{"id":18120,"date":"2013-02-12T16:50:07","date_gmt":"2013-02-12T20:50:07","guid":{"rendered":"http:\/\/www.jetnation.com\/?p=18120"},"modified":"2013-02-12T23:45:59","modified_gmt":"2013-02-13T03:45:59","slug":"potential-sanchez-restructure-explained","status":"publish","type":"post","link":"https:\/\/miletestsite.com\/jets\/2013\/02\/12\/potential-sanchez-restructure-explained\/","title":{"rendered":"Potential Sanchez Restructure Explained"},"content":{"rendered":"

There appears to be much confusion over Jets quarterback Mark Sanchez\u2019s current contract and what would occur if he agreed to restructure.\u00a0 As recently reported on JetNation<\/a> there is conflicting information to whether or not the Jets have even approached Sanchez about a restructure but this article will attempt to explain what will and won\u2019t occur if a restructuring takes place.<\/p>\n

In March 2012 the Jets gave Mark Sanchez <\/a>a new contract as his original rookie deal was set to expire after the 2013 season.\u00a0 Many people have been mislead by media reports as well as the timing of the new deal that it was given to Sanchez as \u201cmake-up\u201d money for the Jets inquiring about Peyton Manning.<\/p>\n

This is 100 percent without a doubt not the reason why the Jets gave Sanchez a new contract.\u00a0 The new contract was given to provide needed salary cap relief <\/a>for the 2012 season, no other reason applies, as Sanchez did not earn nor deserve the new deal he got.\u00a0 Simply put the cash strapped Jets lost on a risky financial gamble which is\u00a0stifling them under this year\u2019s salary cap.<\/p>\n

Sanchez and the Jets came to terms on a deal extending through the 2016 season and included some salary changes from his old contract for 2012 and 13.\u00a0 Under his old contract Sanchez was to count $14.25 million on the 2012 cap but after the new contract Sanchez cost $14.25 million on the 2012 cap.\u00a0 What about the 2012 salary cap relief?\u00a0 We\u2019ll explain how that occurred a little later.\u00a0 The Jets raised Sanchez\u2019s 2013 salary<\/a> by $2.75 million and guaranteed his base salary of $8.25 million. \u00a0There is no other guaranteed money owed to Sanchez after the 2013 season, so even though there are actual salary numbers in 2014-16 we\u2019ll concentrate on 2012-13.<\/p>\n

The Jets converted $8 million of Sanchez\u2019s 2012 base salary into signing bonus, by doing this they were able to prorate (spread) that money out evenly over the life of the contract now 5 years. \u00a0The $8 million bonus was paid in full to Sanchez early instead of throughout the season but $1.6 million was prorated or added to the 2012-16 caps.\u00a0 This allowed the Jets additional 2012 salary cap space as you reduce Sanchez’s base salary number by $8 million but add $1.6 million of the proration onto the 2012 cap leaving a savings of $6.4 million that year.<\/p>\n

If Sanchez agrees to restructure his contract this year he will not give up any of the $8.25 million guaranteed salary nor will the Jets give Sanchez any more guaranteed money.\u00a0 A restructure would take a portion of Sanchez base salary, for this example we\u2019ll use $7 million, converting it into signing bonus and prorating it over 4 years 2013-16.\u00a0 This would push $1.75 million of prorated money into 2013, 14, 15 and 16 caps, total of $5.25 million in savings.\u00a0 The new prorated money would get added to the prorated money from 2012 increasing the total prorated bonus cap charge to $5.85 million in 2013, Sanchez has an additional $2.5 million from a prorated 2010 salary advance<\/a> included in this year, $3.35 million in 2014-16.<\/p>\n

Sanchez would still get his $8.25 million this year but $7 million of it once he signs the restructured contract than $1.25 million throughout the season, he\u2019s not losing money.\u00a0 The Jets get savings now but the prorated money would accelerate, all be added together onto next year\u2019s cap or possible over two years, if Sanchez got released after the 2013 season causing a huge \u201cdead money\u2019 cap charge, money which counts on the cap for a player no longer there.\u00a0 If this restructure example occurred the Jets would save now but likely pay later.<\/p>\n

Most players will agree to such a restructure since they are not\u00a0financially hurt, in fact they usually like getting a big check early, but players consult their agents about any contract change.\u00a0 So why wouldn\u2019t Sanchez agree to this if the Jets ask him to?<\/p>\n

By changing the contract in the manner described above Sanchez would have a 2013 base salary of $1.25 million.\u00a0 Now if a team wanted to trade for Sanchez they would be acquiring that guaranteed salary only for 2013 with no other guaranteed monies left in his current contract.\u00a0 Any prorated money, already paid by the Jets, stays with them and they have to deal with whatever the cap charges would be depending upon the timing of a trade.<\/p>\n

Sanchez has no offset<\/a> in his contract meaning if the Jets released Sanchez he could sign with another team get the $8.25 million from the Jets plus whatever salary he is paid by another team often referred to as double-dipping.\u00a0 Sanchez has to agree to any contract restructure if a team wanted to trade for him since no other team will pay the $8.25 million salary.<\/p>\n

Leaving his contract as is basically allows Sanchez to have a no-trade clause without having one, (Editor’s Note: not completely sure Sanchez’s contract is void of a no-trade clause but reports the Jets were looking to trade him <\/a>suggest there is not one).\u00a0 So if Sanchez lowers his base salary to provide salary cap space he might find himself traded somewhere he doesn\u2019t want to go.\u00a0 This among other things might deter Sanchez from agreeing to any contract changes.<\/p>\n

It seems unlikely that Sanchez\u2019s contract will be restructured and he\u2019ll play out 2013 under his current terms then be evaluated from there.\u00a0 The Jets made a decision to give out this contract they will probably just have to live with the current financial consequences.<\/p>\n","protected":false},"excerpt":{"rendered":"

There appears to be much confusion over Jets quarterback Mark Sanchez\u2019s current contract and what would occur if he agreed to restructure.\u00a0 As recently reported on JetNation there is conflicting information to whether or not the Jets have even approached Sanchez about a restructure but this article will attempt to explain what will and won\u2019t […]<\/p>\n","protected":false},"author":19,"featured_media":3041,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1337,213],"tags":[],"class_list":{"0":"post-18120","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-home-slider","8":"category-jet-news"},"acf":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/miletestsite.com\/jets\/wp-content\/uploads\/2009\/10\/sanchez.jpg","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/peLffi-4Ig","jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/miletestsite.com\/jets\/wp-json\/wp\/v2\/posts\/18120","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/miletestsite.com\/jets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/miletestsite.com\/jets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/miletestsite.com\/jets\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/miletestsite.com\/jets\/wp-json\/wp\/v2\/comments?post=18120"}],"version-history":[{"count":17,"href":"https:\/\/miletestsite.com\/jets\/wp-json\/wp\/v2\/posts\/18120\/revisions"}],"predecessor-version":[{"id":18126,"href":"https:\/\/miletestsite.com\/jets\/wp-json\/wp\/v2\/posts\/18120\/revisions\/18126"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/miletestsite.com\/jets\/wp-json\/wp\/v2\/media\/3041"}],"wp:attachment":[{"href":"https:\/\/miletestsite.com\/jets\/wp-json\/wp\/v2\/media?parent=18120"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/miletestsite.com\/jets\/wp-json\/wp\/v2\/categories?post=18120"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/miletestsite.com\/jets\/wp-json\/wp\/v2\/tags?post=18120"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}