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Stand Ablaze
01-01-2008, 03:25 AM
http://www.denverpost.com/broncos/ci_7854014
Longtime tackle tells Broncos he's retiring after conceding his play was subpar
By Bill Williamson
The Denver Post

The reconstruction of the Broncos took another dramatic step Monday — on the first day of the offseason — when longtime offensive tackle Matt Lepsis told coach Mike Shanahan he was retiring.

"It is time for me to move on," Lepsis said. "I am completely sure this is the right thing to do."

When Lepsis, who turns 34 in 12 days, woke up Monday, a day after Denver beat visiting Minnesota 22-19 in overtime, he knew he was done as an NFL player.

"I wanted to let the team know as soon as possible," Lepsis said. "The organization was so good to me, and I felt like I needed to tell them right away."

The former University of Colorado standout said one of the reasons for his retirement after 11 NFL seasons is he felt his play was slipping.

Potential replacements for Lepsis at left tackle include Ryan Harris, a third-round draft pick from Notre Dame, and Chris Kuper, who played left guard this year because of injuries.

"There's going to be competition, but I know I'm ready to compete," Harris said. "Matt was a great player and whoever replaces him has a tough job ahead of him, but I'm ready to compete for it."

Lepsis signed with Denver in 1997 as a free agent after four years at CU as a tight end. He became an NFL starter in 1999 and developed into one of the best left tackles in the league. Lepsis signed a four-year contract extension in March 2006 that was to pay him $25 million. Lepsis leaves more than $9 million in salary on the table with his retirement.

Lepsis' 2006 season ended in the seventh game when he suffered a torn anterior cruciate ligament in his right knee. This season, Lepsis said his knee held up but his play wasn't up to a high standard.

"Mike (Shanahan) would call me out for not playing very well, and I had to agree with him," Lepsis said. "I'd say, 'You're right, I'm playing like crap.' I didn't want to go make all that money and not give the team what I was supposed to.

"I could definitely
still go out and play a few more years, but that's not what I wanted to do. I wanted to go out on my own terms. I feel great about it."

Lepsis will remain in the Denver area with his wife and two children. He said he started to think about retirement as early as September. He went to the stadium Sunday knowing it would be his last game. He had several family members and friends at the game.

The Broncos' offensive line, once considered the premier unit in the NFL, has undergone a major change, and Lepsis' departure continues the metamorphosis.

Center Tom Nalen (torn biceps) and left guard Ben Hamilton (concussion) are expected to return from injuries that put them on injured reserve this season. Nalen has one more year on his contact and has maintained he will play in 2008. Chris Myers and Kuper replaced Nalen and Hamilton this season.

"I think the offensive line is going to be fine," Lepsis said. "I was really impressed by Ryan Harris and the veterans are coming back, and Chris Myers and Chris Kuper did a good job. They'll be fine.

"I know one thing, I'll be watching. I've just turned into a huge Broncos fan."

Tned
01-01-2008, 03:29 AM
Well that quickly ends a lot of speculation. I'm not sure if helps to clear up or muddy the line situation.

Hawgdriver
01-01-2008, 03:31 AM
:salute:

thanks for the hard work, brother.

Sounds like Harris is ready to fill those big shoes. We'll see!

Kapaibro
01-01-2008, 03:51 AM
Thanks Matt. Enjoy retirement! :salute:

DenBronx
01-01-2008, 03:56 AM
im pretty sure this will seal the deal for nalen to retire too.

Watchthemiddle
01-01-2008, 04:10 AM
im pretty sure this will seal the deal for nalen to retire too.

Possibly the end of two great linemen in the Bronco rushing dominance era.

Best of Luck to Lepsis!! :salute:

Italianmobstr7
01-01-2008, 04:18 AM
Another great leaving. He might be ring of fame worthy in 5 years. His play was down this year, but he played great for us for a long time. Congrats on a great career.

BigBroncLove
01-01-2008, 04:50 AM
LEpsis was one of the all time great Broncos. HE came in as a TE and quickly became a force at LT, not something easy to do. While his play has slipped, he will still be surely missed, especially for his leadership. Thanks MAtt for all the great years you gave us.

I don't think this makes Nalens future so cut and dry. He has said he intends to return, and given how much Nalen reveals to the press, when he says something I usually believe it. A lot hangs in the balance IMO on whether Hamilton can return at all... that's the one to watch IMO. His concussion was terrible and sounded like a career ender to me when he was put on IR but the coaching staff sounds comfortable in saying he will return next year.

BaiLeY324
01-01-2008, 07:27 AM
Thanks for everything Matt!

Bronco9798
01-01-2008, 08:01 AM
Classy guy. He'll be missed. I'm not sold on Harris replacing him, but he has all off season to get ready and then start competing in camp. It will be interesting.

Scarface
01-01-2008, 08:33 AM
Whoa dude I'm kind of shocked he announced it so early. We're under a lot of pressure to replace him (hopefully upgrade) now. I wonder if Shanny will try to talk him out of it.

