Based on NFLPA records, it appears that Todd Heap has restructured his contract to help the team create Salary Cap space for 2008. This restructure will create $1.7025M in additional Cap space for the team.
Heap was scheduled to have a 2008 Cap number of $5.2M, which included a base salary of $3M and $2.2M in pro-rata bonus shares. The NFLPA’s website now indicates that Heap’s base salary has been reduced to $730K.
It is likely that this restructure was a “simple†restructure which is a commonly used mechanism that teams use to create Cap space. A “simple†restructure is essentially just an accounting procedure by which the player’s base salary is reduced to the veteran minimum ($730K is the veteran minimum for a player – like Heap – who is heading into his 8th year) and the restructured amount is then given to the player as a “signing†bonus. As such, the player still gets the same amount of money, but just gets a sizeable chunk of it sooner and in one lump sum. Because of this, player’s love “simple†restructures and the offer of a “simple†restructure is never rejected by the player.
The effect of a “simple restructure†is that the restructured amount that becomes a new “signing†bonus – in this case, $2.27M ($3M – $730K) – is then spread out for Cap purposes over the remaining length of the player’s contract. Since Heap is signed through 2011, the new signing bonus of $2.27M is spread out over 4 years at a pro-rated amount of $567.5K per year. This will increase his 2009, 2010 and 2011 Cap numbers by $567.5K per year, but will, for 2008, produce a new Cap number of $3.4975M. This number comprises his new base salary of $730K, plus this year’s pro-rata share of past bonus money ($2.2M) and the 2008 portion of the new bonus money ($567.5K). As such, this restructure allowed the Ravens to save $1.7025M in Cap space ($5.2M – $3.4975M) for this year.
