Peppers's Contract Reworked

[balta1701-A]

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For the second time in a little more than two years the Chicago Bears have tweaked the contract of defensive end Julius Peppers to create salary-cap room.

 

According to reporter Brian McIntyre, the Bears converted $3 million of Peppers’ $12.9 million base salary for this season to a signing bonus. That reduced his salary for this season to $9.9 million and created $2 million in cap savings for the Bears, who have been right up against the cap.

 

This move reduces Peppers’ salary cap for this season to $14,383,333.

 

Peppers last restructured his contract on Feb. 23, 2011. He is entering the fourth year of the $84 million, six-year contract he signed in 2010.

 

While the move creates flexibility for the Bears this season, it makes Peppers’ cap number in the final two years of the contract grow even more -- $1 million each year. Peppers is scheduled to earn $14 million in 2014 -- $13.9 million in base salary with a $100,000 workout bonus. His cap number now climbs to $18,183,333 for next season.

 

In 2015, Peppers’ base salary is $16.5 million and this move pushes his salary cap for that season to $20,683,335.

[AZ54]

Yes but the question is why? Someone is going to get a longer term deal soon (not a big one) and then they'll be doing something again with Peppers because I now we've put his cap numbers even higher going into next season.

[Stinger226]

Yes but the question is why? Someone is going to get a longer term deal soon (not a big one) and then they'll be doing something again with Peppers because I now we've put his cap numbers even higher going into next season.

I agree, they have a plan.

[Ed Hochuli 3:16]

This is leading up to Peppers being cut next year, and yes, someone getting paid.

[Alaskan Grizzly]

Yes but the question is why? Someone is going to get a longer term deal soon (not a big one) and then they'll be doing something again with Peppers because I now we've put his cap numbers even higher going into next season.

 

Maybe its just a way to shore up the "rainy day" fund. Given the unknowns going into the first game (75% different players from last year?), perhaps management is looking for a way to buy FA players that could contribute if one or two players currently on the team don't work out. My understanding was the team is "up against the cap" so it would make sense.

[madlithuanian]

Probably.

 

Could there be a cap windfall coming?

 

This is leading up to Peppers being cut next year, and yes, someone getting paid.

 

[Mongo3451]

This is leading up to Peppers being cut next year, and yes, someone getting paid.

Yes, unless they do something to alleviate the hit. Kind of odd they are going the other way. I hope they work something out, as Peppers is still a difference maker.

 

I'd like to hear from one our cap heads on what can be done to reverse this trend.

[ASHKUM BEAR]

Yes, unless they do something to alleviate the hit. Kind of odd they are going the other way. I hope they work something out, as Peppers is still a difference maker.

 

I'd like to hear from one our cap heads on what can be done to reverse this trend.

 

He does make a difference, but I think with his age and health (foot) his days are numbered. It will come down to Cutler or Peppers and while im at it, Melton too.

[AZ54]

Impossible to know but the small amount of cap space created by this is odd. If, as many of us believe, Peppers is going to get cut next year and perhaps then they try to renegotiate a new deal why not pursue more space now to make some other signings? I'm sure LT2 could spell out if that might lead to more dead space on our cap next year and if so how much.

[madlithuanian]

In Cliff Stein I trust...

 

I'm positive there is a method to their madness.

 

Impossible to know but the small amount of cap space created by this is odd. If, as many of us believe, Peppers is going to get cut next year and perhaps then they try to renegotiate a new deal why not pursue more space now to make some other signings? I'm sure LT2 could spell out if that might lead to more dead space on our cap next year and if so how much.

 

[bowlingtwig]

Impossible to know but the small amount of cap space created by this is odd. If, as many of us believe, Peppers is going to get cut next year and perhaps then they try to renegotiate a new deal why not pursue more space now to make some other signings? I'm sure LT2 could spell out if that might lead to more dead space on our cap next year and if so how much.

From everything I can find it appears we could still cut him after this yr without it killing us. His cap hit for 2014 is now $18,183,000. If released b4 season the cap hit would be $6,366,000. Cap hit for 2015 is $20,683,000. If released prior to 2015 season the dead money is just $3,183,000.