BigDaddyBronco
01-01-2008, 08:36 AM
First of many major challenges for the front office. Thanks Matt for the years of service. Got to respect a guy who hangs it up when he feels his skills are slipping.

corzman69
01-01-2008, 08:46 AM
I remember the late '90's and how great we were. I also remember Matt's first plays...ummm false starts as a Bronco.I remember cussing at the TV saying he would never be anything. Boy was I wrong! In time he turned into one of the best and most dependable OL's in the game. Good luck in the future Matt. I hope there is space on the ring of fame for you.

SR
01-01-2008, 09:11 AM
Lepsis was a class act and I've enjoyed watching him in a Broncos uniform. I'm kind of taken back by this, but we drafted Ryan Harris for a reason, so here's to hoping our youngins can fill in and give Jay some protection next season. :beer:

sneakers
01-01-2008, 09:16 AM
Good Luck Matt!

Fan in Exile
01-01-2008, 09:19 AM
I noticed that Line about Kuper replacing him at Left Tackle. I don't really know anything about Harris playing NFL tackle because we haven't seen him, but it makes me feel a little better about our depth knowing that Kuper could be a backup.

champbronc2
01-01-2008, 09:39 AM
im pretty sure this will seal the deal for nalen to retire too.

Shoot!

Well, maybe Nalen wouldn't suck like Lepsis if he played again.

Lepsis still had a great career though.

pnbronco
01-01-2008, 09:46 AM
He is nothing but class. Thank you Matt for all your years of hard work. You will be missed.

Dreadnought
01-01-2008, 09:46 AM
Class act all he way. He wasn't his former self this season, but he's been a staunch warrior for us, and handled this well.

MOtorboat
01-01-2008, 10:19 AM
I'll be honest with you, I love his blocking, I do, I'm a Matt Lepsis fan.

Good luck Matt, thank you. One of the last links to the Super Bowl years.

Retired_Member_001
01-01-2008, 10:21 AM
This was no suprise to me. Lepsis definitely struggled this year alot.

Lepsis was a top Left tackle when he was younger and fitter, it's sad to see such a legend forced to retire but it had to happen. I hope he has a happy life away from football.

As for Nalen I don't think he will retire yet. Maybe one more year, or maybe he'll wait till training camp and see what happens.

This may seal the deal that we're going to draft an offensive tackle in the first round! :D

MHCBill
01-01-2008, 10:36 AM
Thanks to Matt for many great years.

Javon Walker should learn from players like this. He cared more about the team than himself. Lepsis knew his play was subpar this year and instead of hanging around for the dollars (selfish act, i.e. Javon's M.O.) he did what was best for him and the team.

I've really turned the corner on the free agency thing. (I know Javon technically wasn't a FA, but sortof the same thing.) Good teams draft well and have a group of players that play for each other, not themselves.

Denver is in a transition and I am guarded that next year may be better, but probably not a playoff team.

2009... if we have another good draft this year and don't miss on a couple free agents.

I think Nalen will be back for one year since 2008 is the final year on his contract, assuming he's healthy.

Lastly, I'm not totally against free agency, but I think you have to sign the "right" guys. Offensive lineman and players that have shown that they are team first players. Not guys looking for a pay day.

SmilinAssasSin27
01-01-2008, 10:54 AM
GOD, I hope I've been wrong about Harris. Is KUPER being a possible replacement news to anyone else? I thought he was strictly a guard. Anyhoo, If Harris can handle the Left side, we should sign Jordan Gross for the Right. I don't think this will have any bearing on what Nalen does. Nalen, hopefully Hamilton, Kuper, Myers and the hog will be formidable on the inside for now. I can live with this.

Thanx to Lepsis for all he has done for the team. Unfortunately in my eyes, he and Griese will always live in infamy...if not for 1 play against the Jets...

SmilinAssasSin27
01-01-2008, 10:54 AM
Also, what does this do for our cap?

Den21vsBal19
01-01-2008, 10:56 AM
First of many major challenges for the front office. Thanks Matt for the years of service. Got to respect a guy who hangs it up when he feels his skills are slipping.
& no messing around either, he's come out & given the team the most possible time to find his successor :salute:

I wish him well for whatever he decides to do in the future

keithbishop
01-01-2008, 11:20 AM
Also, what does this do for our cap?

Question of the day.



Thanks, Matt, for a strong career....definitely one of my favorite Broncos:salute:. The news shocked me, but speaks volumes of Matt as a person.

BigBroncLove
01-01-2008, 11:32 AM
Also, what does this do for our cap?

http://www.askthecommish.com/salarycap/faq.asp


What happens if a player is traded or retires?

Answer: We already know that if a player is waived on or before June 1, the remaining signing bonus that has not been included in salary “accelerates” and is included in that year’s team salary. Acceleration also occurs when a player is traded or waived and picked up by another team. The new team is not responsible for any of the original signing bonus. The team that waived or traded the player is responsible for the accelerated signing bonus (in the same manner as described above).

In most cases, if a player retires, the remaining signing bonus that has not been included in salary “accelerates” and is included in that year’s team salary. Thus, the team will take an immediate salary cap hit of the remaining signing bonus.

BigBroncLove
01-01-2008, 11:53 AM
So how does that apply to Lepsis? only great news for the Broncos. Lepsis signed a 4 year 25 million dollar deal in 2006. 9 million of that was a bonus, but that entire bonus was payed out in 2006. That means he has zero bonus to accelerate against the cap this year and his salary will free up 4.5 million in space for the Broncos.

