Rarely can an NFL team and a player who has not kept his contract find a compromise. Often, players are released for salary-limiting purposes, rather than finding a way to hold on, especially if a team has difficult decisions over the ceiling.
But the Green Bay Packers are no ordinary organization, and Preston Smith are apparently willing to bet on themselves in the off-season. The two parties allegedly agreed on a new contract structure for the veteran supporter, which Smith will retain in Green Bay and keep in the team’s pass-rush rotation. For the Packers, the team will receive almost as much salary relief in 2021 as it would have had if it had released Smith directly. For Smith, he has an opportunity to make more money in 2021 than he would have had before, while avoiding a potentially painful roster cut and free agent search during a difficult off-season for players.
According to Ian Rapoport of NFL Network, the contract is as follows:
- $ 1 million basis
- $ 6.5 million signing bonus (split equally as a $ 3.25 million cap in 2021 and 2022)
- $ 300,000 active roster bonuses per game
- $ 200,000 Workout Bonus
- There will probably be no $ 4.4 million in pocket incentives (which will not be taxed until the amount of 2021)
If the $ 4 million bonus money for the 2021 limit is taken into account from Smith’s original contract, this deal will give him a $ 8.75 million cap this year, compared to the $ 16 million it would cost without any restructuring. Furthermore, it is almost the same amount that the Packers would bring in dead money if they released him straight ($ 8 million).
The bag incentives kick in at 6, 8, 10, 12 and 14 bags for the 2021 season. So if Smith hits the 14-pocket mark, he earns the full incentive amount and exceeds the cash he would receive in 2021, $ 12 million.
For Smith, who apparently considers the possibility of a pink slip, he gets the reassurance of knowing he has a job this season and an opportunity to get some extra money if he has a monstrous year chasing backs. He also picked up a $ 6.5 million check today and gets an extra $ 2.5 million more than his $ 4 million roster bonus that would pay off next Friday. However, the Packers will keep Smith in the loop, making the offseason an urgent need this offseason, while getting the relief they desperately need before the league year begins next Wednesday.
With this restructuring, Green Bay will get a bigger onslaught on Smith if they decide to move on from him after 2021. He would have a bonus prize of $ 7.25 million, which would be the dead money on the hood if they decided to divorce. this time in 2022. But with the cap expected to bounce back next year, the team kept its fringe group intact, giving Smith the opportunity to bounce back while dropping some money off to next season.
It really is a rare win-win.