[Alaskan Grizzly]

I'm not sure what it all means exactly but I would like it to be known that I don't like it. (If the team is positioning to jettison a player like Peppers a year in advance). It's crap. I'll believe that management has a bit more class than that and this is more akin to what Brady has done for the Patriots in the past.

[madlithuanian]

Sorry, but as much as I like Peppy, he's no Brady...

 

It's a QB league, not a DE league...

 

I still think if there is a will, there will be a way. As I siad earlier...I trust Cliff Stein on this.

 

I'm not sure what it all means exactly but I would like it to be known that I don't like it. (If the team is positioning to jettison a player like Peppers a year in advance). It's crap. I'll believe that management has a bit more class than that and this is more akin to what Brady has done for the Patriots in the past.

 

[Alaskan Grizzly]

Sorry, but as much as I like Peppy, he's no Brady...

 

It's a QB league, not a DE league...

 

I still think if there is a will, there will be a way. As I siad earlier...I trust Cliff Stein on this.

 

No, unfortunately its a league all about the allmighty dollar. QB or DE be damned.

 

The comparison I was making was that at some point a person (or team) realizes they have made enough money and are willing to help the team they play for by giving some back to help the team keep or get players that will get the team where it wants to be. It sends an irreverant omen to players if they think they are being used. Maybe Peppers has indicated he wants to retire next year and is willing to take the hit this year? Don't know, but I would hope the team isn't doing what they did with Urlacher and saying 'our way or go away'. It will come back to bite them....

 

I know I'm in the minority but to me it is what it is. A business. And unfortunately the traditionalist aspects are slowly being squeezed out of it.

[madlithuanian]

Gotcha.

 

Not sure anyone disagrees it's a business... Has been since the day it was created.

 

But, for us fans, it's more.

 

 

 

No, unfortunately its a league all about the allmighty dollar. QB or DE be damned.

 

The comparison I was making was that at some point a person (or team) realizes they have made enough money and are willing to help the team they play for by giving some back to help the team keep or get players that will get the team where it wants to be. It sends an irreverant omen to players if they think they are being used. Maybe Peppers has indicated he wants to retire next year and is willing to take the hit this year? Don't know, but I would hope the team isn't doing what they did with Urlacher and saying 'our way or go away'. It will come back to bite them....

 

I know I'm in the minority but to me it is what it is. A business. And unfortunately the traditionalist aspects are slowly being squeezed out of it.

 

[Alaskan Grizzly]

Gotcha.

 

Not sure anyone disagrees it's a business... Has been since the day it was created.

 

But, for us fans, it's more.

 

Funny, not only do they need a spell checker but a thought/context checker when people are posting.

 

My 'minority' comment was in regards to my opinion of how the team woefully handled the Urlacher situation. I think he deserved one more year as did Lovie. But because the NFL is a business, tradition and 'second chances' sometimes get in the way. Again, my opinion which I know is in the minority.

[CrackerDog]

I'm not sure what it all means exactly but I would like it to be known that I don't like it. (If the team is positioning to jettison a player like Peppers a year in advance). It's crap. I'll believe that management has a bit more class than that and this is more akin to what Brady has done for the Patriots in the past.

 

Please note that the "concessions" Peppers has given thus far are in converting salary to bonus. This means he's gotten paid all of the money he was due in any given year. He therefore hasn't given up a thing, it's just an accounting entry that makes some of his money count against the Bears caps in the future.

 

I'd expect the team to go to him and negotiate a new deal which takes into account his current contributions on the field this offseason. If they still see him as an A+ player, he'd get a deal that reflected that. If his skills have diminished, the new deal would reflect that. They'd have to tear up his current contract regardless, which would mean the $6 million hit will take place no matter what else comes about. But if they gave him a $10 million signing bonus and $2 million a year for a three year deal, his cap amount for 2014 would be the $6 million hit plus $5 million for his current deal. That would mean he'd still get $12 million in 2014 and the Bears would only have $11 million against the cap. Much lower than the current deal would cost in cap and real money.

