On Tuesday, news broke that Ravens CB Lardarius Webb had restructured his contract in order to create Cap space for the Ravens and allow Webb in remain in a Ravens uniform. Since Tuesday, though, very few details have been made public regarding Webb’s restructure and the amount of Cap space created.
Aaron Wilson of The Baltimore Sun has provided some details:
Lardarius Webb to make $6 million 2015 instead of $8 million in restructured deal, due to make $18 million over next three yrs, per sources
— Aaron Wilson (@RavensInsider) March 17, 2015
Lardarius Webb restructure includes $5.5 million guaranteed, including a $3 million bonus, according to league source
— Aaron Wilson (@RavensInsider) March 18, 2015
Wilson’s article in The Sun contains the following additional information:
Under the new arrangement, Webb is due to make roughly $18M over the next 3 years if 62-percent playing time thresholds are reached. He’s now due to make $6M in both 2016 and 2017 if he reaches those playtime qualifiers.
Prior to the restructure, the breakdown of Webb’s contract was:
Based on Wilson’s reports, we can glean some details and try to piece together the ramifications of Webb’s restructure:
1. Webb clearly is taking less. He was due $24.5M over the next 3 years and according to Wilson will now make a maximum of $18M over the next 3 years under the terms of the new deal.
2. The $18M is the maximum based on playing time incentives (62%). Based on that number, it would seem to make those thresholds, at least initially, Not Likely To Be Earned (NLTBE) incentives, which means they don’t initially count against the Cap and only count in the following year if actually earned.
3. Webb is due $6M in “compensation”, which includes a $3M bonus. The $3M bonus is prorated over the 3 years of the deal, which will lessen its impact on the 2015 Cap.
4. $5.5M is guaranteed.
So, what does all of this mean?
The two most key factors, at least as far as 2015 goes, are the signing bonus of $3M and the guaranteed money of $5.5M. Usually, the guaranteed money would include the signing bonus and the first year base salary. But, in this case, as reported, that would seem to be $6M, not $5.5M. This, though, is possibly where the incentives come in. Based on the playing time incentive report, the $500K difference could well be NLTBE incentives that would not count against the 2015 Cap. That would mean a $3M bonus, $2.5M salary and $500K in NLTBE incentives.
So, the new deal could look like this – worst case scenario (no incentives):
Or, possibly, this, if the $500K in incentives is part of the 2015 compensation:
Again, please note that the 2016 and 2017 base salaries have yet to be disclosed and, based on the reports, it appears that those will be less than $6M, since part of that $6M in compensation would appear to be incentives that may not immediately count against the Cap. This, of course, would lower the Cap numbers for 2016 and 2017.
So, for 2015, it would appear that the restructure will create somewhere between $4-4.5M in Cap savings for the team. Or, at least, based on the information presently available that would seem to be the case. As such, Webb and the Ravens arrived at a way to keep Webb on the team (at a position of great need) and create much needed Cap space to help the time address its many roster issues.