Here is a link to the details of his contract.

http://www.rotoworld.com/content/playerpages/player_contract.aspx?sport=NFL&id=1922

Dean
01-01-2008, 11:56 AM
I'll be honest with you, I love his blocking, I do, I'm a Matt Lepsis fan.

Good luck Matt, thank you. One of the last links to the Super Bowl years.

I am a Lepsis fan as well. He was still a good run blocker this year. Football Outsiders has Denver 6th in the league (4.44) at runs around left end and 8th (4.46) over left tackle.

He will be missed.

Stargazer
01-01-2008, 12:49 PM
Not surprised at all by this.

Damn good Bronco! Enjoy retirement!

TXBRONC
01-01-2008, 01:12 PM
Well that quickly ends a lot of speculation. I'm not sure if helps to clear up or muddy the line situation.

Right now I think its a bit muddier and probably will remain that way until we know more about the injury situations to Hamilton and Nalen.

Tned
01-01-2008, 01:25 PM
Thanks to Matt for many great years.

Javon Walker should learn from players like this. He cared more about the team than himself. Lepsis knew his play was subpar this year and instead of hanging around for the dollars (selfish act, i.e. Javon's M.O.) he did what was best for him and the team.


It's important to remember that Javon is only in the second year of his FIRST big contract. He was drafted a few spots before or after Lelie (if I remember correctly), had a break out 3rd year, then tour up his knee in game one of this 4th year, was traded to Denver and signed his first big contract, then after his second year, is being asked to restructure.

From a team, even fan, perspective it makes lots of sense for him to restructure, but you have to remember that this is first a business for the players, and that Javon is only two years into his "set for life" contract.


Also, what does this do for our cap?

Ok, cobbling together from a few sources, it looks like he signed a $25 million contract, with all the guaranteed money ($9 million, in year one). His '06 and '07 salary details according to USAToday were:


Year Team Base Salary Sign Bonus Other Bonus Total Salary Cap Value Position
2007 Broncos $ 3,150,000 $ 0 $ 200,000 $ 6,350,000 $ 5,850,000 OL
2006 Broncos $ 2,800,000 $ 0 $ 6,200,000 $ 9,000,000 $ 6,400,000 OL

This shows $6.2 million in signing bonus, and I guess $2.8 million in '06 (guaranteed) salary.

This means that he has $3.1 million in prorated signing bonuses yet to count against the cap, and with his retirement, this $3.1 million will count towards the Broncos '08 cap number.

Now, he was due an '08 salary of $4.5 million, plus would have counted $1.55 million of his prorated bonus, so.

On the roster in '08, his cap number would have been: $6.05
Retired, his uncounted cap money counts against '08 cap: $3.1

'08 Cap Savings with his retirement $2.95 million
'09 Cap Savings with his retirement (salary only, because all prorated bonus counted in '08): $4.75 million

BeefStew25
01-01-2008, 01:26 PM
I don't really pay attention to the offensive line, but I heard he was really good. Thanks, Matt, for doing whatever you did! I :salute: you!

Skinny
01-01-2008, 01:32 PM
Best wishes to Lepsis.

I wish i could have retired at 33 ... lucky son of a ....

pnbronco
01-01-2008, 01:43 PM
It's important to remember that Javon is only in the second year of his FIRST big contract. He was drafted a few spots before or after Lelie (if I remember correctly), had a break out 3rd year, then tour up his knee in game one of this 4th year, was traded to Denver and signed his first big contract, then after his second year, is being asked to restructure.

From a team, even fan, perspective it makes lots of sense for him to restructure, but you have to remember that this is first a business for the players, and that Javon is only two years into his "set for life" contract.



Ok, cobbling together from a few sources, it looks like he signed a $25 million contract, with all the guaranteed money ($9 million, in year one). His '06 and '07 salary details according to USAToday were:


Year Team Base Salary Sign Bonus Other Bonus Total Salary Cap Value Position
2007 Broncos $ 3,150,000 $ 0 $ 200,000 $ 6,350,000 $ 5,850,000 OL
2006 Broncos $ 2,800,000 $ 0 $ 6,200,000 $ 9,000,000 $ 6,400,000 OL

This shows $6.2 million in signing bonus, and I guess $2.8 million in '06 (guaranteed) salary.

This means that he has $3.1 million in prorated signing bonuses yet to count against the cap, and with his retirement, this $3.1 million will count towards the Broncos '08 cap number.

Now, he was due an '08 salary of $4.5 million, plus would have counted $1.55 million of his prorated bonus, so.

On the roster in '08, his cap number would have been: $6.05
Retired, his uncounted cap money counts against '08 cap: $3.1

'08 Cap Savings with his retirement $2.95 million
'09 Cap Savings with his retirement (salary only, because all prorated bonus counted in '08): $4.75 million

Thanks for the info Tne. I just have one question. Was his bonus 9.3 million to start with? Since they paid him 6.2 and still owe him 3.1.

