Chargers Daily Links: Corey Linsley has reworked his deal

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Good morning, Chargers fans!

The first domino has fallen towards cap compliance for the Los Angeles Chargers.

Corey Linsley has re-worked or restructured his contract in a move that has reduced his salary for the 2024 season. Here is Yates breaking the move down below:

I don’t think Yates is breaking this news correctly; anytime the word “restructured” is used in reporting, it should mean the conversion of base salary to a bonus that’s spread over the remainder of players’ contract (or in the case of a max restructure, a full five years with the years that extend after the player’s contract earmarked as “void” years). Since this is a tool commonly used by general managers and has a specifically process attached to it, the term “restructure” should be used to reflect this type of transaction as it’s consequences are far different than taking a pay cut.

What makes far more sense is that Corey Linsley finally decided on his retirement, as he previously said he was “99% sure” he would be hanging up his cleats.

When Linsley signed with the Chargers and was awarded his $13 million signing bonus, that cash payment was spread equally across the five years of his deal as a “prorated signing bonus,” meaning although he collected the $13 million immediately, $2,600,000 was leveraged against the cap in each of his five years.

A tricky cap mechanism is when player is released or traded in the offseason, the remaining prorated bonus money accelerates to the current year’s cap as “dead money.” So, should Corey Linsley retire today, the $2,600,000 in prorated signing bonus allocated to 2025’s cap sheet would accelerate to 2024, and the Chargers would be charged $5,200,000 in 2024 dead money. However, Linsley would be completely off the books in 2025.

If Corey has made the decision to retire, there’s no opportunity cost or risk to take a pay cut (which should be distinguished from the word “restructure”) and hold off on filing the paperwork until June 1st. After June 1st, any contracts that are traded or terminated will not accelerate into the current budget sheet, but will accelerate into the next offseasons. In Linsley’s case, it would keep the $2,600,000 as dead cap against 2025’s sheet. There’s no harm to Linsley for making this move, but it aides his current team in their cap predicament.

If this were a restructure as opposed to a pay cut, then Corey converted the $10,290,000 in non-guaranteed base salary Yates is referencing into a signing bonus, spread evenly between his remaining two years or over a full five with three void years earmarked on his contract.

Since a standard restructure would actually save less than outright cutting or retiring Linsley, the max restructure would be the only plausible option outside of a pay cut. This would mean Corey’s 2024 hit would become the vet minimum ($1,210,000) plus the prorated signing bonus ($2,058,000), for a total of $3,268,000. The remaining $8,232,000 of this newly-converted money would be charged against the next four years of cap hits, but would accelerate into 2025’s budget sheet as dead cap when Linsley filed for retirement anytime after June 1st, 2024. It would also be added to the $2,600,000 that is already earmarked for 2025, making Corey’s total dead cap next year $10,832,000.

Simply put, it doesn’t make sense for the team to go through that much mental gymnastics to save an extra $2,600,000.

As I wrote this, OverTheCap seems to already be suggesting that this is in fact a pay cut, and not a restructure.

BFTB will be updated with a follow up when it’s formerly announced.

Chargers News:

Eric Smith shares what top league insiders had to say about the Chargers new General Manager, Joe Hortiz (Chargers.com)

NFL executives and coaches ranked the Jim Harbaugh hire as the top offseason hire in the league (Chargers.com)

Jason Red provides projections of the extensions three contract-year players could sign this season (Bolt Beat)

Joey Bosa is entering a competitive event this offseason, facing off against Joey Chestnut (Charger Report)

Field Yates has reported Corey Linsley has restructured his contract, details to come (Pro Football Talk)

NFL News:

Chargers’ 2023 rookie class ranked 25th by NFL.com’s staff (NFL.com)

Bucky Brooks has Jayden Daniels pegged as QB2, adding to speculation of a very early run on QB’s (NFL.com)

Albert Breer highlights heroic behavior from the Chiefs during the parade shooting, and the commendable response from the organization (Sports Illustrated)

Jimmy Garoppolo likely voided his contract guarantees with recent PED violation, release expected (The Sporting News)

Jeff Kerr believes Austin Ekeler is a worthy franchise tag gamble for the Chargers; Bolts from the Blue staff disagrees (CBS Sports)

Dallas tagged as a potential landing spot for Joey Bosa (Heavy.com)