be responsible for all future guaranteed money.

Bingo. Dead cap in a trade will be from the remaining prorated signing bonus.

~67mil is only if cut, as he has guaranteed 45mil in combined salary in 21 & 22

They will get max value out of him trading him now prior to June 1st.

If post, it'll only be a 5.4mil cap hit, with 16.2mil in 2022, but then they'll lose out on gaining any picks for this years draft.

 

[jterrell]

Maybe some of you smart guys can help me understand something.....

How can Watson have signed such a large deal and there be so little cap ramification to Houston that I have yet to see it mentioned in anyone's reports of him wanting to be dealt.

Maybe I missed it, but it seems strange that we can't as much as take out our garbage because of cap implications, but a nine figure contract can be absorbed by Houston with no problem.

I would think his entire guaranteed portion would accelerate into the 2021 cap.

HOU signed him early and thus only had to give him 27M as a signing bonus.
That's all they are responsible for settling.
His GTD base years go with him to the new team.

They owe 21.6M of that bonus still. But they'd say his 10.5M base in trade.
They only lose about 11M in additional cap space in a trade this off-season.

The negative for a new team is he has a lot of money coming due plus a no trade clause.
10.5 for 2021 is a dream but he's owed over 35M each year in 2022 and 2023.
You gotta really feel like he is your guy to pay that freight plus trade off a lot of assets.

 

[fivetwos]

I can't understand most of it, so I won't attempt to pretend like I do....but it seems like the structure is the issue.....

So...maybe there's a way to get a Dak deal done that won't be debilitating to the franchise if he needs to go in two years.

 

[Typhus]

HOU signed him early and thus only had to give him 27M as a signing bonus.
That's all they are responsible for settling.
His GTD base years go with him to the new team.

They owe 21.6M of that bonus still. But they'd say his 10.5M base in trade.
They only lose about 11M in additional cap space in a trade this off-season.

The negative for a new team is he has a lot of money coming due plus a no trade clause.
10.5 for 2021 is a dream but he's owed over 35M each year in 2022 and 2023.
You gotta really feel like he is your guy to pay that freight plus trade off a lot of assets.

Seems to be trending that teams are willing to go back to the pond and try and catch a Mahomes, Herbert, Allen, Murray, maybe even a Darnold,,,, vs the 45m cap hit.

 

[DFWJC]

Maybe some of you smart guys can help me understand something.....

How can Watson have signed such a large deal and there be so little cap ramification to Houston that I have yet to see it mentioned in anyone's reports of him wanting to be dealt.

Maybe I missed it, but it seems strange that we can't as much as take out our garbage because of cap implications, but a nine figure contract can be absorbed by Houston with no problem.

I would think his entire guaranteed portion would accelerate into the 2021 cap.

I do know that his cap hit to the new team is very reasonable in 2021, but goes up to “fair market” after

 

[kskboys]

Seems to be trending that teams are willing to go back to the pond and try and catch a Mahomes, Herbert, Allen, Murray, maybe even a Darnold,,,, vs the 45m cap hit.

I would. Average QB's don't win super bowls w/o great teams. Great teams are hard to get, esp w/ decent players being paid great.

 

[fivetwos]

I'll also comment that while I'm not a huge Dak supporter Im a little surprised at why the sky seems to be the limit on what teams ought to pay for Watson, while people around here think Prescott is worthless.

I personally dont see a huge difference as far as accomplishments or potential.

I'd honestly rather have Dak but whatever. Not the point.

 

[jterrell]

Seems to be trending that teams are willing to go back to the pond and try and catch a Mahomes, Herbert, Allen, Murray, maybe even a Darnold,,,, vs the 45m cap hit.

Haven't really seen that yet. Zero teams have let a young franchise QB walk.

The last two teams that did it were the WFT with Cousins and the San Diego Chargers.
Sort of hilariously neither team exists in that from any longer.
San Diego went draft route and got a really good one but never cracked the glass ceiling while we know what Brees has done.
WFT tried Alex Smith but he was older and injured.
They are now gonna be on R1 QB attempt 2.

But it is possible we will see a day where teams truly balk and go for the rookie crap shoot.

 

[jterrell]

I do know that his cap hit to the new team is very reasonable in 2021, but goes up to “fair market” after

Yup but you gotta pay a boatload in trade to get him.
How many teams can trade off all those assets plus outlay 35M in cap space going forward minus draft picks to replace them?
That's where the crunch comes in.
If he couldn't elevate HOU can he elevate team X? NYJ and MIA are interesting options to consider.

Paying the QB then drafting well is how you keep winning imho.
Tough to do that if you leverage all your draft picks to acquire a QB.

 

[fivetwos]

Haven't really seen that yet. Zero teams have let a young franchise QB walk.

The last two teams that did it were the WFT with Cousins and the San Diego Chargers.
Sort of hilariously neither team exists in that from any longer.
San Diego went draft route and got a really good one but never cracked the glass ceiling while we know what Brees has done.
WFT tried Alex Smith but he was older and injured.
They are now gonna be on R1 QB attempt 2.

But it is possible we will see a day where teams truly balk and go for the rookie crap shoot.

Cousins was definitely not worth what he was asking at the time and I didn't at all think WFT made the wrong move.

In hindsight, they STILL haven't solved the QB problem since.

Not to even mention that Cousins was the backup plan to the massive haul they dealt to get RGIII.

That ought to concern anyone that is willing to go into "look for qb" mode.

This roster isn't bad enough to do that.

 

[blueblood70]

F all that noise, owner whoukls just say NO..no way im eating that, make him pay back the bonus if he wants out , i mean why should the owner eat that money because players unhappy, he signed the deal 12months ago or less..

OR,


These NFL kids wouldn't like it if i was the owner, sports period need owners with backbone..

I would tell these kids to honor their phreaking contracts or sit an get massive fines ie 100k per any team mandatory function missed, every meeting, practice, requested press conference, or even a uniform fitting..

im sick of looking around sports and seeing the blackmailing going on and players with huge deals and promises made getting traded to wherever they want..

no way F all that noise..you signed a 37mil+ del you play or sit and lose money..a chit ton of money and no taking it back like jones has done with fines , i would have fined EE 1mil for his latest holdout and no refunds once he was signed or came back..

weak azz owners are ruining sports..

someone be the first to say NO, show these kids dont sign long term let the process work and get out..once the FT you demand an out not after you get handed 40plus mil and last less then a fiscal year..no fn way ..

do like Dak or cousins make them keep you year to year and demand an out without new deal..punks get their ay far too often..

play or sit and eat HUGE fines

 

[CATCH17]

Cousins was definitely not worth what he was asking at the time and I didn't at all think WFT made the wrong move.

In hindsight, they STILL haven't solved the QB problem since.

Not to even mention that Cousins was the backup plan to the massive haul they dealt to get RGIII.

That ought to concern anyone that is willing to go into "look for qb" mode.

This roster isn't bad enough to do that.

lol.. This roster is destined for the middle if we sign Dak.. Or did you miss the last 2 seasons and see Dak isn't capable of carrying a team. Heck we can throw in 2018 too because we saw him without Amari as well.

Paying premiums for a QB that needs to be surrounded by a lot of talent is pure foolishness. If he had a Superbowl trophy in hand i'd be all for it but instead you're wanting to do what the Vikings did and claiming we are better than them? PUUUH LEASE.

 

[dagreat1_87]

sure it's been posted but i could've sworn its because technically it was an extension added on to his final year, not necessarily a brand new contract.. so the salary and all that doesn't kick in until this league year