Tag: cap hit

Should the Saints pick up Marcus Davenport’s fifth-year option?

The New Orleans Saints must make a decision on DE Marcus Davenport’s fifth-year option by May 3, choosing whether to keep him through 2022.

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It used to be simple to calculate how much a player’s fifth-round option would cost a team. Under the old NFL collective bargaining agreement, those numbers were based off of draft slot — top-10 picks against the rest of the first rounders. But the renegotiated CBA introduced a performance-based system that rewards players for getting on the field often and earning accolades like Pro Bowl nods (scroll to page 41 for details).

Which isn’t great news for New Orleans Saints defensive end Marcus Davenport. The 2018 first-round pick is not a free agent yet, but he will be in 2022 if the Saints choose to not exercise his fifth-year option, which New Orleans must make a decision on by May 3. Davenport has not met the snap counts benchmarks (having appeared on 40%, 50%, and 36% of defensive plays through his first three years), and he has not been voted into a Pro Bowl, which qualifies him only for the least-valuable tier.

So his fifth-year option will be determined by the cap percentage average of the 2020 transition tag, using the third through twenty-fifth highest salaries of his peers. That estimates Davenport’s fifth-year option as valued at $11,311,513. That number will change slightly once the 2021 salary cap is established, but not by much. Exercising the option will also fully guarantee his fourth- and fifth-year salaries.

Now that we have an idea of how much that would cost, we can make an educated guess at the problem in front of the Saints. Davenport hasn’t played up to his billing as a transformational pass rusher, though the defense has performed better with him in the lineup than without him. The issue is that he hasn’t taken any big strides since his rookie year, and his injuries have continued to pile up.

After racking up 30 quarterback pressures in 2018 (in 13 games) and 51 pressures in 2019 (through 13 games), Davenport took a step back with 37 pressures in 2020 (appearing in 11 games). That’s an average of 2.3 pressures per game in 2018, 3.9 in 2019, and 3.4 in 2020. He was also credited with just 1.5 sacks last season.

We’ve seen the Saints take a patient approach with players in a similar position; left guard Andrus Peat has a similar injury history and record of up-and-down play. Peat’s fifth-year option was exercised, and after a brief look into free agency he returned to sign a long-term contract with New Orleans. It’s very possible Davenport’s career takes a similar track, even though he plays a more highly-valued position.

And we just saw Trey Hendrickson break out with a career year in 2020, leading the team and ranking second-best in the NFL with 13.5 sacks. Maybe Davenport enjoys similar, sudden success in 2021. But based off his career so far and even the relatively-low fifth-year option value, the Saints would do better to let him play this deal out as-is.

There’s certainly logic in picking up the option and keeping Davenport under contract through 2022. But with so many other contract extensions to hammer out on the team — and, frankly, with so many better players ahead of Davenport in priority — this is a situation where the Saints should let Davenport bet on himself and go all in on 2021. If he finally meets expectations, he’ll be rewarded with a rich payday in 2022. If he falls short again, he might be out of football altogether.

5 potentially painful 2021 Saints salary cap casualties

The New Orleans Saints might have to say goodbye to productive, expensive players as salary cap casualties in the 2021 offseason.

So, how will the New Orleans Saints remain competitive in 2021? Their issues aren’t just limited to complying with the salary cap — once they’re back beneath it, they have to focus on creating more resources to reload their roster after losing some of the 21 free agents crowding around the exits. Saints salary cap guru Khai Hartley (official title: vice president of football administration) will have to put together his magnum opus in navigating it all this year.

It doesn’t help that the list of possible cap casualties isn’t as obvious as you’d think. Linebacker Kwon Alexander ($13.4 million if released) and cornerback Janoris Jenkins ($7 million in possible savings) are both candidates to be let go, but Alexander’s injury clouds things, and both of them played well enough for the Saints to try and retain them through pay cuts or restructured contracts. 

There are other options if the Saints get really desperate (like tight end Josh Hill, wide receiver Emmanuel Sanders, and quarterback Taysom Hill, each of whom can between $2.6 million and $5 million if cut), but that’s only in a worst-case scenario where every other possible maneuver new Orleans tries isn’t enough. The other players on this list should be easier decisions to make. Still, we’re headed for lean times in New Orleans as the team transitions from one era to another, and some good players are going to end up on the outside looking in because of it.