DenBronx
01-01-2008, 01:47 PM
Ok, cobbling together from a few sources, it looks like he signed a $25 million contract, with all the guaranteed money ($9 million, in year one). His '06 and '07 salary details according to USAToday were:


Year Team Base Salary Sign Bonus Other Bonus Total Salary Cap Value Position
2007 Broncos $ 3,150,000 $ 0 $ 200,000 $ 6,350,000 $ 5,850,000 OL
2006 Broncos $ 2,800,000 $ 0 $ 6,200,000 $ 9,000,000 $ 6,400,000 OL

This shows $6.2 million in signing bonus, and I guess $2.8 million in '06 (guaranteed) salary.

This means that he has $3.1 million in prorated signing bonuses yet to count against the cap, and with his retirement, this $3.1 million will count towards the Broncos '08 cap number.

Now, he was due an '08 salary of $4.5 million, plus would have counted $1.55 million of his prorated bonus, so.

On the roster in '08, his cap number would have been: $6.05
Retired, his uncounted cap money counts against '08 cap: $3.1

'08 Cap Savings with his retirement $2.95 million
'09 Cap Savings with his retirement (salary only, because all prorated bonus counted in '08): $4.75 million


thanks tned.

the reports are saying he is leaving 9 million on the table by walking away. he was also paid all of his remaining bonuses in 2006 and 2007 meaning he has no more bonuses coming to him only salary. so if that is true then i think it's 4.5 mill savings in 2008 and 4.5 mill in 2009.



what if nalen retires? would the same scenario play out? do you have the details on his contract? rod smith? he is almost certain to retire too. it would be nice to get close to 10 million just by a few of these guys retiring. this would really help us in free agency.

tubby
01-01-2008, 01:53 PM
im pretty sure this will seal the deal for nalen to retire too.

I think Nalen and Hamilton talk him out of it rather than follow suit.

Tned
01-01-2008, 02:01 PM
Thanks for the info Tne. I just have one question. Was his bonus 9.3 million to start with? Since they paid him 6.2 and still owe him 3.1.

No, the guaranteed money was $9 million, but it appears his signing/roster bonus (pro-rated) was $6.2 million.

Contracts contain both signing bonuses that are paid up front, which are counted over the life of the contract ($10 million signing bonus with 5 year contract, will result in the player getting $10 million in case day one, but the team will count $2 million against the cap each of the 5 years the contract is in force), and guaranteed salary (relatively new the NFL over the last 5 years or so).

So, it looks like Lepsis signed a $25 million dollar contract, which contained a $6 million signing/roster bonus and $3 million dollars in guaranteed salary in year one ('06). Because only $6.2 million of the guaranteed money was a bonus that would be prorated, then that bonus counted $1.55 million a year against the cap for each of the four years of the contract.

Tned
01-01-2008, 02:19 PM
thanks tned.

the reports are saying he is leaving 9 million on the table by walking away. he was also paid all of his remaining bonuses in 2006 and 2007 meaning he has no more bonuses coming to him only salary. so if that is true then i think it's 4.5 mill savings in 2008 and 4.5 mill in 2009.


No, the 4.5 / 4.5 savings isn't correct, here's why.

Signing bonuses are handled in a certain way, and it was agreed to, mostly because until recent years, the NFL didn't have any guaranteed salary in their contract. So, before signing bonuses, a player could sign a 10 year, $50 million contract, and if after year one, the player was injured or played bad, the team could cut him, and not pay him any of the $45 million left on his contract.

So, the players union and NFL agreed on the concept of signing bonuses. The way a signing bonus works is it seperates when the cash is actually paid, from when it counts against the teams salary cap. So, just for a hypothetical, lets look at a player that signs a 5 year, $30 million contact, that includes $10 million in signing bonuses.



Bonus Bonus
Year Salary Paid Cap Total Cap
1 $2.0 $10.0 $2.0 $4.0
2 $2.5 $2.0 $4.5
3 $4.0 $2.0 $6.0
4 $5.0 $2.0 $7.0
5 $6.5 $2.0 $8.5


Ok, if you look at the above example (uses an escalating base salary figure, which is common in modern contracts), you will see a couple things, first, in year one, the player is paid $10 million in bonus money. This is cash that is physically given to him. However, only $2 million of that counts against the cap in year one, this is the prorated nature of the cap that accomplishes two things. First, it gives the player cash up front, and second, it penalizes a team that wants to cut a player after the first year or two of his contract.

At any point in that contract, if the player is cut or traded, all remaining money in the "bonus cap" column is counted towards the next seasons salary cap. So, in that example above, if the player was cut after season one, then then there would be $8 million of prorated signing bonus that hadn't been counted against the cap ($2 million x 4 years) that would have to be counted agaisnt the cap or escalated. That is $3.5 million more than the $4.5 million cap figure the player would have counted in year two of his contract if he stayed on the roster.

Then, if the player was cut after year two, then the team would have to escalate the last three years ($2 million x 3 years) or $6 million to count against the cap, vs. the $6 million ($4 million in salary, and $2 million in prorated cap) that the player would cost to keep him on the roster, so year three would be a wash in terms of keeping the player or releasing him.

Then, if he was cut after year three, then there is only $4 million left in uncounted bonus money ($2 million x 2 years) that would have to be escalated and counted, but because the salaries increase at the back end of contracts, it would cost $7 million ($5 million in salary and $2 million in cap) to keep the player on the roster, therefore, there is a cap savings of $3 million by cutting the player after the third year.

