Possible Contract Extensions for J. Joseph & D. Brown

February 15th, 2017

Houston Texans have two veteran players that would be excellent candidates to provide contract extensions to lower their cap charge in 2017, specifically Johnathan Joseph & Duane Brown.  Below we will examine possible solutions, via contract extension, to free up cap space for 2017; while maintaining similar cash flow.  I do not believe either Joseph or Brown should take a salary cut, especially given the nature of the NFL market.  I do not think the Texans are prepared to release either player either.  Their contracts need to be reworked without disrupting their expected cash from their current contracts.

Duane Brown

Brown is 31 years of age and was a solid performer for the 2016 regular once he returned from injury.  Brown has two years remaining on his current contract, including $0 dead money.  The Texans may have a difficult time getting Brown to accept any kind of a deal considering the lack of depth behind him.

Current Contract

2 years worth $19,400,000

Year Base Salary Pro-Rated SB Roster Bonus Cap Charge Cash Flow Running Cash Flow
2017 $9,650,000 $0 $0 $9,650,000 $9,650,000 $9,650,000
2018 $9,750,000 $0 $0 $9,750,000 $9,750,000 $19,400,000

Proposed Contract Extension

4 years worth $35,500,00

Year Base Salary Pro-Rated SB Roster Bonus Cap Charge Cash Flow Running Cash Flow
2017 $5,500,000 $1,000,000 $0 $6,500,000 $9,500,000 $9,500,000
2018 $8,500,000 $1,000,000 $0 $9,500,000 $8,500,000 $18,000,000
2019 $8,500,000 $1,000,000 $0 $9,500,000 $8,500,000 $26,500,000
2020 $9,000,000 $1,000,000 $0 $10,000,000 $9,000,000 $35,500,000

This contract is a 4 year contract worth $32,500,000 with $11,500,000 in guaranteed money.  The guarantee consists of a $4.0 million signing bonus, $5.5 million guaranteed salary in 2017, and $2.0 million guaranteed portion salary in 2018.  This contract offers Brown similar cash flow for 2017, a full assurance for 2017 and some assurances in 2018.  The two year cash flow is lowered in exchange for the guaranteed money and team assurances.  Under this contract the Texans could move on in 2019 with $2.0 million in dead money.  This would keep Brown in the Top 8 in terms of cash flow for 2017 when compared to other left tackles; and put Brown in Top 13 for cash flow in 2018.

This extension offers $3,150,000 in salary cap savings for 2017 season; and $1,250,000 in 2018.

Johnathan Joseph

Joseph is 32 years of age, and is still one of the better cornerbacks in the league.  While I do think that Kevin Johnson & A.J. Bouye are the future outside DB’s for the Texans, Joseph will provide excellent leadership and depth for the position group.  The Texans have three cornerbacks on the field a majority of the time.  Joseph has one year remaining on his current contract with $500,000 in dead money and $0 guaranteed salary.

Current Contract

1 year worth $6,500,000

Year Base Salary Pro-Rated SB Roster Bonus Cap Charge Cash Flow Running Cash Flow
2017 $6,000,000 $500,000 $406,250 $6,906,250 $6,500,000 $6,500,000

Proposed Contract Extension

3 years worth $18,000,000

Year Base Salary Pro-Rated SB Roster Bonus Cap Charge Cash Flow Running Cash Flow
2017 $2,500,000 $1,500,000 $406,250 $4,406,250 $6,000,000 $6,000,000
2018 $5,500,000 $1,000,000 $500,000 $7,000,000 $6,000,000 $12,000,000
2019 $5,500,000 $1,000,000 $500,000 $7,000,000 $6,000,000 $18,000,000

This contract is a 3 year contract worth $18,000,000 with $5,500,000 guaranteed.  The roster bonuses are paid per game active ($31,250).  The guarantee consists of a $3.0 million signing bonus and 2017 guaranteed salary of $2.5 million.  This contract offers slightly less ($500k less) cash flow than Joseph was scheduled to earn, but instead provides him assurance that he will be on the roster for 2017.  The cash flow for 2017 keeps Joseph in the Top 25, same as his original contract.  Joseph’s cash flow would place him in Top 15 for the 2018 league year.

The team could also change the flow of the 2018 payment schedule.  The team could opt to lower the salary to $3.5 million but include a $2.0 million roster bonus due after the 2018 league year to provide some incentive to Joseph.

This extension offers $2,500,000 in salary cap savings for 2017 season.

In total with these two contract extensions the Texans would save $5,650,000 in cap savings for the 2017 season.

 

Troy

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