Dwayne Haskins due $4.26 million over next two seasons; Washington takes $8.5 million dead-cap hit

Washington will take an $8.5 million dead-cap hit from the release of former first-round pick Dwayne Haskins, with the QB still owed $4.26 million.

With the news that Washington has released former first-round quarterback Dwayne Haskins, the question of money and dead-cap now comes into play. According to NFL Network’s Tom Pelissero, Haskins is owed $4.266 million over the next two seasons, and whichever team picks him up off of waivers — if anyone — will be on the hook for that cash.

Washington is not free of Haskins financially going forward, as they will be on the hook for $8.5 million in dead-cap for the 2021 season, according to Spotrac. However, it does free up a roster spot for the rest of the season and will allow the team to focus on football, rather than all of the drama that seemed to follow Haskins throughout his first two years in the NFL.

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Saints release veteran defensive lineman Mario Edwards Jr.

The New Orleans Saints released veteran defensive lineman Mario Edwards Jr., saving more than $2.3 million against the 2020 salary cap.

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The New Orleans Saints have started trimming their roster down to just 53 players, and there’s a bit of surprise to one of their first cuts: defensive lineman Mario Edwards Jr.

Edwards signed with the Saints last summer and appeared in 14 games, totaling 293 snaps played on defense. But the Saints can save $2.345 million against the 2020 salary cap by parting ways with him, and improved depth along the defensive line made him too expensive of a luxury. That raises their salary cap estimate to about $9.3 million.

Expect the Saints to round out the rotation behind Cameron Jordan and Marcus Davenport with returning backup Trey Hendrickson and second-year pro Carl Granderson — unless they’re able to land pricey free agent Jadeveon Clowney. The salary cap resources saved by releasing Edwards may go a long ways towards fitting Clowney onto their books.

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Report: Saints preparing contract restructures for Jadeveon Clowney cap hit

NFL Network reports the New Orleans Saints are working on contract restructures to make salary cap room for Pro Bowl DE Jadeveon Clowney.

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The New Orleans Saints are pulling out all of the stops in their pursuit of free agent defensive end Jadeveon Clowney, up to and including a quick trip to Houston for a member of the coaching staff to meet with him. They’re locked in a tight race with the Tennessee Titans to win Clowney’s services, but a few other teams could be waiting for their chance to strike.

And the Saints like their chances. NFL Network’s Mike Garafolo reported Friday that the Saints have approached veteran players already under contract about restructuring their deals, creating much-needed salary cap space so that Clowney could get onto the books. While that’s hardly a sign that this deal is definitely going to happen, it does show that the Saints are considering the ripple effects it could have on their roster.

So which contracts could they be looking at adjusting? We dug into a few tricks the Saints have used to work around the salary cap already, but let’s really get into the nuts and bolts on this.

The Saints frequently restructure deals by converting current-year salaries into signing bonuses, which are paid out immediately but spread out across future years for cap accounting purposes. That means eligible players would be those under contract beyond 2020 and who carry high base salaries this season.

A few quick examples:

  • OL Nick Easton: $4.5 million base salary, signed through 2022
  • DT Malcolm Brown: $4.1 million base salary, signed through 2021
  • K Wil Lutz: $3.1 million base salary, signed through 2023
  • P Thomas Morstead: $2.95 million base salary, signed through 2022
  • RB Latavius Murray: $2.8 million base salary, signed through 2022

So why doesn’t every team always restructure each contract to make more room? One downside is that new signing bonuses must be cashed out immediately, so team owners aren’t always eager to write more checks every summer (credit to Saints owner Gayle Benson for having no problem opening her pocketbook). Another pitfall is that restructures increase how much dead money would be left on the books from contracts should the Saints have to cut a player later on down the road. That’s a very real concern given expectations of a $175 million salary cap hit next year (down from $198.2 million this season, due to lost revenue during the COVID-19 pandemic).

Of course, that’s the easy way to restructure a contract. The Saints have also pioneered extensions that restructure existing deals to create more salary cap space in the past, and that’s certainly an option now. It’s just much more complicated.

