FanPost

A Cap Question from the Uninformed


I like football, you know, on the field.

I don't know anything about the admin side of the game, so I ask the following question fully aware of the ignorance it likely evidences; yet I must know.

What prevents a team (say, the Texans) from signing a player (say, Mario) to a contract with a large guaranteed amount spread out over an unrealistically long contract term? Before you argue that no player would wait 20 years for his money, the team (or some related entity created for this purpose) would then enter into a factoring agreement with the player to purchase the rights to the contract payments for a lump sum.

The goal is, of course, to break up a $40MM guaranteed contract into manageable $1.5-$2MM annual cap hits while paying the player his $30-$35MM (there's a discount for the present value of the money), while still getting the player his money over a shorter period of time. While 20 years of liability seems burdensome, a) its a commercial decision for the team, and b) since they own the rights to the payments, they can always agree with themselves to restructure the contract in any year where they have excess cap space to pay off the contract early.

I can't have been the first to think of this, so why is it not done? Is it prohibited by the league or are there other considerations that make it unworkable?




X
Log In Sign Up

forgot?
Log In Sign Up

Please choose a new SB Nation username and password

As part of the new SB Nation launch, prior users will need to choose a permanent username, along with a new password.

Your username will be used to login to SB Nation going forward.

I already have a Vox Media account!

Verify Vox Media account

Please login to your Vox Media account. This account will be linked to your previously existing Eater account.

Please choose a new SB Nation username and password

As part of the new SB Nation launch, prior MT authors will need to choose a new username and password.

Your username will be used to login to SB Nation going forward.

Forgot password?

We'll email you a reset link.

If you signed up using a 3rd party account like Facebook or Twitter, please login with it instead.

Forgot password?

Try another email?

Almost done,

By becoming a registered user, you are also agreeing to our Terms and confirming that you have read our Privacy Policy.

Join Battle Red Blog

You must be a member of Battle Red Blog to participate.

We have our own Community Guidelines at Battle Red Blog. You should read them.

Join Battle Red Blog

You must be a member of Battle Red Blog to participate.

We have our own Community Guidelines at Battle Red Blog. You should read them.

Spinner.vc97ec6e

Authenticating

Great!

Choose an available username to complete sign up.

In order to provide our users with a better overall experience, we ask for more information from Facebook when using it to login so that we can learn more about our audience and provide you with the best possible experience. We do not store specific user data and the sharing of it is not required to login with Facebook.

tracking_pixel_9341_tracker