http://www.sportsline.com/nfl/story/7145465
How in the world do the Washington Redskins sign free agents to blockbuster contract upon blockbuster contract?
No question has been bandied about in watering holes or near water coolers more this offseason by NFL fans and front-office folks. Even players from other teams have tried to find out the secret equation owner Dan Snyder uses to stockpile his team in a fashion usually reserved for the House that Ruth Built.
Clinton Portis gives Joe Gibbs a running back who could lead a Super Bowl run -- if he's healthy. (AP)
In an attempt to clear up the question of "how and why can they do it," SportsLine.com grilled other teams' general managers and capologists, agents and some Redskins people to break down how Snyder has been able to stockpile the past several seasons while others sit somewhat idly by.
Let's begin by breaking down a handful of the Redskins' deals. The figures were compiled using actual contract breakdowns Washington turned into the league -- the same numbers that are issued to other clubs.
The first obvious trend that is the structure of the signing bonus as opposed to salaries. The best example is the contract of wide receiver Laveranues Coles, who last year signed a huge seven-year, $35 million deal that included a $13 million signing bonus. Sounds like a huge chunk of change, and it is.
But Snyder kept other costs down by keeping Coles' salary (or Paragraph 5, as it is known inside the NFL) at the league minimum for the first two years of the deal. In Year 3 it only jumps up to $1.5 million before ballooning to $3 million the next year. That season also includes another $2 million roster bonus.
His cap figures for the first three years are just $2.3 million, $2.3 million and $3.3 million after the signing bonus is prorated over seven years. In 2006, it jumps to nearly $7 million.
To further offset his costs, Snyder deferred Coles' $13 million bonus over a three-year period. Thus, Snyder only gave Coles a total of $4.5 million last season. On top of that, Snyder gets to put the remaining $9 million of future bonus money into escrow and has a chance to draw interest on the deferred obligation.
Coles' deal is just one of many structured in this way:
Quarterback Mark Brunell's deal includes $34.26 million in salary over seven years and an $8.6 million option bonus prorated over six years. Snyder split this bonus in three payments as well by giving the veteran quarterback $2.866 million within 15 days of signing, $2.866 million next April and $2.866 million in April of 2006. Again, his salaries for the first two years are kept extremely low: $760,000 for the first year and $1.5 million for the second. His cap numbers include $2.193 million for this year and a very respectable $3.433 million for 2005.
Offensive guard Randy Thomas signed a seven-year deal that included a stunning (at the time) $7 million signing bonus and $20.63 million in salary. Of the bonus, $2 million was paid last year, $2 million will be paid this year and $3 million will be paid next season. His total salaries for the first two years equal $1.53 million. He counts just $1.53 million against last year's cap and $2 million against this year's figure.
Another area where this structure is smart is the psychological dependency. In many cases where players sign for a large sum up front but receives minimal salaries, they end up getting antsy a couple of years into the deal. They get $1 million or less per year while they see teammates collecting large weekly paychecks and others receive large signing bonuses. Snyder's guys instead are ensured of a nice payday every offseason for the first three years of their deals.
So now the $100 million question: Why wouldn't every team take this approach?
Shawn Springs has the talent to replace Champ Bailey, he hasn't played a full season since 2000. (AP)
The answer lies in actual money paid and the risk of future salary-cap misery. First of all, not everyone has Snyder's gold-lined pockets. According to official league figures sent to each club and dated Nov. 25, 2003, the Redskins led the NFL in "dead money" -- cash paid out to players no longer employed by the team -- last year with $14.5 million. That figure was double the league average of $7.3 million. In 2001, they paid out $14.8 million to players no longer on their team and $13 million in 2002. For fans, that may seem like the price of doing business, but most bosses would be reluctant to shell out $45 million for people who don't work for them anymore.
The other major problem with this structure is the ominous cloud that hangs over the future. Snyder is banking on each of these players being healthy, staying out of trouble and producing at a Pro Bowl level. If any of the players are unable to play a full few seasons or end up slowing down, the Redskins will still be locked into a huge cap number for a guy they can't get rid of.
Guys like Brunell, Shawn Springs, Marcus Washington and even Cornelius Griffin are far from sure things. Clinton Portis is a bona fide stud, but he has had some injury problems already. Should Portis be injured and sidelined for an extended period, the Redskins will be in a terrible position of having a player who cannot perform at a Pro Bowl level making an outlandish amount of money and taking up cap space. They wouldn't be able to purge the player by accelerating his signing bonus.
Also, because the salaries are low, the Redskins have to get rid of players (like perennial Pro Bowl cornerback Champ Bailey) in order to cut cap space rather than adjust a player's salary like most teams do.
The moral of the story? The Redskins are thinking short-term, and if they win the trophy that Robert Kraft and the Patriots have gotten quite familiar with in recent years, then the dead money might be worth it. It's the same philosophy that helped the 49ers to superiority in the mid-1990s before the cap decimated their roster and morale. If the Redskins don't win it all, Snyder ends up paying out an awful lot of cash for the prettiest looking horse that never makes it to the winner's circle. If it pays off, he buys himself the Lombardi.