The difficulty here is that future cap hits are raised so much that there’s no way of getting out of those contracts, so the Saints usually stick to franchise cornerstones like Drew Brees, Cameron Jordan, Terron Armstead, and Michael Thomas when going that route. Those are trusted players who the team knows will play well and be around for the future.

And in this case, the Saints have already chopped and screwed those contracts so much before that they aren’t in a position to do so right now. None of those players carries a base salary higher than $2.25 million (Jordan), leaving little salary to restructure in the first place. So this time, they probably aren’t an option.

However, the Saints could look to some of their 2021 free agents as options for a sign-and-restructure. The second-biggest cap figure on the team behind Brees belongs to Demario Davis, whose $7.35 million base salary makes up most of his $9.9 million cap hit. If the Saints can work out a long-term deal with Davis and convert much of that base salary to a signing bonus, they could make the room needed for Clowney’s contract.

Other options in the same boat as Davis are Jared Cook ($5 million base salary, $9 million cap hit) and Sheldon Rankins ($7.69 million; his cap hit is entirely made up of his base salary, which was guaranteed when his fifth-year contract option was picked up). The Saints could extend either of those players and create more breathing room, but Rankins is in a prove-it year and Cook is on the older side for a tight end. There’s some risk involved with tying the team to those contracts at this stage.

These are all things that Saints salary cap guru Khai Hartley is acutely aware of, and the team is smart to get proactive and see which players would be open to restructures sooner rather than later. Even if things fall apart with Clowney, it’s good to know they’ll have some flexibility should the right opportunity come up with another player, whether in free agency now or at the NFL trade deadline in October.

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Steelers’ 5 best salary cap bargains for 2020

Here are the Steelers’ 5 best salary cap bargains for 2020.S Minkah Fitzpatrick: $1.975 million cap hit in 2020.RB Benny Snell Jr.: $850K cap hit.WR JuJu Smith-Schuster: $1.335 million cap hit.OT Zach Banner: $1.75 million cap hit.OLB T.J. Watt: $2.945 million cap hit

Here are the Steelers’ 5 best salary cap bargains for 2020.S Minkah Fitzpatrick: $1.975 million cap hit in 2020.RB Benny Snell Jr.: $850K cap hit.WR JuJu Smith-Schuster: $1.335 million cap hit.OT Zach Banner: $1.75 million cap hit.OLB T.J. Watt: $2.945 million cap hit

Steelers’ 5 best salary cap bargains for 2020

Here are the Steelers’ 5 best salary cap bargains for 2020.S Minkah Fitzpatrick: $1.975 million cap hit in 2020.RB Benny Snell Jr.: $850K cap hit.WR JuJu Smith-Schuster: $1.335 million cap hit.OT Zach Banner: $1.75 million cap hit.OLB T.J. Watt: $2.945 million cap hit

Here are the Steelers’ 5 best salary cap bargains for 2020.S Minkah Fitzpatrick: $1.975 million cap hit in 2020.RB Benny Snell Jr.: $850K cap hit.WR JuJu Smith-Schuster: $1.335 million cap hit.OT Zach Banner: $1.75 million cap hit.OLB T.J. Watt: $2.945 million cap hit

Projecting Jordan Love’s rookie contract with Packers

Over the Cap has a projection for Jordan Love’s rookie contract with the Packers.

As a first-round pick of the Green Bay Packers, quarterback Jordan Love will soon sign on the dotted line of a fully guaranteed, four-year contract with a fifth-year team option.

Over the Cap provides projections for each draft pick, based on the rookie wage scale as stated in the CBA. Love was the 26th overall selection in the 2020 draft.

According to OTC, Love’s four-year deal will be worth almost $12.4 million, with a signing bonus of almost $6.6 million.

Here’s the full projection over four years:

Year Base Signing Cap hit
2020 $610,000 $1,641,540 $2,251,540
2021 $1,172,885 $1,641,540 $2,814,425
2022 $1,735,770 $1,641,540 $3,377,310
2023 $2,298,655 $1,641,540 $3,940,195
Total $5,817,310 $6,566,160 $12,383,470

The deal averages almost $3.1 million per year, a reasonable amount for a quarterback expected to be a backup for at least the first two years. If the Packers move on from Aaron Rodgers following the 2021 season, Love will represent a cheap starter at quarterback for at least two more years.