 

At least that's how I think it all works. LT2 is the best resource here for this type of thing, maybe he can confirm. And please note, the numbers I use above are all speculative. I have no idea what the real value of a DE at his age would be.

[Alaskan Grizzly]

Please note that the "concessions" Peppers has given thus far are in converting salary to bonus. This means he's gotten paid all of the money he was due in any given year. He therefore hasn't given up a thing, it's just an accounting entry that makes some of his money count against the Bears caps in the future.

 

I'd expect the team to go to him and negotiate a new deal which takes into account his current contributions on the field this offseason. If they still see him as an A+ player, he'd get a deal that reflected that. if his skills have diminished, the new deal would reflect that. They'd have to tear up his current contract regardless, which would mean the $6 million hit will take place no matter what else comes about. But if they gave him a $10 million signing bonus and $2 million a year for a three year deal, his cap amount for 2014 would be the $6 million hit plus $4 million for his current deal. That would mean he'd still get $12 million in 2014 and the Bears would only have $10 million against the cap.

 

At least that's how I think it all works. LT2 is the best resource here for this type of thing, maybe he can confirm. And please note, the numbers I use above are all speculative. I have no idea what the real value of a DE at his age would be.

 

Thanks for the clarity. That does make some sense. On the surface, especially with the talk of possibly cutting him next year, 'something is rotten in Denmark'. But I assume that what you just explained is being sold to both Peppers and his agent to explain their rationale. To which I would defer MadLiths eariler comment about trusting Stein. He probably knows what he's doing. (Not MadLith but Stein - ha ha).

 

Most of this cotractual talk is all greek to me. One of the several reasons I'm not an NFL exec, just a fan.

[LT2_3]

I'm not sure what it all means exactly but I would like it to be known that I don't like it. (If the team is positioning to jettison a player like Peppers a year in advance). It's crap. I'll believe that management has a bit more class than that and this is more akin to what Brady has done for the Patriots in the past.

 

It doesn't mean anything more than it did before the reworked his contract. They needed about $2 mil in cap space just for maneuvering during the season. Now that the season has begun, every single cap hit counts. That means that if a player gets injured and they need to replace him, they need cap space to pay both the guy on IR and the new guy.

 

Does this mean anything about their future intentions toward Peppers? No. Absolutely not. It would only mean something if they had pushed more of this year's cap into the future. As it is now, it only increases his cap hit in each of the next 2 years by $1 mil each. Considering how many guys are going to need new contracts, $1 mil in cap space isn't going to keep even one guy that otherwise might be lost.

 

As for Peppers' long term prospects with the Bears, I am quite sure that nothing is set in stone. I'm pretty sure that his play will be evaluated after the season and then a determination will be made. While his cap hits are higher than most players in the league, much of that is due to past contract re-negotiations to gain cap space. If a team starts doing re-negotiations like this and then releases the player the following year, the team is going to lose the good will of the players and they will decline to renegotiate when asked.

 

IMO for Peppers to be released, his play has to fall off a cliff and /or be injured. His dead money next year if released (after this renegotiation) is $8.36 million. That's an awful big cap hit to cover for a guy not playing for you.

 

One more aside - Cliff Stein is really good at his job, but the decision making resides with the GM. I think many don't want to give Angelo any credit for anything, but it was really his conservative approach that kept us so well off with the cap for so long. Angelo really didn't shop in the premium echelon during free agency other than Tait, Moose, and Peppers. He also only made it to the SB once.

 

It's still too early to tell Emery's cap management style since he's still doing a roster make over. They could have easily gained the cap space they needed by releasing E. Bennett or Devin Hester, or extending the contracts of Tillman, or Jennings, or Marshall, or Cutler.

[madlithuanian]

I think the team handled Smith perfectly!

 

However, Urlacher, they could have done it a littler better. I don't begrudge the final end result...just wish it would have been smoother and more transparent. Who knows, maybe Emery will walk away the wiser.

 

Funny, not only do they need a spell checker but a thought/context checker when people are posting.

