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Wednesday, March 27, 2013

Jordan Gross Restructures

Jordan Gross took an odd form of paycut today, in a form I'm still trying to totally understand.

Gross' 2013 and 2014 salaries are dropped to $1 million. Gross received $4.5 million in signing bonus to do so - spread out over new years of 2015-17.  So $900,000 is spread across each year.  But, 2015 and on will void if Gross is on the roster on the 5th day of the 2014 league year.

So, that gives Gross and the team two options.  One, renegotiate before that day in 2015, to change the contract to add those years in some form, or two, take the '15-17 proration in '14.  Even then, that's a cap hit of $4.6 million ($1 million base, plus 4/5 of the $4.5 million), much more reasonable than the over $10 million from this year.  

So, Gross gets money now, $4.5 million worth, and in exchange, the team has dropped over $15 million in salary - that may or may not have been earned by Gross anyway.   Essentially, he moves to a "prove it" deal this year.
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