Leonard Floyd’s contract details show Rams had to get creative with the cap

Leonard Floyd signed a 1-year deal, but it’s structured as a 3-year contract for cap purposes.

It took more than a month for Leonard Floyd to sign his contract with the Rams, finally making it official on April 24. The delay was presumed to be because of the coronavirus pandemic making it difficult to get a physical done, but it likely had to do with the Rams’ cap situation, too.

As it’s been pointed out throughout the offseason, Los Angeles isn’t exactly flush with cap space. According to Over The Cap, the Rams have just $419,169 available, the least in the NFL by more than $600,000.

That includes Floyd’s contract, which was reported as a one-year deal worth $10 million. Details of his contract have finally surfaced thanks to Over The Cap, and the structure of it proves the Rams had to get creative.

The $10 million is fully guaranteed, but the Rams were able to spread the cap hit across three seasons – even though it’s only a one-year deal. They did so by essentially making it a three-year deal with the final two seasons automatically voided.

So Floyd will get a base salary of $5 million in 2020 with the other $5 million coming as a signing bonus. Signing bonuses are prorated over the life of the contract, which in Floyd’s case gives him $1.667 million in each of the next three years.

His cap number is $6.667 million in 2020 and $3.333 million in 2021, even though he’s not technically under contract beyond this coming season. So next year, Floyd will carry a dead cap hit of $3.333 million unless the Rams sign him to an extension.

With the Rams’ current cap situation, it would’ve been extremely tough for them to fit the full $10 million under the cap in 2020. By doing this, they lessen Floyd’s impact on the salary cap this year, but the downside is that they’ll have to eat $3.333 million in 2021 for him not to be on the roster.

For most teams, this structure wouldn’t have been necessary. But for the Rams, who have already made just about every cap-saving move possible, it was almost required.

The team already made moves to get under the cap – such as cutting Todd Gurley and Clay Matthews, and restructuring the contracts of Jared Goff and Rob Havenstein – all to help fit Floyd and A’Shawn Robinson in. The only realistic moves left are trading Gerald Everett or Havenstein, restructuring Aaron Donald’s deal, or signing Jalen Ramsey to an extension.

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