 

My 'minority' comment was in regards to my opinion of how the team woefully handled the Urlacher situation. I think he deserved one more year as did Lovie. But because the NFL is a business, tradition and 'second chances' sometimes get in the way. Again, my opinion which I know is in the minority.

 

[Alaskan Grizzly]

It doesn't mean anything more than it did before the reworked his contract. They needed about $2 mil in cap space just for maneuvering during the season. Now that the season has begun, every single cap hit counts. That means that if a player gets injured and they need to replace him, they need cap space to pay both the guy on IR and the new guy.

So I did have one thing right. That's encouraging.

 

Does this mean anything about their future intentions toward Peppers? No. Absolutely not. It would only mean something if they had pushed more of this year's cap into the future. As it is now, it only increases his cap hit in each of the next 2 years by $1 mil each. Considering how many guys are going to need new contracts, $1 mil in cap space isn't going to keep even one guy that otherwise might be lost.

Also good to hear.

 

As for Peppers' long term prospects with the Bears, I am quite sure that nothing is set in stone. I'm pretty sure that his play will be evaluated after the season and then a determination will be made. While his cap hits are higher than most players in the league, much of that is due to past contract re-negotiations to gain cap space. If a team starts doing re-negotiations like this and then releases the player the following year, the team is going to lose the good will of the players and they will decline to renegotiate when asked.

- Exactly. And I agree, that if he can't produce this year then discuss with him after the season is over, not make motions like you intend to before this season even starts. Regardless of his age, Peppers is still a force to be reckoned with. (The point you enforce below).

 

IMO for Peppers to be released, his play has to fall off a cliff and /or be injured. His dead money next year if released (after this renegotiation) is $8.36 million. That's an awful big cap hit to cover for a guy not playing for you.

 

One more aside - Cliff Stein is really good at his job, but the decision making resides with the GM. I think many don't want to give Angelo any credit for anything, but it was really his conservative approach that kept us so well off with the cap for so long. Angelo really didn't shop in the premium echelon during free agency other than Tait, Moose, and Peppers. He also only made it to the SB once. It's still too early to tell Emery's cap management style since he's still doing a roster make over. They could have easily gained the cap space they needed by releasing E. Bennett or Devin Hester, or extending the contracts of Tillman, or Jennings, or Marshall, or Cutler.

Altough he did try a few others that didn't work out; Chester Taylor, Brandon Manumanluena and Orlando Pace to name a few. But I agree sometimes Angelo didn't get enough credit for some of the good he did do. Bringing Peppers to Chicago was one of them.

 

Thanks for the explanation. It does help me better understand some of the 'behind the scenes'.

[Alaskan Grizzly]

I think the team handled Smith perfectly!

 

Of course you did. Lovie Smith to me is like J'Marcus Webb is/was to SCS.

 

 

[madlithuanian]

 

No. Smith at least did some things very well... I disagree, but understand the argument and reasoning behind it. I give Smith a C+/B-...Webb gets a D+ at best.

 

 

 

 

 

Of course you did. Lovie Smith to me is like J'Marcus Webb is/was to SCS.

 

[Ed Hochuli 3:16]

He does make a difference, but I think with his age and health (foot) his days are numbered. It will come down to Cutler or Peppers and while im at it, Melton too.

There are a bunch of guys who they'll need to keep. Conte, Wright, Jennings, Slauson, Wootton and more are players who could all have big seasons who may need to be retained.

['TD']

 

No. Smith at least did some things very well... I disagree, but understand the argument and reasoning behind it. I give Smith a C+/B-...Webb gets a D+ at best.

They get a D from me.

 

The offense was in the 10 worst offenses in yards 10 out of the last 11 years. They just get points for putting their name on it and Forte from me.

 

They had the benefit of ignoring the offense in favor of the Defense. I'll give them a B on that, since while they presented a top defense a lot of the time, they also had more to work with there as they ignored the O. The year Lovie tried to call the plays on D, it was atrocious.

 

Over all I give Angelo and Lovie a grade of D+ a piece, which is good since all they cared about in Chicago was improving their D. They did with a plus.