Tag: cap hit

Andrus Peat contract structure might give Saints an early way out

The New Orleans Saints signed Pro Bowl left guard Andrus Peat to a five-year contract extension, but the deal’s structure may cut it short.

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The New Orleans Saints lit up the fan base early in free agency with a controversial five-year, $57.5 million contract extension with left guard Andrus Peat. While Peat has twice made the Pro Bowl as an alternate, high-variance performance and a still-growing injury history gave many fans cause about committing so many resources to someone who was viewed as replaceable.

For the detractors: there’s reason to think the Saints may share some of their concerns, based off the structure in Peat’s contract. Of that $57.5 million total, just $33.85 million of it is guaranteed, including a $13 million signing bonus prorated over the length of the deal. But what’s interesting is a trigger written into it in 2021.

Peat’s base salary for 2022 ($10.85 million) will become fully guaranteed on the third day of the 2021 league year, giving the Saints a three-day window in which to make a decision. If Peat has not played up to expectations in 2020, they will have an opportunity to get out of his contract through a possible trade (freeing up just $1.2 million in cap space) or post-June 1 cut (saving nothing in 2021, but creating plenty of spending room down the road by prorating).

However, it’s more likely that the Saints will ride out the first three years of Peat’s contract. The savings don’t really make getting rid of him worth it until 2022 at the soonest, especially when those savings are counted against the dead money his contract would leave behind (meaning checks the Saints must write to a player not on their roster). This graph illustrates why it may take some time for the savings of life without Peat may be worth the trouble:

In other words: the view won’t be worth the climb until 2022 at the earliest, and likely not until 2023 (when cutting him would free up $9.225 million against the cap while leaving just $5.2 million behind in dead money). So Peat can safely be penciled in as the starting left guard in New Orleans for the next three seasons. That’s not ideal for those who didn’t want to see Peat connected long-term with the Saints, but a three-year contract is better than a five-season deal.

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Updated reports say Janoris Jenkins signed two-year extension with Saints

Initial reports claimed Janoris Jenkins renegotiated a contract including voided years, but he will play for the Saints on a long-term deal.

A downside to the NFL’s new work-from-home practices in reaction to the coronavirus pandemic might be that information travels a little slower than it used to. With so many important figures working remotely — including general managers and head coaches, team contract negotiators, agents representing players, and the players themselves — it takes a bit longer for news to travel through the grape vine. There’s simply fewer eyes in the room to leak the details on which offers were on the table.

That’s the case for the New Orleans Saints and cornerback Janoris Jenkins, who NFL Network’s Ian Rapoport reported agreed to a two-year contract extension paying out $16.75 million in new money; combined with his current deal, that looks like a three-year $27 million agreement with $10.2 million in guarantees.

It’s also a big shift from the previously-reported news that Jenkins and the Saints did not reach an agreement on a long-term deal, instead settling on a restructure that created short-term salary cap space while allowing Jenkins to test free agency in 2021. We know now that’s not the case, and Jenkins will play for the Saints after next year.

So how does this new deal impact the Saints salary cap situation? Nick Underhill of NewOrleans.Football reported Jenkins will count for the following salary cap hits:

  • 2020: $5.05 million
  • 2021: $14.2 million
  • 2022: $8.75 million

However, these essentially work out like team options in the next few years, because the Saints can cut Jenkins with little financial penalty should he not play up to expectations (or fall off a cliff, talent-wise; he’ll be 34 in 2022, an age few corners perform well at). Per Over The Cap, the Saints can save $8.2 million in 2021 and $5.75 million in 2022 by releasing Jenkins, should they choose to do so.

So all in all, this is a much better deal for the Saints than what was initially reported. They’ve saved salary cap space this year and will get a return on their investment by having someone on their payroll actually play for them. For Jenkins, he gets some stability (and an instant $9 million payout) and the opportunity to stick with a team he obviously enjoyed playing for last season.

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Details, salary cap impact of renegotiated Saints-Janoris Jenkins deal

The New Orleans Saints saved nearly $7 million against the 2020 NFL salary cap by renegotiating a contract with cornerback Janoris Jenkins.

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Just how much salary cap space did the New Orleans Saints create in their restructured contract with veteran cornerback Janoris Jenkins? ESPN’s Field Yates followed up his initial report on the agreement with details, finding that the Saints opened up about $7.2 million in this maneuver. But it’s important to remember that it’s not the same thing as Jenkins taking a pay cut, and the Saints haven’t really saved any money here. They’ve just kicked another can down the road.

Yates reported that the Saints converted $9 million of Jenkins’ existing $10.25 million base salary into a signing bonus, which was prorated into further payments in 2021 and 2022. However, the Saints weren’t able to agree on a real contract extension — each of those years automatically void after the 2020 season, which will allow Jenkins to test unrestricted free agency next year. That’s probably due as much to his age (from the team’s perspective; few cornerbacks play at a high level deep into their 30’s) as Jenkins’ desire to cash in once new television contracts have juiced up the always-rising salary cap.

