I don't get the 3m either, unless there's some sort of penalty for retiring before fulfilling the contract when it comes to signing bonus. Mostly I'd be happy to get his 3.5m base salary off the books.
Yeah, I don't think he'd pay anything.
Just from a tax perspective it would be a nightmare because I think you can only amend tax filings for 3 years after the deadline. Basically any player who retires after the 3rd year of a contract just pays back all that unaccounted for (in terms of the cap) bonus money and has now paid out of pocket the tax portion of a couple million dollars?
It's guaranteed money. The trade off in retiring is that you're generally forfeiting a hell of a lot more than the amount you've "swindled" out of the team . The team has your rights so you can't just sign another contract for another team......not that any team would want to sign you under those circumstances any way.
I could see there being a process by which teams could reclaim signing bonus money (in situations where a player retires excessively early) but I would seriously doubt that it is the standard. I think the Patriots had to have a hearing (or will have one) to try and recover some of Hernandez's signing bonus.