It is important to understand the seperation of when signing bonuses are paid and when they count against the cap. I will do the above breakdown, but with Lepsis' contract in my next post.

TXBRONC
01-01-2008, 02:36 PM
No, the 4.5 / 4.5 savings isn't correct, here's why.

Signing bonuses are handled in a certain way, and it was agreed to, mostly because until recent years, the NFL didn't have any guaranteed salary in their contract. So, before signing bonuses, a player could sign a 10 year, $50 million contract, and if after year one, the player was injured or played bad, the team could cut him, and not pay him any of the $45 million left on his contract.

So, the players union and NFL agreed on the concept of signing bonuses. The way a signing bonus works is it seperates when the cash is actually paid, from when it counts against the teams salary cap. So, just for a hypothetical, lets look at a player that signs a 5 year, $30 million contact, that includes $10 million in signing bonuses.



Bonus Bonus
Year Salary Paid Cap Total Cap
1 $2.0 $10.0 $2.0 $4.0
2 $2.5 $2.0 $4.5
3 $4.0 $2.0 $6.0
4 $5.0 $2.0 $7.0
5 $6.5 $2.0 $8.5


Ok, if you look at the above example (uses an escalating base salary figure, which is common in modern contracts), you will see a couple things, first, in year one, the player is paid $10 million in bonus money. This is cash that is physically given to him. However, only $2 million of that counts against the cap in year one, this is the prorated nature of the cap that accomplishes two things. First, it gives the player cash up front, and second, it penalizes a team that wants to cut a player after the first year or two of his contract.

At any point in that contract, if the player is cut or traded, all remaining money in the "bonus cap" column is counted towards the next seasons salary cap. So, in that example above, if the player was cut after season one, then then there would be $8 million of prorated signing bonus that hadn't been counted against the cap ($2 million x 4 years) that would have to be counted agaisnt the cap or escalated. That is $3.5 million more than the $4.5 million cap figure the player would have counted in year two of his contract if he stayed on the roster.

Then, if the player was cut after year two, then the team would have to escalate the last three years ($2 million x 3 years) or $6 million to count against the cap, vs. the $6 million ($4 million in salary, and $2 million in prorated cap) that the player would cost to keep him on the roster, so year three would be a wash in terms of keeping the player or releasing him.

Then, if he was cut after year three, then there is only $4 million left in uncounted bonus money ($2 million x 2 years) that would have to be escalated and counted, but because the salaries increase at the back end of contracts, it would cost $7 million ($5 million in salary and $2 million in cap) to keep the player on the roster, therefore, there is a cap savings of $3 million by cutting the player after the third year.

It is important to understand the seperation of when signing bonuses are paid and when they count against the cap. I will do the above breakdown, but with Lepsis' contract in my next post.


Ok so when push comes to shove does this mean that what Lepsis is still owed his going to be problematic?

broncogirl7
01-01-2008, 02:40 PM
This was a great thing Lepsis is doing for the team and I salute him for it. I'd like to see Lynch retire and then be hired as part of the defensive coaching staff. Lynch provides alot of team spirit that could also be utilized in a coaching position.

Tned
01-01-2008, 02:44 PM
Ok, here is Lepsis contract. If you look, the figures (bonus + salary) don't equal $25 million, but based on Rotoworld and USAToday, those bonus and salary figures are correct. What the difference likely is are ptential incentives that he did not reach (games played, make pro-bowl, go to playoffs, etc.).



Bonus Bonus Total Cap Cap
Year Salary Paid Cap Cap If Cut Savings
1 $2.8 $6.2 $1.55 $4.4
2 $3.2 $1.55 $4.7 $4.65 $0.05
3 $4.5 $1.55 $6.1 $3.10 $2.95
4 $4.8 $1.55 $6.3 $1.55 $4.75


Ok, what the "Cap if cut" and "Cap Savings" show is what the cap number would be if the player was cut before that season and how much savings there would be. So, in Lepsis' case, cutting him after year one, would have been basically a wash with only $.05 million savings. However, cutting him (or him retiring) after his second year, results in a $2.95 million savings.

This number ($2.95 million savings) comes from two things. First, the team has to count both years 3 and 4 of the signing bonus paid when the contract was signed ($1.55 million a year) all in year 3, which amounts to $3.1 million. If he played in year three, he would have gotten $4.5 in cash/salary + counted $1.5 million against the cap from the signing bonus ($6 million) he was paid up front, meaning he would have counted $6.1 million against the cap in '08. When you subract what he would have cost ($6.1 Million) from the 'penalty' the Broncos will get by him retiring ($1.5 million x 2 years left on contract = $3.1 million), then the difference is $2.95 million, which is how much they save by him retiring.

In addition, they will also save his salary ($4.75 million) in '09, since he clearly won't be paid that. However, I mentioned salary only, because the Broncos are going to account for all the prorated bonus cap hit in '08.

So, another way to look at it is that over the final two years of his contract, the Broncos will save $7.7 million ($2.95 in '08 and $4.75 in '09) compared to if he was on the roster and playing under his current contract (assuming no renegotiation).

big thing to remember on contracts with signing bonuses, is that the cash is paid up front, BUT for cap purposes the accounting is done as if the person was receiving a prorated portion of the signing bonus each year of his contract.