After Year 3, however, the Packers will have to decide whether or not to pick up the fifth-year option on the deal. The new CBA states that when exercised, the fifth year becomes fully guaranteed, and the value of the fifth-year option will be based on position and performance, not just draft slot in the first round. Given that Love is a quarterback, his fifth-year option will not be cheap, regardless of whether he plays during the first three years or not.

One other note: Trading up from No. 30 to No. 26 to draft Love increased the total value of the contract by a little over $1 million, including a nearly $900,000 increase in signing bonus.

Overall, the Packers will spend just under $8 million in cap space to sign their nine-player draft class, including Love.

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Details on Taysom Hill’s contract extension with the Saints

The New Orleans Saints signed Taysom Hill to a contract extension averaging more than $10 million per year, making him a highly-paid backup.

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Here’s a bombshell: the New Orleans Saints signed backup quarterback, special teams ace, and do-it-all weapon Taysom Hill to a contract extension through the 2021 season on Sunday. Per Charles Robinson of Yahoo Sports, Hill is cashing in with a two-year deal valued at $21 million, with $16 million in guarantees and another $1 million in incentives.

That’s an average of $10.5 million per year, with 76% of the new money guaranteed. It’s a significant payout for a backup passer — making Hill by far the NFL’s highest-paid No. 2 — but as we’ve seen before, he’s much more than a clipboard-holder on the sidelines. Hill influences the game in a number of unique ways for the Saints, so they’re really paying him for a wide range of responsibilities beyond wearing a headset.

The Saints are also paying Hill a salary that suggests he’ll be more than a backup. He’ll get a real shot at competing for the starting quarterback job in 2021 if Brees retires.

We don’t know how much of those guarantees are tied to a signing bonus, so it’s tough to forecast Hill’s annual salary cap hits. And it makes learning how this contract is structured even more fascinating. The Saints often use automatically voided years to spread out salary cap resources, and that could come into play again with Hill (especially considering that the Saints have just over $4 million in 2020 cap space to work with right now).

However it shakes out, Hill won’t test the free agent market until March 2022 at the soonest.

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The Athletic suggests a Saints-Seahawks trade centering on Larry Warford

The Athletic’s Sheil Kapadia suggested the Saints trade Pro Bowl guard Larry Warford to the Seahawks, maybe after the 2020 NFL Draft.

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Just two New Orleans Saints players carry salary cap numbers higher than $10 million for the 2020 season. Unsurprisingly, one of them is Drew Brees; the quarterback is due to count $23.65 million against the 2020 salary cap, more than any of his teammates.

However, the second-ranked contract might raise fans’ eyebrows. That’s right guard Larry Warford, who slots in with a $12.875 million salary cap hit. While Warford has been productive and reached the Pro Bowl as an alternate in each of his first three years with the Saints, his 2019 efforts have reportedly drawn internal criticism from the Saints. He needs to shed some bad weight and execute blocks better in the final year of his deal.

While the Saints aren’t hurting for cap space right now, getting out of Warford’s contract could help out in a big way. An outright release or trade would free up $7.75 million to spend this year.

But who could trade for him? The Athletic’s Sheil Kapadia suggested the Seattle Seahawks give up a third-round pick to take Warford’s contract off the Saints’ hands:

The Seahawks have two second-round picks and two fourth-round picks and can afford to give up the No. 101 selection.

On one hand, that would be a risky move for the Saints. Their focus is on trying to win a Super Bowl. On the other hand, if they felt like Warford’s play was starting to slip last year and liked what they saw out of Easton, perhaps it’s something they might consider.

A trade might make more sense after the draft if the Saints use an early selection on an interior offensive lineman and are willing to accept compensation for the 2021 draft.

The Saints may have an in-house replacement for Warford in Nick Easton, who had logged more NFL snaps at guard than center when the Saints signed him last summer (and he ended up playing 409 snaps in seven games, predominately at left guard). But as noted by Kapadia, it’s also possible that the Saints could target an interior lineman in this year’s draft before deciding to trade Warford. That wouldn’t pay off immediate dividends but it would open the door for a rookie draft pick to help out right away. With a few compensatory draft picks on the way in 2021, acquiring another asset for Warford would give the Saints a strong resource pool to work with later on down the road.

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