The question posed to
49ers general manager John Lynch at the
NFL Scouting Combine was a relatively simple one.
Will the 49ers, given the struggles of their interior pass rush in 2022, look into a big investment at defensive tackle?
“We’ll always put a focus on the quality of the player and the quantity,” Lynch responded. “But I think some of that has to come from player development. … You’d love to add a cornerstone for five years in there, but D-line — those usually happen when you’re picking second and you get a guy like (Nick) Bosa or you pay through your ears, you know? So we’ve got to be creative and come up with some other ways.”
Less than two weeks later, it became clear that Lynch was bluffing. On Monday, the 49ers splurged in the free-agent market, agreeing to terms with Javon Hargrave, the top defensive tackle available. Hargrave’s new four-year contract is worth up to $84 million over four years.
It turns out that the 49ers are willing to pay through their ears to add a cornerstone to the D-line, after all.
But there was technically
some truth in Lynch’s words. He did mention the 49ers’ need to be “creative” and they’ve certainly come up with “other ways” of fitting Hargrave and other signings — headlined by quarterback
Sam Darnold — into a crowded salary-cap situation.
The team’s work is far from done — the 49ers have
close to no 2023 salary-cap space at the moment— but they have made some surprising splashes and their financial gymnastics to reach this point are worth documenting.
Let’s examine how 49ers chief negotiator Paraag Marathe has made ends meet so far.
Hargrave’s deal: Big-time backloading
The star defensive tackle’s deal is worth $21 million annually, but only $6.6 million of that counts against the 2023 cap.
How the heck did the 49ers accomplish this? Details below come from Over The Cap.
PRTD SB stands for “prorated signing bonus” and
OTH BON stands for “other bonus” money.
Javon Hargrave contract breakdown (OTC)
YEAR | BASE | PRTD SB | OPT BON | OTH BON | CAP |
---|
2023 | $1.17m* | $4.6m* | | $850k* | 6.6m |
2024 | $8.9m* | $4.6m* | $1.2m* | $850k | 15.5m |
2025 | 19.9m | $4.6m* | $1.2m* | $850k | 26.6m |
2026 | $21.7m | $4.6m* | $1.2m* | $850k | 28.3m |
2027 | Void | $4.6m* | $1.2m* | | $7m |
2028 | Void | | $1.2m* | | |
*Fully guaranteed ($100,000 of 2024 “other bonus” money is also fully guaranteed)
Marathe managed this heavy backload through the dual-bonus mechanism, which he’d
most recently utilized to keep
Fred Warner’s initial financial footprint affordable during the cap-constricted 2021 cycle. By rule, signing and option bonuses are paid to players immediately but prorated over up to five years for cap purposes. The 49ers applied both types of bonuses to Hargrave’s contract to maximize short-term savings.
The prorated signing bonus bills (totaling $23 million, the full size of Hargrave’s signing bonus) are shaded in blue above, while the prorated option bonus bills (totaling $6 million) are shaded in green. Hargrave’s guaranteed option bonus doesn’t kick in until 2024, thereby allowing the 49ers to dodge cap damage from it in 2023, when space is most precious.
The 49ers also tacked two voidable years to the end of Hargrave’s deal. The first one, in 2027, allows for a full five-year proration of the signing bonus. The second one, in 2028, allows for a full five-year proration of the option bonus. All portions of the bonuses that are amortized beyond 2026 — a total of $7 million — are scheduled to accelerate and hit the cap as dead money in 2027 when the deal voids.
https://theathletic.com/4304355/2023/03/13/javon-hargrave-49ers/