HOpe that made it clearer and not less clear.


what if nalen retires? would the same scenario play out? do you have the details on his contract? rod smith? he is almost certain to retire too. it would be nice to get close to 10 million just by a few of these guys retiring. this would really help us in free agency.

I'm not sure. I am going to have to see if I can find more info on Nalen's contract.

Rotoworld and USAToday seem to have conflicting info. Rotoworld shows "2/1/2006: Signed a three-year contract. The deal included a $3 million signing bonus. 2007: $1.45 million (+ $550,000 roster bonus), 2008: $1.9 million (+ $550,000 roster bonus)"

However, the USAToday database shows him getting $3 million signing bonuses in '06 an '07, which doesn't make sense. If the Rotoworld data is correct, then the Broncos would have to escalate between $1 million and $1.28 million (depending on whether the '07 $550k roster bonus was prorated over '07 and '08 for cap purposes) and if he plays next year, he will get $1.9 million in salary, another $550k in roster bonus ($2.45 million cash and cap) vs. the $1 to $1.2 million that would count against the cap if he retires was cut.

So, it looks (assuming he really didn't get a second $3 million signing bonus that USAToday shows) that if Nalen retires or is cut, that the Broncos will save somewhere between $1.25 and $1.45 million in cap room.

So, if Lepsis and Nalen are both retired/cut, the team will save around $4.3 million against the cap next year.

Tned
01-01-2008, 02:46 PM
Ok so when push comes to shove does this mean that what Lepsis is still owed his going to be problematic?

No, bottom line is the team saves $2.95 million in '08 by him retiring, including the cap hit the have to 'escalate' for the last year of this signing bonus, PLUS they don't have to pay or count his '08 salary.

Both in terms of real dollars and cap hit, Lepsis retiring is good for the Broncos financially.

dogfish
01-01-2008, 02:58 PM
great career, and it's nice to see him walk away on his own terms. . . it's looking like the end of an era. . .


matt's been such a reliable guy over at left tackle, he's going to leave some big shoes for someone to fill. . . i think this really cements the need to spend a 1st day pick on the position this year. . .



BTW, it's nice to see dean and keith bishop posting here. . . . :beer:

Hawgdriver
01-01-2008, 04:04 PM
No, the 4.5 / 4.5 savings isn't correct, here's why.

Signing bonuses are handled in a certain way, and it was agreed to, mostly because until recent years, the NFL didn't have any guaranteed salary in their contract. So, before signing bonuses, a player could sign a 10 year, $50 million contract, and if after year one, the player was injured or played bad, the team could cut him, and not pay him any of the $45 million left on his contract.

So, the players union and NFL agreed on the concept of signing bonuses. The way a signing bonus works is it seperates when the cash is actually paid, from when it counts against the teams salary cap. So, just for a hypothetical, lets look at a player that signs a 5 year, $30 million contact, that includes $10 million in signing bonuses.



Bonus Bonus
Year Salary Paid Cap Total Cap
1 $2.0 $10.0 $2.0 $4.0
2 $2.5 $2.0 $4.5
3 $4.0 $2.0 $6.0
4 $5.0 $2.0 $7.0
5 $6.5 $2.0 $8.5


Ok, if you look at the above example (uses an escalating base salary figure, which is common in modern contracts), you will see a couple things, first, in year one, the player is paid $10 million in bonus money. This is cash that is physically given to him. However, only $2 million of that counts against the cap in year one, this is the prorated nature of the cap that accomplishes two things. First, it gives the player cash up front, and second, it penalizes a team that wants to cut a player after the first year or two of his contract.

At any point in that contract, if the player is cut or traded, all remaining money in the "bonus cap" column is counted towards the next seasons salary cap. So, in that example above, if the player was cut after season one, then then there would be $8 million of prorated signing bonus that hadn't been counted against the cap ($2 million x 4 years) that would have to be counted agaisnt the cap or escalated. That is $3.5 million more than the $4.5 million cap figure the player would have counted in year two of his contract if he stayed on the roster.

Then, if the player was cut after year two, then the team would have to escalate the last three years ($2 million x 3 years) or $6 million to count against the cap, vs. the $6 million ($4 million in salary, and $2 million in prorated cap) that the player would cost to keep him on the roster, so year three would be a wash in terms of keeping the player or releasing him.

Then, if he was cut after year three, then there is only $4 million left in uncounted bonus money ($2 million x 2 years) that would have to be escalated and counted, but because the salaries increase at the back end of contracts, it would cost $7 million ($5 million in salary and $2 million in cap) to keep the player on the roster, therefore, there is a cap savings of $3 million by cutting the player after the third year.

It is important to understand the seperation of when signing bonuses are paid and when they count against the cap. I will do the above breakdown, but with Lepsis' contract in my next post.

Thank you very much for this post, Tned. I know this topic gets dragged up every year, but I've never seen it laid out with such clarity.

So when Jake had to pay back money, that was the pro-rated cap bonus that was actually physically given to him upon signing the contract?

Hawgdriver
01-01-2008, 04:06 PM
BTW, it's nice to see dean and keith bishop posting here. . . . :beer:

Agreed. And with the immigration of the freaks, the quality of these forums continues to improve.

