Candidates to Follow Brady's Lead

Candidates to Follow Brady's Lead

Contract restructurings have been on the rise since the lockout ended because there has been minimal growth in the cap. With the salary cap expected to only increase from $120.6 million to $122 million this year, there could be plenty of restructurings before the 2013 league year begins on March 12 when all teams must be under the cap.

A contract restructuring is different from a pay cut. In a typical restructuring, a player will convert some portion of his base salary or roster bonus (without reducing salary) into a signing bonus because it can be prorated or spread out evenly over the life of a contract (most other salary components usually can’t be prorated) for a maximum of five years. The team gets a lower cap number in the current season while the player gains more short-term security and potentially a better payment schedule in the current year of his contract. The player’s cap numbers in the remaining contract years also increase, which can make him more susceptible to becoming a cap casualty in the future.

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