Breaking Down the Cap: Fargas

When Fargas signed his three-year contract, he received a signing bonus of $6 million. That is spread out over the three years. $2 million each 2008, 2009 and 2010.

He received $605K in 2008 base, $2.5 million base for 2009, and $1.5 million base for 2010. Not guaranteed base salary.

The cost to cut or TRADE him has been reported to be $5.3 million. The reason for this cap charge is due to the prorated bonus money he is due totaling $4 million. That also means he has $1.3 million in likely to be earned incentives in his contract, even if he is unlikely to earn them as the third runningback.

What this basically means, is cutting him now costs us $5.3 million. However, we would save approx $2.6 million in 2010 if Fargas was cut pre-june 1.

However, the league permits two things. You can spread the cap hit over two years for two players before June 1, or as many as you want after June 1.

Essentially, we could decide to take the cap hit of $5.3 million over two years. This prevents us from having to pay the base salary totaling $5 million.

As I wrote in a blog when Fargas signed, Fargas contract can be easily cut to a one-year deal. Basically we would have a cap hit for that in 2009 and 2010, but for the work he gets to walk off with approx $7 million for one season.

However, you have a full acceleration if Fargas is traded, all $5.3 million.

Decide for yourselves what makes sense from the Raiders standpoint.

Posted in Uncategorized Tagged with:

Twitter

  • @Gotnext No butt to cover at this point. I think they are just being honest.
    about 3 hours ago
  • @bylindsayhjones @ChrisHarrisJr Congrats Chris! We just had out second. I don't have the 3 picks, but I'm not complaining.
    about 12 hours ago
  • @gpettooh Probably true. Chargers need to get healthy. Have about a month to do so, but need to also win 3 games and not suffer any more.
    about 12 hours ago
  • Was great talking to @nicolezaloumis and @kirkmorrison about the game this morning. Went about as we expected.
    about 13 hours ago
  • THIS. RT @IanKenyonNFL: Why do people insist on saying THE Bleacher Report? That's not what its called.
    about 13 hours ago