Tned
01-01-2008, 04:27 PM
So when Jake had to pay back money, that was the pro-rated cap bonus that was actually physically given to him upon signing the contract?

Exactly. He was paid the money up front (actually, some before signing with Denver, and some after his second year with Denver, which was a bonus that activated the final 5 years of his contract) in terms of the cash, but it was spread over seven years in terms of how it counts against the cap.

The NFLPA CBA (Collective Bargaining Agreement) has a clause that if a player refunds the team (willingly or by court action) bonus money already paid, then the team can use the amount refunded to reduce their cap number for that year.

So, if Jake were to repay TB the $7 million (they apparently now own the rights to the refund, even though Denver paid the cash), then TB will have an extra $7 million of cap room in '08.

Requiem / The Dagda
01-01-2008, 04:48 PM
I'm glad this happened, for Matt and for the team to move on. Thank you.

Bronco4ever
01-01-2008, 04:55 PM
Dan Neil, Nalen, and Lepsis were studs in the early part of the new century. It's the wind of change I guess. Hopefully some of our young guys can fill in the shoes by these great linemen. Best of luck to Matt in his post football life.

ydave77
01-01-2008, 04:55 PM
Does anyone think there is a chance Denver goes after the prorated signing bonus money that hasnt been "earned" yet? Matt has been a team player, and has played so well for so long, that I doubt it. But it is an option for the front office. The 3.1 million that he will count against the cap next yr, is available for the FO to get back.
Right now Matt basically ended up with a pretty amazing 2 yr deal. His contract changed from being a 4 yr 25 mill contract to a 2 yr/16 million contract. Avg salary of 8 mill instead of 6 mill. My guess is the FO will leave it be since he has never been a me me me guy, pretty unselfish, and did whatever was asked for him. But I guess we will find out.

Broncospsycho77
01-01-2008, 05:00 PM
:salute: to Matt. Thanks for the loyal service, and the reputation of not talking to the media :D

broncosfanscott
01-02-2008, 03:22 AM
I wish all the best to Matt after football and I thank him everything he has done while playing for the Broncos.

Hopefully one of our young guys can fill in next year.

Medford Bronco
01-02-2008, 03:35 AM
Good luck Matt :salute:

now we are even thinner on the line, yikes

Mike and Ted have their work cut out for them, that is for sure

GEM
01-02-2008, 11:44 AM
Hey Javon......read up on this.


THAT'S how a real man acts.


Thanks for the years Matt. :salute:

broncosinindy
01-02-2008, 03:12 PM
thanks tned.

the reports are saying he is leaving 9 million on the table by walking away. he was also paid all of his remaining bonuses in 2006 and 2007 meaning he has no more bonuses coming to him only salary. so if that is true then i think it's 4.5 mill savings in 2008 and 4.5 mill in 2009.



what if nalen retires? would the same scenario play out? do you have the details on his contract? rod smith? he is almost certain to retire too. it would be nice to get close to 10 million just by a few of these guys retiring. this would really help us in free agency.i dont know numbers but nalen has restructured. so i am gonna say he is gonna be owed some dough

ydave77
01-02-2008, 06:18 PM
Does anyone think there is a chance Denver goes after the prorated signing bonus money that hasnt been "earned" yet? Matt has been a team player, and has played so well for so long, that I doubt it. But it is an option for the front office. The 3.1 million that he will count against the cap next yr, is available for the FO to get back.
Right now Matt basically ended up with a pretty amazing 2 yr deal. His contract changed from being a 4 yr 25 mill contract to a 2 yr/16 million contract. Avg salary of 8 mill instead of 6 mill. My guess is the FO will leave it be since he has never been a me me me guy, pretty unselfish, and did whatever was asked for him. But I guess we will find out.

Good question ydave77. Not sure...

dogfish
01-02-2008, 06:33 PM
Good question ydave77. Not sure...

:laugh:



probably not. . . doesn't seem like a common practice except when there's some kind of bad blood between player and team (for example, i don't think the broncos appreciated it that plummer didn't tell them he was going to retire before they worked to trade him), and there certainly isn't any between the team and lepsis. . . anything's possible, but i'd be a little surprised to see them do that. . .


good to see you posting, dave. . . :beer:

D1g1tal j1m
01-02-2008, 06:40 PM
Thanks for the memories Matty. I don't hold it against you that TD became the shell of the player he was after the roll up on his knee by you. You help solidify the line that opened holes for TD in the first place.

Good luck to you. I still think you can play the Right Tackle spot if you wanted. Really you could. If you wanted to consider it. Just saying....

Sparkie
01-02-2008, 09:07 PM
Enjoyed watching Matt this year, not least because he's been my "adopted" player on BroncosForums. This has been my first season as a Broncos fan & follower of NFL, and it's been good to focus on one player as a way of getting to know the game and the team as a whole.

As other posters have expressed, it came as a shock to find out that he's retiring - but he is doing so honourably and it says a lot about the man.

