DandyDon52
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ok thanks, very good explanation.If they trade Dak after June 1 only his pro-rated bonus for 2022 hits the CAP in 2022 or (the Cowboys have the options to take the entire pro-rated bonus amount if they choose). His guaranteed salary is paid by his new team and his new team takes his salary against their CAP - and his salary for the next years of his contract. Dallas then takes the remainder of Dak's pro-rated bonus against their CAP in 2023. This is considered dead money because Dak is no longer with the team but they are taking a CAP hit for him anyway.
In 2022 Dak's current CAP impact is $34.45 million. $20 million is salary and the rest is pro-rated bonus. That is $14.45 million. If they trade Dak after June 1, the CAP impact is only the pro-rated bonus amount of $14.45 million which is $20 million less that his CAP impact would have been if he was still with the team. Hence, $20 million CAP save.
However, his signing bonuses were spread out over 5 years, out to 2025. So after 2022 there are still 3 years of pro-rated signing bonus on Dallas's CAP books. That amounts to $43.35 million ($14.45 million x 3). Dak's CAP impact for 2023 is $45.45 million, assuming they do not restructure him in 2022. The remaining pro-rated bonus amount for Dak in 2023 is $43.35 million. So the dead money in 2023 is still $2.1 million less than his CAP impact would have been. That's considered a $2.1 million CAP save. But the problem with dead money is there is no way to restructure it to spread it out further. They have to take the whole thing in 1 year.
Dak's 2022 salary is guaranteed so they can't make him a pre-June 1 cut and save $20 million. In fact, they have to pay him his $20 million no matter when they cut him. And his 2023 salary of $31 million is guaranteed the 5th day of the 2022 leagues year which is March 21st. Only a trades gets them out of the obligation to pay him his salary unless they cut him before March 22.
I know it sounds complicated but it is actually very simple. The net of it is they can trade Dak after June 1 and save some money this year and a bit less next year.
The interesting thing is his new team only takes on his salary. For for them his CAP impact is $20 million this year and $31 million next. They can restructure his deal and convert salary to bonus and lower his CAP quite a bit for both years. This makes Dak very tradeable - if he agrees to the deal.
It is that bonus money that is the problem, which is the signing bonus.
It is messed up they can spread that out 5 years !
But you validate dak is trade-able if he wants to be traded. The whole idea is to make him want a trade.
It is all feasible, it just goes against standard football mentality.