Funny money 101
The funny-money season is well underway. (Nate Clements, highest paid defensive player in NFL history? Yeesh!) Most experts point out that the first three years of contracts is what really counts and the bonus money is the biggest factor to both parties.
Players are getting more guaranteed money than ever before in the form of signing bonuses. Smart teams will be careful not to overload their salary caps by adding extra years to contracts with big money signing bonues.
Yearly cap numbers are figured using the players base salary and an amortized portion of the signing bonus. So, if a player gets an eight-year deal and a $20 million signing bonus, only 1/8th or $2.5 million, plus the base, count against the team's salary cap each year. There are a lot more complications -- likely and unlikely to be earned incentives, for example -- but these are the basics.
Without seeing the breakdown of each contract, it's difficult to tell just how much each guy will really get and what those cap numbers are but you can trust a lot of the deals that are being signed right now will have non-guaranteed big money on the back end. That's money players almost certinaly won't see because they'll either be cut or restructure the contract after three years.
It is possible for teams to pay a minimum salary in the early years of a deal and backload it with big money. The team's and players reach a compromise where the player gets the guaranteed cash in the bonus and the team's don't hurt themselves by spreading the payment over time -- for cap purposes.
So, when you see the reports of free agent signings, look to see the amount of the signing bonus. If a contract is broken down by base salary in years, don't be surprised if the base is significantly greater at the back end.