The end result is that the Saints are on the hook for $4.05 million against the 2020 salary cap, but they will be charged a combined $7.2 million next year when Jenkins isn’t on the roster anymore. The good news is that if he does leave, they should qualify for a high compensatory draft pick in the following year, and conservative estimates place the 2021 salary cap at roughly $220 million, so it’s a hit the Saints can absorb. It would just be nice if a player on payroll was actually seeing the field.

But the priority in New Orleans is to win now, and slotting Jenkins in opposite Marshon Lattimore as the number-two cornerback gives them their best chance at accomplishing that. The Saints always try to maximize their resources during the offseason and this is just another example of that. But don’t be shocked if they target a cornerback prospect high in next month’s NFL draft, anticipating Jenkins’ departure after the season.

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Details on the new Drew Brees contract, 2020 cap hit

New Orleans Saints quarterback Drew Brees re-signed with the team on a team-friendly contract carrying serious salary cap implications.

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Details on the new contract extension agreed to between Drew Brees and the New Orleans Saints are beginning to emerge, with ESPN’s Field Yates first reporting that the two-year, $50 million deal with Brees features a base salary of just $2 million in 2020. But as usual, it’s a little more complicated than that.

The new Brees deal also features a 2021 base salary of $25 million, and a roster bonus of $23 million (which will be paid out in prorated installments as a signing bonus). Automatically voided years in 2022 and 2023 were also added, which will spread that roster bonus out into annual salary cap hits of $5.75 million (in addition to other charges).

Brees was already due to count for $15.9 million against the 2020 salary cap, with a $5.4 million cap hit in 2021. The Saints have essentially lumped those payments into the new deal, which will leave behind $11.5 million in dead money once the contract expires in 2022. That’s a lot of math. Are you still with us?

So, here’s what really matters: per Spotrac, Brees has cap hits of $23.65 million (in 2020), $36.15 million (in 2021), and $11.5 million (in 2022, after he’s presumably retired). Brees will still be paid $25 million per year in each of the next two seasons, and leave behind a modest salary cap penalty once he’s finished playing. However, it’s worth noting that he will count a whopping $47.65 million against the salary cap if he does retire after the 2020 season. So root for him to see this deal through its expiration.

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Recent history suggests a Jimmy Graham-Saints reunion can’t be ruled out

The Green Bay Packers aren’t expected to retain Jimmy Graham in 2020, per NFL Network. Could the New Orleans Saints explore a reunion?

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Here’s a blast from the past: NFL Network’s Ian Rapoport reported that tight end Jimmy Graham is not expected to return to the Green Bay Packers, meaning that a release is likely in the cards. The Packers can create $8 million in salary cap space by cutting or trading Graham. So, we have to ask: could he make up with the New Orleans Saints?

Graham’s trade to the Seattle Seahawks back in 2015 sent a shockwave throughout the NFL, and was the culmination in a fractured relationship with the Saints. Graham bristled at Saints coach Sean Payton’s involvement in franchise tag arbitration hearings, and coaches in turn grew frustrated with Graham’s inconsistent effort level in games late in his tenure. It’s a shame that things ended on such a sour note after his star-studded debut, having caught 54 touchdowns in 82 games with the Saints (including the playoffs).

The big tight end dealt with injuries and struggled to make an impact in the run-first Seahawks offense, reeling in just 19 touchdown passes in 45 games despite being paired with Russell Wilson. His performance continued to trail off in Green Bay, connecting with Aaron Rodgers on just five scoring plays in 36 games. Touchdowns aren’t everything, but in this case, they’re emblematic of Graham’s decline. By every measure, Graham is probably nearing the end of the road in the NFL.

But we shouldn’t dismiss the idea that the Saints might give him another shot. They were interested in Graham before the 2018 season (though he ultimately signed with the Packers), suggesting that the hatchet’s been buried, the beef has been squashed, and amends have been made. Or close to it.

The Saints have brought back a number of retreads later in their careers in the Sean Payton era, including Graham’s former mentor, Ben Watson. Others included Robert Meachem, Patrick Robinson, Chase Daniel, Jonathan Goodwin, Stephone Anthony, Manti Te’o, and Jahri Evans (who also shared a cup of coffee with the Packers). Graham returning for a year would follow that pattern.

However, the role he might play wouldn’t resemble the one-man highlight reel fans remember. Graham would be a luxury addition as a third-stringer behind Josh Hill (40.6 snaps per game in 2019) and Jared Cook (35.9 snaps per game), classified somewhere between a veteran band-aid and a situational “break glass in case of red zone drill” option. Graham doesn’t offer much as a blocker, and he struggles to stretch the field vertically after a series of lower-leg and foot injuries. But his one-of-a-kind catch radius could pair well with Drew Brees’ accuracy, especially when the field shrinks down inside the opposing 20-yard line.

So, this is a situation to monitor. In a perfect world, the Saints would land a young, athletic tight end who can pick up Hill’s blocking-oriented playbook in 2020 before replacing Cook as the primary receiving threat in 2021 (when Cook’s two-year contract is set to expire), like, say, LSU prospect Thaddeus Moss. But that’s not something they can count on, and it might be smart to add Graham as a veteran experienced in their system until that long-term fix is identified. As long as Graham is willing to accept such a bit part in the offense, and at the right price, of course.

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