Quote:
|
Originally Posted by Ramseyfan
Brunell's base salary this year is $4 million. If he coverted $3 million into a signing bonus, wouldn't that save us $1.5 million in cap space?
|
no (i gave an example in a post the cap threads).
here's how a rework (salary -> bonus) has to work.
he gives back 500k in 2006, and to comply with the 30% rule, that means he'd have to give back 650k in 2007. that means 1.15million bonus which can only prorate over 4 years. 1.15mill / 4 = 287.5k a year in bonus. 500k - 287.5 = 212.5k actual savings, or about 40% of what he reworks.
the 30% and extra base salary you're forced to turn into bonus (from 2007) makes restructuring much less useful now than in previous years.