*salutes Matt* :salute:

ydave77
01-02-2008, 11:16 PM
:laugh:



probably not. . . doesn't seem like a common practice except when there's some kind of bad blood between player and team (for example, i don't think the broncos appreciated it that plummer didn't tell them he was going to retire before they worked to trade him), and there certainly isn't any between the team and lepsis. . . anything's possible, but i'd be a little surprised to see them do that. . .


good to see you posting, dave. . . :beer:


thanks dog, i really just log on to see who your next avatar is going to be ...

but yh for recovering part of lepsis bonus, i figured it was unlikely, just wondering, since i figure they have the option

seems like we might be in a spot of trouble there now, at this pt, i dont know what to make of our defense
i think we should draft OT in the 1st and maybe even another guard later in the draft
if we cant stop em, maybe we can outscore em
--though I still do want another DT somewhere in there

pnbronco
01-03-2008, 01:07 AM
Thank you very much for this post, Tned. I know this topic gets dragged up every year, but I've never seen it laid out with such clarity.

So when Jake had to pay back money, that was the pro-rated cap bonus that was actually physically given to him upon signing the contract?

I agree, you did a great job Tned! I really understood the whole break down. So when Trevor Pryce was cut and I heard he was due to make .... Did he have a contract where his wages were larger at the end of it? Also what is a roster bonus? You mentioned that in Nalen's part and is it that something that's normal in a contract?

Tned
01-03-2008, 08:42 AM
I agree, you did a great job Tned! I really understood the whole break down. So when Trevor Pryce was cut and I heard he was due to make .... Did he have a contract where his wages were larger at the end of it? Also what is a roster bonus? You mentioned that in Nalen's part and is it that something that's normal in a contract?


I can't remember Pryce's specifics, but what is pretty standard is to give a big signing bonus, and then have the first year or two around a million, give or take, sometimes down around the league minimum, then having the annual salary bounce up pretty quick. For higher paid players, they might start out with a couple million the first year or two, and then bounce up to the $4-6 million range (or higher) by the last couple years of their contract.

It is this setup why you so often see veterans released or renegotiate before the last couple years of their contract. If everyon stayed under contract through the life of their contracts, teams would be over the cap every year. The contracts are structured to give a big slug of cash up front (signing bonus), then renegotiate/release in the final 1/4 or 1/3 of the contract, in most cases.

There are three types of bonuses (as far as I know), Signing bonus, which a player gets when they sign a new contract, roster bonus which is built into the contract and is paid if a player is on the roster at the time it is due, and then option bonus (not 100% clear on how this works) which I believe is like what Jake got after his second year, he was given a $6 million bonus that activated the last five years of the contract and was 'optional' for the team

The big difference among these bonuses is that some can be prorated for cap purposes and some can't.

I think typically, anything that is guaranteed, cannot be prorated for cap purposes, it is paid and counted in the same year. My understanding is that roster bonuses are the type that has to be paid and counted in the same year. The reason for this is if it is guaranteed salary/bonus, then it isn't prorated (but I am not 100% sure on this).

Option bonuses on the other hand is an option that the club can pay, and extend a contract, or not pay, and the player becomes a free agent. The Jake contract was this way. He received a $7 signing bonus for a 7 year contract, but only the first two years were guaranteed and the team had to pay a $6 million option bonus after the second year, to activate the final 5. By setting up the contract this way, both the original $7 million signing bonus and $6 million option bonus before year three, were all able to be spread over the length of the contract in terms of how they count against the cap.

Sorry, I am in a rush to head off to work, so not sure if any of this made sense.

pnbronco
01-03-2008, 10:26 AM
Tren it made total sense. Thank you for taking the time to explain it. These are terms that I have always heard but didn't really understand. I really appreciate you being so patience. Hope work goes good for you...

Lonestar
01-03-2008, 05:42 PM
:laugh:



probably not. . . doesn't seem like a common practice except when there's some kind of bad blood between player and team (for example, i don't think the broncos appreciated it that plummer didn't tell them he was going to retire before they worked to trade him), and there certainly isn't any between the team and lepsis. . . anything's possible, but i'd be a little surprised to see them do that. . .


good to see you posting, dave. . . :beer:


Do you really believe that mikey did not know that Jake was thinking about retiring?

Your smarter than that it was reported in the DP. Maybe mikey does not read it any more..

Lonestar
01-03-2008, 05:53 PM
here is Lepsis numbers over the years


Player
Lepsis, Matt

Year Base Salary Sign Bonus Other Bonus Total Salary Cap Value
2007 $ 3,150,000 $ 000,000 $ 200,000 $ 6,350,000 $ 5,850,000
2006 $ 2,800,000 $ 000,000 $ 6,200,000 $ 9,000,000 $ 6,400,000L
2005 $ 3,500,000 $1,000,000 $ 500,000 $ 5,000,000 $ 5,300,000
2004 $ 3,800,000 $ 000,000 $ 200,000 $ 4,000,000 $ 5,100,000
2003 $ 3,400,000 $ 000,000 $ 500,000 $ 3,900,000 $ 5,000,000
2002 $ 525,000 $ 000,000 $ 180,040 $ 705,040 $ 1,805,040
2001 $ 425,000 $ 6,600,000 $ 4,640 $ 8,129,640 $ 1,529,640
2000 $ 360,000 $ 17,000 $ 14,300 $ 391,300 $ 391,300


http://asp.usatoday.com/sports/football/nfl/salaries/playerdetail.aspx?lname=lepsis&player=1373&loc=interstitialskip