Ongoing Flacco Contract Negotiations (Merged)

**leachisabeast** · 02-06-2013, 06:52 PM

I just hope they get it done, getting Joes cap number to 7 million for 2013 would enable us to improve this roster, or at least bring back the key players.

**pslholder96** · 02-06-2013, 06:57 PM

Originally Posted by bmorecareful

Flacco can name his price up to whatever the exclusive rights franchise tag is. That's 20 and a little change I believe. He will get whatever he wants up to and including that.

If the Ravens offer less than that Flacco will never accept. Then they'll need to apply the tag, take the 20m cap hit, and keep him under control for a year. They'll be essentially betting that he won't perform at the level of his past 4 games in 2013. Oh, and by the way, Ozzie will have to totally gut the team to fit under the 2013 cap, and won't be able to sign a single free agent.

The non-exclusive tag is not an option. There are 10-15 teams in the league that will trip over themselves to give up 2 first rounders for Flacco, and many of them have more than enough cap space to give him what he wants. Then, the Ravens would be in the same problem they're already in: give him what he wants or lose him. They would need to fold again and match the offer.

So, the bottom line is that the Ravens have to give him whatever he pleases or watch him walk and take the team's playoff chances for the next few years with him. It's very interesting; Ozzie has never been in this position. He's completely powerless and gets to choose taking his medicine now or waiting until the last minute (as usual) and gutting the entire team along the way.

The FO must absolutely be kicking themselves for not paying Flacco what he wanted last August. Obviously that's outcome bias, but he had them over a barrel then and they chose to bet against him and they lost huge. They won't be able to do that again.

Not to be anal but the cap hit for slapping the franchise tag on Joe is not $20M, it's around $14M

**pslholder96** · 02-06-2013, 06:58 PM

The deal will get done. Flacco said after the game he wants to be a raven for life. I think he meant it and will meet the Ravens halfway regardless of what his agent says. His agent is paid to talk him up.

**Haloti92** · 02-06-2013, 07:00 PM

Originally Posted by leachisabeast

I just hope they get it done, getting Joes cap number to 7 million for 2013 would enable us to improve this roster, or at least bring back the key players.

I don't think we can get Joe's cap number to anything under $9M in 2013, frankly. Any signing bonus paid gets prorated over a maximum of 5 years, plus there is a minimum base salary for a 5 year vet of around $700k. So even if we get away with a $40M signing bonus (vs. $50M), that is a cap number of $8.7M. And I think the signing bonus is likely to be $45-50M (cap hit of $9.7M to $10.7M).

Maybe I am missing a way to get it lower and BMore-Raver (or someone else) can fill me in.

**Haloti92** · 02-06-2013, 07:01 PM

Originally Posted by pslholder96

Not to be anal but the cap hit for slapping the franchise tag on Joe is not $20M, it's around $14M

The exclusive franchise tag is around $20M. The non-exclusive is around $14M. Both are being floated around in terms of options.

**leachisabeast** · 02-06-2013, 07:03 PM

Originally Posted by Haloti92

I don't think we can get Joe's cap number to anything under $9M in 2013, frankly. Any signing bonus paid gets prorated over a maximum of 5 years, plus there is a minimum base salary for a 5 year vet of around $700k. So even if we get away with a $40M signing bonus (vs. $50M), that is a cap number of $8.7M. And I think the signing bonus is likely to be $45-50M (cap hit of 9.7 to 10.7M).

Maybe I am missing a way to get it lower and BMore-Raver (or someone else) can fill me in.

Bmore Ravor said you can get his cap hit as low as 5M in 2013, so not sure about that one. Either way, I'd take 9M any day.

**Haloti92** · 02-06-2013, 07:05 PM

Originally Posted by leachisabeast

Bmore Ravor said you can get his cap hit as low as 5M in 2013, so not sure about that one. Either way, I'd take 9M any day.

Ok, I would be interested in hearing how that would be done, assuming a sizable signing bonus. I am always trying to figure out the intricacies of cap management.

**arnie_uk** · 02-06-2013, 07:09 PM

Originally Posted by Haloti92

Ok, I would be interested in hearing how that would be done, assuming a sizable signing bonus. I am always trying to figure out the intricacies of cap management.

Split his bonus. Give him like 15 this year then guarantee like 25 next year.

They did something similar with ngata. Two bonuses split over five years each iirc.

**Haloti92** · 02-06-2013, 07:13 PM

Originally Posted by arnie_uk

Split his bonus. Give him like 15 this year then guarantee like 25 next year.

They did something similar with ngata. Two bonuses split over five years each iirc.

But isn't the second installment still subject to him being on the team (i.e. like a roster bonus)? I realize the odds are very high, but I am wondering if this in fact technically 100% guaranteed against all possibilities.

If a fully guaranteed signing bonus can be split, then what are the rules that govern this? There has to be some restriction, or one could push back a ridiculous amount of money almost perpetually.

**arnie_uk** · 02-06-2013, 07:26 PM

Originally Posted by Haloti92

But isn't the second installment still subject to him being on the team (i.e. like a roster bonus)? I realize the odds are very high, but I am wondering if this in fact technically 100% guaranteed against all possibilities.

If a fully guaranteed signing bonus can be split, then what are the rules that govern this? There has to be some restriction, or one could push back a ridiculous amount of money almost perpetually.

Well if you guaranteed it and cut him after year one, the full 25 mil or whatever would count as dead money against the cap in that year I'm assuming. It's two separate bonus, one a signing bonus the other just a bonus, from my limited knowledge.

It's been done with someone, I thought it was ngAta but it wasn't now I think about it. Brian will chip in sometime

**jonboy79** · 02-06-2013, 08:18 PM

Originally Posted by arnie_uk

Well if you guaranteed it and cut him after year one, the full 25 mil or whatever would count as dead money against the cap in that year I'm assuming. It's two separate bonus, one a signing bonus the other just a bonus, from my limited knowledge.

It's been done with someone, I thought it was ngAta but it wasn't now I think about it. Brian will chip in sometime

Suggs, Ngata, Rice and maybe even Yanda all have split bonuses. I think the key with Flacco is to split it accross 3 years, of a huge contract length(7 or 8 years) and guarantee all of his first 3 years.

For example: 8 years $160m with $60m guaranteed
Y1: SB $25m, Salary $1m cap hit $6m
y2: SB $15m, Salary $2m cap hit 10m
y3: SB $15m, Salary $2m, cap hit 13m
y4: Salary $11m cap hit $22m
y5: Salary $13m cap hit $24m
y6: Salary $20m cap hit $26m
y7: Salary $26m cap hit $29m
y8 Salary $30m cap hit $30m

**wickedsolo** · 02-06-2013, 08:42 PM

Originally Posted by jonboy79

Suggs, Ngata, Rice and maybe even Yanda all have split bonuses. I think the key with Flacco is to split it accross 3 years, of a huge contract length(7 or 8 years) and guarantee all of his first 3 years.

For example: 8 years $160m with $60m guaranteed
Y1: SB $25m, Salary $1m cap hit $6m
y2: SB $15m, Salary $2m cap hit 10m
y3: SB $15m, Salary $2m, cap hit 13m
y4: Salary $11m cap hit $22m
y5: Salary $13m cap hit $24m
y6: Salary $20m cap hit $26m
y7: Salary $26m cap hit $29m
y8 Salary $30m cap hit $30m

Odds are that come the years when his cap hit goes over $20 mill, they would convert money to bonuses, restructure, or maybe even extend.

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