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Re: The article is wrong about the cap hits.

January 27, 2021 02:34PM
I wrote this the other day and I'm confident that this is the way it works:

For accounting purposes the cap hit from the original signing bonus that Goff received was spread over the first 5 years of his contract. And then when he renegotiated to give the Rams some additional cap space the cap hit from that new bonus also got spread over the remaining years. So that's where the prorated bonus money comes from. And if Goff stayed with the Rams that's how it would be accounted for: $6.8M in 2021, 2022, & 2023 plus another $1.8M in 2024.

But if the Rams trade him all of that prorated bonus money comes due. And all $22.2M goes against the 2021 cap if the trade happens before June 1. If the trade happens after June 1 then only this year's portion ($6.8M) goes against the 2021 cap and the rest ($15.4) is applied in 2022
.

The author makes this claim: " if the Rams trade Jared Goff before June 1st? The Rams will incur a $22 million dollar hit in their dead cap in 2021, another $15 million in 2022, and finally $8 million in 2023" but he's misreading the data.

Here the data (from overthecap.com [overthecap.com] ) is in the chart below.

And the correct way to read it:

If the Rams trade Goff before June 1, 2021 they will incur a cap hit of $22.2M in 2021. Period. (None of the other caps hits apply!!)

If the Rams trade Goff before June 1, 2022 they will incur a cap hit of $15.5M in 2022.

If the Rams trade Goff before June 1, 2023 they will incur a cap hit of $8.6M in 2023.

And if the Rams trade Goff before June 1, 2024 they will incur a cap hit of $1.8M in 2024.





AlbaNY_Ram
SubjectAuthorViewsPosted

  Folks, it’s clearly time for Rams to trade Jared Goff. (Article)

Rams43714January 27, 2021 09:23AM

  this is all just a fascinating turn of events....

LMU93207January 27, 2021 10:49AM

  From the outside looking in.. I question his work ethic and drive

BigGame81259January 27, 2021 11:00AM

  Re: From the outside looking in.. I question his work ethic and drive

oldschoolramfan158January 27, 2021 11:07AM

  I don't think those things are probs with Goff

merlin166January 27, 2021 11:10AM

  Re: From the outside looking in.. I question his work ethic and drive

BerendsenRam142January 27, 2021 03:32PM

  I agree

Atlantic Ram293January 27, 2021 11:08AM

  Re: I agree

Ekern55166January 27, 2021 12:15PM

  Re: this is all just a fascinating turn of events....

zn153January 27, 2021 11:30AM

  Re: this is all just a fascinating turn of events....

LMU93143January 27, 2021 11:51AM

  +1 (nm)

zn105January 27, 2021 03:42PM

  I think part of this is also McVay's timeline

LMU93136January 27, 2021 11:57AM

  What team wants their starting QB after June 1?

promomasterj124January 27, 2021 12:28PM

  Thought I read that...

JamesJM139January 27, 2021 12:31PM

  So he's on the Rams but doing OTA's with another team?

promomasterj119January 27, 2021 12:54PM

  I have no idea how it would work...

JamesJM108January 27, 2021 12:57PM

  I don't think teams, especially with new coaches will be cool with that

promomasterj107January 27, 2021 01:01PM

  Neither do I... but what I read led me to believe...

JamesJM91January 27, 2021 01:04PM

  Re: Folks, it’s clearly time for Rams to trade Jared Goff. (Article)

alyoshamucci274January 27, 2021 12:38PM

  +1

LMU93119January 27, 2021 12:50PM

  WOW! This is very different than what some are saying here - HUGE savings

ferragamo79165January 27, 2021 12:49PM

  Re: The article is wrong about the cap hits. Attachments

AlbaNY_Ram140January 27, 2021 02:34PM

  Who is the writer of this article? A fan?

promomasterj115January 27, 2021 12:55PM